Small business carries big clout

COEUR d'ALENE - They make up 99.7 percent of all employers, and created 60 percent to 80 percent of new jobs in the past decade. They produce more than half of the nation's nonfarm gross domestic product and nearly 29 percent of exports.

Their value is frequently underestimated and individually they have little power when faced with regulatory burdens imposed by multiple layers of government. For them, the federal government's smallest agency provides a strong voice and plenty of political clout.

It is the U.S. Small Business Administration's national ombudsman.

"Our primary mission is to assist small businesses when they experience excessive or unfair federal regulatory enforcement actions," said Esther Vassar, national ombudsman and assistant administrator for regulatory enforcement fairness for the SBA.

After two days of visiting a variety of businesses and organizations in North Idaho and Spokane, she addressed a group at the Idaho Economic Association at their Spring Conference at The Coeur d'Alene Resort on Thursday.

Small business struggles to grow, not just survive, Vassar said. Some regulations are important, such as those protecting water and safety, but in some cases they become burdensome, she said.

When that happens, the ombudsman can step in and rate the offending agency with an A to F grade.

"No agency wants a bad grade from the little office of the ombudsman," Vassar said. "If they get a bad grade, they know why."

Her outreach to the Northwest was the seventh in the 10 SBA districts.

"No small business should struggle because it is unaware of our office," she said.

Even the often-intimidating IRS has a relationship with the ombudsman, and problems can be prevented with a little communication.

"Sometimes small businesses just don't understand what is required of them," Vassar said.

Changing regulations can also create problems.

"A small business owner often does not have the time to go to their Web sites," she said. "They don't know they are not in compliance until they get fined."

That often leads to a mistrust of federal agencies, and few expect them to be responsive.

"You have in the office of the ombudsman somebody that will get a response for you," Vassar said.

Steve Griffitts, president of Jobs Plus, noted the frustration faced in dealing with the U.S. Environmental Protection Agency.

"When you talk to the EPA, we are guilty until proven innocent," Griffitts said.

Vassar said her office would be a good starting point in dealing with the EPA.

"Agencies never get to see what I see," she said. "We bring humanity to the process."

The Small Business Regulatory Enforcement Fairness Act of 1996 authorized the SBA Ombudsman's office to:

• Conduct hearings in each of SBA's 10 regions to provide small businesses with public forums where they can voice their comments about Federal regulatory and compliance enforcement actions without fear of retaliation.

• Work with Federal agencies that have regulatory authority over small businesses, encouraging regulators to pay attention to entrepreneurs' comments about enforcement activities and address those concerns promptly.

• Establish a process for the ombudsman to receive comments from small businesses about unfair Federal compliance or enforcement activities. The ombudsman also refers these comments to the Inspector General of the affected agency in appropriate circumstances. Upon request, the office will maintain the anonymity of the person and/or small business filing such comments.

• File an annual report with Congress and affected federal agencies in which the ombudsman rates Federal agencies based on substantiated comments received from the small businesses and input from the RegFair Boards.

• Provide the affected agencies with an opportunity to comment on the draft version of the annual report to Congress.

Information: http://www.sba.gov/aboutsba/sbaprograms/ombudsman/index.html, or (202) 205-2417