Guide to Federal Rulemaking for Small Businesses

Understanding how federal regulations are made can help small businesses navigate the complex regulatory landscape and advocate for fair treatment. The federal rulemaking process ensures that regulations are developed transparently and systematically, and small businesses are encouraged to participate in shaping policies that affect them.

This guide outlines how federal regulations are created, how they may impact your business, and how you can get involved in the process.

What is Federal Rulemaking?

The federal government uses comment letters to gather feedback on proposed regulations and rules that can affect small businesses. Advocacy encourages small businesses to express their concerns abFederal rulemaking is the process by which federal agencies create regulations to enforce the laws passed by Congress. These regulations are legally binding and can affect the way your small business operates.

The process is designed to be transparent and open to public input so that all stakeholders, including small businesses, have a chance to voice their concerns.

The Federal Rulemaking Process: Step-by-Step

The process of creating federal regulations typically follows these key steps:

  1. Proposed Rulemaking (Notice of Proposed Rulemaking or NPRM):
    • Agencies publish a notice in the Federal Register to inform the public about new regulations they are considering. This is the opportunity for small businesses and other stakeholders to comment on the proposed rules.
    • How it impacts you: You can submit feedback during this public comment period to share concerns or suggest improvements to the proposed rule.
  2. Public Comments:
    • After the proposed rule is published, there is a comment period (usually 30-60 days) where businesses and individuals can submit feedback. The agency is required to review all public comments and consider them before finalizing the rule.
    • How it impacts you: Small businesses can submit comments to help shape the final regulation and ensure that their concerns are addressed.
  3. Final Rule:
    • After reviewing public comments, the agency will issue a final rule, which is the regulation that will be enforced.
    • How it impacts you: This final rule is the regulation that small businesses must follow. If there are significant changes to the rule after the comment period, businesses need to adjust their operations to comply.
  4. Effective Date:
    • The final rule will include an effective date—the date when the regulation goes into effect. Businesses will need to comply with the rule starting on that date.
    • How it impacts you: Small businesses must ensure they understand the rule and take the necessary steps to comply by the effective date.

How Small Businesses Can Participate

Small businesses play a crucial role in the rulemaking process. Here’s how you can get involved:

  • Monitor Federal Register: Stay updated on new rule proposals that may affect your business by regularly checking the Federal Register or signing up for notifications.
  • Submit Comments: During the public comment period, submit your comments to the agency. This is your opportunity to express concerns, suggest alternatives, or offer data that shows how the proposed rule might affect your business.

Work with Advocacy: The Office of Advocacy is dedicated to representing small businesses in the rulemaking process. You can reach out for assistance in understanding or commenting on a proposed rule.

Why It Matters for Your Business

Federal regulations can affect a wide range of activities, from hiring practices to environmental compliance to product labeling. Understanding and participating in the rulemaking process allows small businesses to:

  • Access resources and guidance: The SBA’s Office of Advocacy can provide support and clarification on how rules will affect your business.
  • Avoid costly compliance surprises: Stay informed about new regulations that could impact your business.
  • Influence regulations: Provide valuable input that can help shape policies that work better for small businesses.

Need Help? Download our basic guide to federal rulemaking.

Basic Guide to Federal Rulemaking »

The Office of Advocacy represents small businesses in the federal rulemaking process and can help you understand how proposed regulations might affect your operations. If you need assistance submitting a comment or want to learn more about how to get involved, reach out to us at advocacy@sba.gov.