The SBA lays out a detailed rationale to support its opposition to the FAA proposal. For starters, the FAA does not adequately explain any reason that it needs a new rule, or cite any data to show how the changes would improve safety, the SBA said. Also, the FAA’s basis for estimating the impact of the rule is inadequate, the SBA said, because there is no clear means to quantify the number of Part 91 operators who would be affected. The actual incidence of small operators forced out of business is likely to be in the thousands, the SBA said, not the 700 “marginal” businesses estimated by the FAA. Also, the SBA is skeptical of FAA claims that small operators wouldn’t see any change in their insurance costs. Further, the six-month grace period would probably not be adequate to certify operators without causing a backlog and downtime, costing them even more money, the SBA said.
…Thousands Of Small Businesses Would Be Hurt…
Key Takeaways:
- The Small Business Administration (SBA) opposes the FAA's proposed rule, citing a lack of clear justification, data supporting safety improvements, and an inadequate explanation for its necessity.
- The SBA criticizes the FAA's underestimation of the rule's impact, projecting thousands of small operators, rather than 700, could be forced out of business.
- The SBA disputes FAA claims about stable insurance costs for small operators and deems the proposed six-month grace period insufficient, likely causing backlogs and financial losses.
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