Letter to Senator Ernst in Support of the “Prove It Act”

By SBE Council at 31 August, 2023, 3:02 pm

The Honorable Joni Ernst

Ranking Member

Committee on Small Business & Entrepreneurship

United States Senate

Washington, D.C.  20510

Dear Senator Ernst:

The Prove It Act, legislation you recently introduced, could not come at a more important time for our nation’s small businesses. Federal regulatory agencies are working at full-speed generating new rules, compliance regimes and costly mandates, and there is little to no accountability in assessing or taking steps to determine or minimize the burden of these regulations on small businesses. The Small Business & Entrepreneurship Council (SBE Council) strongly supports the Prove It Act, as it will enforce accountability during the regulatory process, and by extension provide a protective shield for small businesses against unwarranted and excessive regulation, along with the high costs that accompany these rules.

As you well know, inflationary pressures and economic uncertainty continue to batter our nation’s small businesses. In SBE Council’s latest “Small Business Check Up Survey Q3 2023,” small business owners continue to cite inflation, economic uncertainty/a slowdown, and high interest rates as their top issues of concern. Inflation is having a negative impact on 82% of the small businesses we surveyed, 52% say revenues have not kept pace with inflation, and 63% believe economic conditions will deteriorate for the remainder of 2023. Small business owners need relief, and policies that enable growth and address their pain points. The cost of new Biden-era regulations – pegged at $400 billion – on top of costly and long-standing regulations add to their financial pain, uncertainty, and ability to invest and compete. This regulatory blitz must end.

The Prove It Act forces federal agencies to show that they are complying with existing laws meant to protect small businesses, and requires an analysis of both the direct and indirect costs of these rules. Moreover, small business would be provided meaningful input regarding the effect of proposed rules. The voice and views of entrepreneurs are critical when it comes to regulatory policy, which is another key reason why SBE Council strongly supports this vital legislative initiative.

Please let SBE Council know how we can be helpful in advancing this common-sense bill. The Prove It Act needs to be supported by every member of Congress. Proof of their support for America’s small businesses will be made crystal clear through their support of the Prove It Act.

Thank you for your strong and steady leadership in promoting entrepreneurship and protecting small businesses.

Sincerely,

Karen Kerrigan, President & CEO