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NSBA applauds FinCEN for pausing these senseless penalties and continues urging Congress to act to repeal the Corporate Transparency Act (CTA). FOR IMMEDIATE RELEASE Friday, Feb. 28, 2025   Contact: Molly Day 202-552-2904 mday@NSBAadvocate.org   FinCEN Freezes Penalties on CTA Enforcement   Washington, D.C.  – Late yesterday, Thursday, Feb. 27, the Financial Crimes and Enforcement Network (FinCEN) announced they will not take any enforcement actions against companies that fail to file or update their Beneficial Ownership Information (BOI) reports per the Corporate Transparency Act (CTA).   The announcement from FinCEN reads:   “Today, FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines. No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed. This announcement continues Treasury’s commitment to reducing regulatory burden on businesses , as well as prioritizing under the Corporate Transparency Act reporting of BOI for those entities that pose the most significant law enforcement and national security risks.   No later than March 21, 2025, FinCEN intends to issue an interim final rule that extends BOI reporting deadlines, recognizing the need to provide new guidance and clarity as quickly as possible, while ensuring that BOI that is highly useful to important national security, intelligence, and law enforcement activities is reported.”   FinCEN also stated their intent to gather public comment on the potential revisions to BOI reporting. Although this latest movement in the CTA drama is a positive one, it is important to note that the law itself is flawed and FinCEN still must work within a framework that includes massive penalties and fines: up to $591 in fees per day and up to 2 years in prison for possible inadvertent mistakes in reporting.   Currently, ONLY NSBA members in good standing as of March 1, 2024 are exempt from this rule. However, NSBA continues to urge Congress to intervene and delay, and ultimately repeal the CTA.   “While we appreciate the restraint and understanding FinCEN appears to be showing about the massive burden BOI reporting poses for millions of small businesses, we urgently need Congress to intervene and pass legislation that doesn’t harm small businesses, and actually fixes the problem of money-laundering; both sides of the coin on which CTA is a complete failure,” stated NSBA President and CEO Todd McCracken.   NSBA filed the first lawsuit in the nation against the CTA and is currently awaiting judgement from the Eleventh Circuit Court of Appeals. Furthermore, NSBA is leading the fight against the CTA on Capitol Hill and is encouraging every small business in America to contact their lawmakers  and urge them to delay and repeal the CTA.   Click here for NSBA’s CTA Resource  page.   Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.   ###

NSBA urges Congress to continue prioritizing Small Business matters and bills this session. This week, NSBA followed a number of Small-Business related legislation gaining momentum in Congress, including seven bipartisan bills originating in the Small Business Committee. Voted positively out of the chamber this week, their passage under suspension tees up potential for legitimate consideration in the Senate.   Among the bills unanimously passed in the House this week: H.R. 825 – Assisting Small Businesses Not Fraudsters Act. A bill sponsored by House Small Business Committee Chairman Rep. Williams (R-Texas) to prohibit companies accused of financial crimes related to COVID-19 loans from receiving future assistance from SBA. H.R. 832 – Small Business Advocacy Improvements Act of 2025. A bill sponsored by Rep. Williams to e xpand the SBA’s Office of Advocacy to advocate for small businesses on international trade issues. H.R. 818 – SPUR Act. A bill sponsored by Rep. Stauber (R-Minn.-08) to e nhance requirements for SBA to evaluate the performance of federal agencies in awarding small businesses contracts. H.R. 788 – DOE and SBA Research Act. A bill sponsored by Rep. LaLota (R-N.Y.-01) to r equire SBA and the Department of Energy (DOE) to increase small business opportunities in DOE research. H.R. 754 – Investing in Main Street Act of 2025. A bill sponsored by Rep. Chu (D-Calif. 28) to a uthorize banking entities to increase investment amounts in small businesses. H.R. 804 – Rural Small Business Resilience Act. A bill sponsored by Rep. Morrison (D-Minn.-03 to e mpower the SBA’s Office of Disaster to ensure rural areas receive full access to disaster assistance. H.R. 828 – SERV Act. A bill sponsored by Rep. Davids (D-Kan.-03) to e nsure SBA reports on access to capital limitations faced by veteran small business owners. A number of these bills provide funds for larger banks and entities meant to be designated for and disbursed to Small-Business investment. While passage in the House is a start, ahead of more substantive consideration in the Senate, NSBA looks forward to continuing discussions with its members and the entire Small-Business community on how to maximize opportunities with legislative initiatives signed into law this Session. Follow NSBA as we continue monitoring progress of Small-Business related legislation in Congress. RELATED | NSBA Affirms Priority Issues for 119th Congress

