Sponsor
Nydia M. Velázquez
Representative · D-NY
Representative · D-NY
The bill improves transparency and stakeholder input in SBA rulemaking—benefiting small businesses and contractors—but may slow rule issuance and raise administrative costs, affecting businesses' access to programs and taxpayers' costs.
Small-business owners will get public notice and a chance to comment before the SBA finalizes rules affecting loans, grants, contracts, or benefits, giving them more ability to influence outcomes and prepare for changes.
Increased transparency and public input is likely to improve rule quality and reduce arbitrary or unexpected changes for program applicants and government contractors.
Small businesses could experience slower access to updated loan, grant, or contract terms because full notice-and-comment procedures may delay SBA rule issuance.
Additional procedural burdens on the SBA could increase administrative costs or reduce program responsiveness, potentially shifting costs to taxpayers or making services less efficient.
Based on analysis of 2 sections of legislative text.
Requires SBA rulemakings on public property, loans, grants, benefits, or contracts to follow APA notice-and-comment procedures.
Official title: To clarify the applicability of certain provisions of the Administrative Procedures Act to certain actions of the Small Business Administration, and for other purposes.
Introduced July 22, 2026 by Nydia M. Velázquez · Last progress July 22, 2026
Makes the Administrative Procedure Act's notice-and-comment rulemaking requirements apply to Small Business Administration rules involving public property, loans, grants, benefits, or contracts by removing the SBA's exemption from 5 U.S.C. § 553(a)(2). In practice, the bill requires the SBA to publish proposed rules, accept public comment, and publish final rules for those covered rulemakings.