Federal lawmakers recently introduced a proposal that was designed to help save the government money, but some experts say that it could also be problematic for many small business owners. Specifically, the law would fold the U.S. Small Business Administration, and the Departments of Labor and Commerce, into one large entity, and now it seems to be gaining steam on Capitol Hill and among lobbyists.
The legislation was first proposed by U.S. Sen. Richard Burr, a Republican representing North Carolina, who says that these three agencies basically do many of the same things, and thus the overlap between the services they provide amounts to some sort of government waste, according to a report from Fox Business. Ideally, moving these operations into one entity could save taxpayers billions of dollars per year. Interestingly, some experts say that many companies might not even see any affect at all.
Interestingly, though, small business lobbyists who one might think would be staunchly opposed to any changes to the ways in which the SBA operates are actually open to the idea, the report said. Some note that the agency might do well to have its resources boosted by the consolidation, and it appears that rolling all these functions together would only really impact small businesses that contract with the federal government for work.
"The SBA has not played a significant role in advocating for the key things small business owners need – fundamental tax reform, affordable health coverage and regulatory reform and relief," Karen Kerrigan, president of the Small Business and Entrepreneurship Council, told the site. "In fact, in all of these areas, conditions have deteriorated."
One of the largest voices in the sector, though, remains neutral on such a change, the report said. The National Federation of Independent Business has not taken an official position, but has stated that whatever happens, it wants to ensure the SBA's Office of Advocacy is still in place so that all small business owners "have a voice."
Entrepreneurs who are worried about the ways in which such changes might affect their bottom lines might want to make sure they're doing all they can to cut expenses in the coming months, including those for small business insurance. By shopping around for the most affordable workers' compensation or liability insurance it might be possible to save thousands of dollars per year, which can then be devoted to other aspects of the company.