SBA Launches Deregulation Strike Force Aimed at Cutting Costs for Small Businesses

The U.S. Small Business Administration announced Monday the creation of a new Deregulation Strike Force, a move the agency says is designed to rein in regulatory costs that have weighed heavily on small businesses in recent years.

The initiative, unveiled December 15, establishes a dedicated team within the SBA charged with identifying and eliminating federal regulations that disproportionately impact small firms. The effort is part of President Trump’s broader affordability agenda and will focus on rules enacted during the Biden Administration that the SBA says contributed to rising costs across the economy.

According to the agency, the strike force will be led by the SBA’s Office of Advocacy and will operate across the federal government, reviewing regulations that affect industries ranging from housing and healthcare to energy and transportation.

Regulatory Costs Under Review

SBA officials point to regulatory expansion as a significant driver of higher costs for small businesses and consumers. Citing estimates from the Committee to Unleash Prosperity, the agency said the Biden Administration imposed roughly $6 trillion in cumulative regulatory costs on American families and job creators. New reporting and compliance requirements added an estimated 356 hours of paperwork per business, while inflation climbed to levels not seen in four decades in 2024.

“Small businesses were crushed by a regulatory environment that piled on costs at a time when inflation was already squeezing margins,” SBA Administrator Kelly Loeffler said in a statement. “This strike force is about cutting senseless red tape and delivering real relief on Main Street.”

The SBA emphasized that it is the only cabinet-level agency with explicit authority to review and challenge regulations that burden small businesses. That authority stems from the Small Business Regulatory Enforcement Fairness Act and the Regulatory Flexibility Act, which empower the Office of Advocacy to intervene when federal rules are deemed costly, duplicative, or overly restrictive.

Focus on Key Industries

The Deregulation Strike Force will prioritize regulations affecting industries that have seen some of the sharpest cost increases in recent years. These include housing and construction, healthcare and medical services, agriculture and food production, energy and utilities, and transportation and logistics, along with other goods and services sectors.

As part of its mandate, the SBA will solicit direct feedback from small business owners to identify the regulations they view as most burdensome. That input will inform a government-wide review of Biden-era rules, with the stated goal of reducing compliance costs and encouraging new business formation.

A Broader Deregulatory Push

The SBA said the new strike force builds on prior deregulation efforts already underway. Since President Trump took office, the agency estimates it has helped eliminate $98.9 billion in federal regulatory costs. Actions cited include the rollback of the FinCEN Beneficial Ownership Rule, changes to energy efficiency standards, and the repeal of certain Green New Deal related requirements affecting diesel exhaust fluid.

Administration officials also noted that across the federal government, 48 existing regulations have been eliminated for every new regulation enacted, producing what they estimate to be nearly $200 billion in total regulatory savings.

For small businesses navigating higher labor, energy, and financing costs, the SBA framed the Deregulation Strike Force as a step toward restoring predictability and affordability. Whether the initiative delivers measurable relief will depend on how quickly regulations can be reviewed and repealed, but the agency signaled that deregulation will remain a central pillar of its economic strategy heading into 2026.

What This Means for Manufacturers and Industrial Suppliers

For manufacturers, the SBA’s Deregulation Strike Force signals a potential shift in the cost structure and operating environment that has shaped decision-making over the past several years. Regulatory requirements tied to environmental compliance, energy usage, reporting standards, and transportation have been especially consequential for small and mid-sized manufacturers, where compliance costs often consume disproportionate time and capital.

If the SBA succeeds in streamlining or eliminating duplicative rules, manufacturers could potentially see relief in areas that directly affect pricing, production planning, and capital investment. Reduced regulatory friction may also encourage companies to revisit expansion plans, invest in domestic capacity, or bring previously outsourced work back in-house, particularly in sectors such as construction materials, medical manufacturing, food processing, and energy-related equipment.

Suppliers and distributors stand to benefit as well. Regulatory costs are frequently embedded upstream, showing up in higher material prices, longer lead times, and narrower supplier pools. For purchasing managers and sourcing professionals, a more predictable regulatory environment could expand domestic sourcing options and make supplier comparisons more straightforward, especially as onshoring efforts continue to gain traction.

Supporting Domestic Supply Chains Through SBA Partnership

The launch of the Deregulation Strike Force also aligns with broader federal efforts to strengthen domestic supply chains. Notably, the SBA recently introduced a new onshoring portal designed to help businesses identify and connect with U.S.-based manufacturers and suppliers. IndustryNet is one of just three industrial marketplaces featured on the platform.

Through this partnership, businesses using the SBA’s onshoring portal are directly connected to IndustryNet, the online industrial marketplace featuring verified listings of more than 360,000 U.S. manufacturers and suppliers. The integration is intended to make it easier for buyers, sourcing teams, and government contractors to identify domestic production capabilities quickly. Learn more about IndustryNet here.