SBTC Executive Director Jere Glover testifies before House on SBIR/STTR FEB. 26 | TODAY, NSBA's Small Business Technology Council (SBTC) Executive Director Jere Glover testified in a hearing before the House of Representatives' Committee on Small Business titled "Fostering American Innovation: Insights into SBIR and STTR Programs."  SBIR and STTR programs are set to expire on September 30, 2025, and must be reauthorized to avoid a statutory lapse in authority.  Both the House and Senate are moving to try to get bills passed before then using Regular Order.  This standard process for getting bills passed requires a hearing, followed by introduction of a draft bill, then a markup hearing for adding amendments, a vote in Committee, and a vote on the floor.  The hearing marks the first step in this process. With a new Congress underway and many new Members on the Committee unfamiliar with SBIR/STTR programs, Glover's testimony will serve as an introduction to the programs, their importance to high-tech small businesses, and the impacts they have on America's innovative economy.  Alongside the testimony, SBTC will offer recommendations to the Committee to strengthen and improve the programs. Watch the full hearing here .

Extension of critical tax provisions serving of the Small-Business community is an NSBA Priority Issue for the 119th Congress.   Yesterday, the House passed the NSBA-supported H.Con.Res.14 by a count of 217-215. This major vote represents the first, and best, opportunity for Congress to unlock the Budget Reconciliation process and allow for consideration of tax policy this year. There are a handful of critical small-business tax provisions, like 199A, the Qualified Business Income Deduction, that were passed as part of the Tax Cuts and Jobs Act (TCJA) of 2017, which will expire, if Congress fails to act this year.  RELATED | Tax Extenders Ratified as Priority Issue for Small Business this Congress  For years, NSBA has been warning policymakers about the challenges posed by various sunsetting laws and how those create additional hardships that fall squarely on the shoulders of small business. Today, that fear is front-and-center. The biggest tax relief provisions afforded to small business in the TCJA are set to expire at the end of 2025, giving Congress limited time to extend those cuts for small businesses. Unfortunately, the original law made permanent only those tax cuts that were for the largest companies in the U.S. – leaving small business in today’s tenuous position.     “Given that the majority of small-business owners pay business taxes at the personal income level—83 percent are pass-through entities—it’s no wonder small businesses are very concerned about potential and significant tax hikes if Congress fails to address the expiring tax cuts,” NSBA President and CEO Todd McCracken said following passage of the budget blueprint. “I urge lawmakers of every stripe to seek solutions to ensure that small businesses are afforded tax stability, predictability, and permanency, not to mention parity with larger businesses.”    Earlier today, NSBA released its 2025 Small Business Taxation Survey, which shows the significant impact federal taxes have on America’s smallest businesses. The major take-away: expiration of the TCJA tax cuts will be a significant issue for the overwhelming majority of small businesses.    Click here  to view the survey.    NSBA was cited in House Budget Committee materials in the lead up to the vote, see here .

NSBA Survey data shows complexity and uncertainty in the tax code are big problems for Small-Business owners - and an even bigger concern for the country's economy. FOR IMMEDIATE RELEASE Feb. 26, 2025   Contact: Molly Day 202-552-2904 mday@NSBAadvocate.org   New Survey on Taxes and Small Business: Complexity is Major Problem   Washington, D.C.  – NSBA released today the 2025 Small Business Taxation Survey, which shows the significant impact federal taxes have on America’s smallest businesses. The major take-away: expiration of the 2017 Tax Cuts and Jobs Act tax cuts will be a significant issue for the overwhelming majority of small businesses.   “Given that the majority of small-business owners pay business taxes at the personal income level—83 percent are pass-through entities—it’s no wonder small businesses are very concerned about potential and significant tax hikes if Congress fails to address the expiring tax cuts,” stated NSBA President and CEO Todd McCracken.   Among some of the key findings of the survey: The majority of small-business owners spend more than 20 hours per year dealing with federal taxes, even though the vast majority pay an external tax practitioner to handle their taxes. Ninety percent of small-business owners say federal taxes have some impact on the day-to-day operations of their businesses, one-in-three cite a significant impact. Among the small businesses that directly outsource goods from outside the U.S., the vast majority identified China as a country they purchase from. More than half of small-business owners say that finding needed information directly from the IRS is difficult. By far, the largest burden facing small businesses when it comes to federal taxes: administration and complexity, NOT the financial cost.   For years, NSBA has been warning policymakers about the challenges posed by various sunsetting laws and how those create additional hardships that fall squarely on the shoulders of small business. Today, that fear is front-and-center as Congress must address the expiration of various small-business tax cuts including the 199A Qualified Business Income Deduction—top priorities as voted on at NSBA’s recent Small Business Congress. RELATED | America's Small-Business Owners Ratify Priority Issues for Policy Pursuit at NSBA's SBC 2025   “As Congress embarks on any tax extender or tax reform discussion, it is imperative that small businesses are afforded tax stability, predictability, and permanency, not to mention parity with larger businesses,” stated NSBA Board Chair Michael Canty, of Alloy Precision Technologies in Cleveland, Ohio.   Click here  to download the full survey.   Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz  or follow us at @NSBAAdvocate.   ###

