If small business has a champion, Jere W. Glover is it. The
SBA's chief counsel for advocacy since May 1994, Glover roams
the federal bureaucracy like a free safety in football, looking for
regulatory actions that pose potential problems for small business.
His territory includes Congress, where he frequently testifies as
the voice of the "little guy," who may or may not be
represented by any of the small-business trade associations whose
representatives tread the halls of the Capitol.
That role was never more evident than last year, when Glover was
a lone voice speaking on behalf of entrepreneurs who would have
been hurt by a now-defunct bankruptcy bill supported by all the
major small-business groups. Here, we speak with Glover about what
1999 has in store for small business:
Entrepreneur:Will the IRS reform bill Congress passed
last year have much of an impact on small businesses in
1999?
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Jere W. Glover: The new IRS commissioner [Charles O.
Rossotti] is restructuring the IRS so that in each office, there
will be agents who do nothing but work with small businesses. Also,
the new IRS law establishes a taxpayer advocate. In the past, there
was really nothing you could do to fight the IRS, short of spending
$50,000 in tax court. That's not an option for most small
businesses.
Entrepreneur:The Small Business Regulatory
Enforcement Fairness Act (SBREFA) was thought to be a big deal when
it passed in 1996. Do you think the bill has lived up to its
promise?
Glover: SBREFA was a watershed change. It played a role
in Northwest Mining Association v. Babbitt. In that case, which was
decided last year, a federal district court in Washington, DC,
agreed with small mining companies and my office that the
Department of Interior's Bureau of Land Management had used
improper size standards in defining small businesses and therefore
had underestimated the effect of its rule on small business.
Because of SBREFA, agencies like the EPA and OSHA are talking with
small businesses well before the stage at which a rule is proposed.
The court throwing out regulations is the ultimate proof
there's been a change.
Entrepreneur:What about the legislative debate over
whether there should be federal requirements
on managed-care health plans? Many small-business groups argue that
federal mandates would increase their health-insurance
premiums.
Glover: Perhaps some of the legislation we see goes too
far. But knee-jerk opposition to some of the basic patient rights
principles is wrong, too. Patients' rights are important; the
right to file lawsuits may be less important, and that's where
the cost is really driven up. Making an HMO give you a second
opinion is not that costly. But I think you'll see a lot of
small-business people whose employees or families have been abused
by an HMO thinking we need to do more than we have done [to help
patients who are also employees of small businesses].
Entrepreneur:Are there some emerging regulatory or
legislative issues that entrepreneurs should pay close attention
to?
Glover: Mergers are going to be an ongoing concern. One
of the things we think is happening is that the firms that
can't get equity capital to grow their businesses are selling
out. And they're selling out at much smaller sizes, 10 and 15
employees, than anybody ever thought, which means fewer small
businesses.
Also, now that federal regulatory agencies are more sensitive to
small-business concerns, we need to work with state and local
regulatory agencies. The states need to become more flexible in
their regulatory approaches and enforcement activities. I will tell
you we're beginning that effort, but I won't tell you
we've made any real inroads yet. We're looking for models
of excellence in the states, and we plan to award innovative
programs at our state conference [to be held December 1998].
Stephen Barlas is a freelance business reporter who covers
the Washington beat for 15 magazines.
Contact Source
Small Business Administration, (202) 205-6533, fax:
(202) 205-6928