Prove It Act of 2025

Key Points

• Small businesses, groups of small businesses, or organizations representing them can petition the SBA's Chief Counsel for Advocacy to review an agency's claim that a proposed rule won't significantly harm small businesses. This creates a formal challenge process that didn't exist before.
• For the first time, agencies must analyze the indirect costs a proposed rule could impose on small businesses, not just the direct costs. This includes businesses that buy from, sell to, or otherwise do business with companies directly regulated by the rule.
• If the SBA's Chief Counsel finds that a rule really would significantly impact small businesses, the agency must go back and do a full regulatory flexibility analysis. If the agency refuses to cooperate with the review at all, the final rule cannot be enforced against small businesses.
• The bill creates a 'use it or lose it' policy for existing regulations. If an agency fails to review a rule within the required 10-year window, the rule automatically ceases to be effective. The agency can try to reinstate it, but only after taking public comments and completing its review within 180 days.
• All guidance documents related to rules that significantly impact small businesses must be published online and open for public comment. This ensures small business owners can find compliance instructions and share feedback.
• The bill does not authorize any new funding. All implementation must happen within existing budgets, which could limit how quickly and effectively the SBA and agencies can carry out these new review procedures.

Votes

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