Continued changes in Corporate Transparency Act (CTA) status for beneficial ownership information (BOI) reporting requirements is a Small-Business burden that must be resolved immediately. FOR IMMEDIATE RELEASE   Thursday, Jan. 23, 2025    Contact Molly Day  | 202-552-2904 mday@NSBAadvocate.org     Washington, D.C.  – Late Tuesday, Feb. 18, 2025, a District Judge in Texas lifted the temporary injunction barring the Financial Crimes and Enforcement Network (FinCEN) from enforcing Beneficial Ownership Information (BOI) reporting. This is the latest in a long line of court decisions leaving small-business owners in the lurch with no certainty on whether or not they must file their their BOI reports.     This latest—now overturned—injunction was from the U.S. District Court for Eastern Texas in Smith v. U.S. Department of the Treasury . This was one of several other lawsuits that followed NSBA’s suit and is making its way through the courts. No decision has yet been made in NSBA’s case which resides in the Eleventh Circuit Court of Appeals.    FinCEN recently published guidance  stating they are moving the BOI reporting deadline to March 21, and even alluded to ongoing adjustments to that deadline, stating: “Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.”   NSBA is strongly urging flexibility and ample time be provided to small businesses given the constant back-and-forth they have been dealing with regarding the Corporate Transparency Act (CTA), not to mention the fact that the House handily passed legislation  to delay by one year the CTA.    Below is a statement from NSBA President and CEO Todd McCracken.    “This latest court action creates even more uncertainty for our members and the millions of small businesses we represent. This burdensome rule could result in well-intending, but justifiably confused, small businesses facing fines up to $591 per DAY and up to two years of jail time.    “And while any member of NSBA as of March 1, 2024 is exempt from this rule, NSBA cannot stand by and let this unfair burden ensnare countless other small businesses.    “I cannot stress enough what a major problem this back-and-forth and the massive uncertainty it creates is for the millions of small businesses across this country. Thankfully, the House voted to approve legislation that would delay the CTA and BOI reporting for one year—now we desperately need the Senate to act.    “NSBA filed the first lawsuit in the nation against the CTA, and we will continue to pursue every legal avenue to overturn this unconstitutional rule. We will push for Congress to do the right thing and see the CTA for what it truly is: a burden of uncertainty and confusion that will do very little to actually stop money laundering.”    Click here for NSBA’s CTA Resource  page.    Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsbaadvocate.org  or follow us at @NSBAAdvocate.

More than 150 Small-Business owners came together to learn about, discuss, and ratify NSBA's Priority Issues through the 119th Congress. FOR IMMEDIATE RELEASE Friday, Feb. 7, 2025   Contact Molly Day 202-552-2904 press@nsba.biz Small Business Votes Extending Expiring Tax Provisions #1 Priority   Washington, D.C.  – The National Small Business Association (NSBA) has unveiled its Top Priorities for the 119th Congress, a result of its biennial Small Business Congress, held Feb. 6-7 in Washington, D.C. Small businesses selected extending the expiring Tax Cuts and Jobs Act (TCJA) tax provisions, improving small-business contracting, repealing the Corporate Transparency Act and improving access to capital among the top priorities for Congress and the administration to address in the coming two years.   “The overwhelming majority of small businesses are pass-throughs, paying business taxes at the individual income level which will leave millions facing major tax hikes in 2026 unless Congress extends the myriad tax breaks that were passed under the 2017 Tax Cuts and Jobs Act.,” stated Todd McCracken NSBA president and CEO. “Our members also continue to tell us what a major headache the ever-changing landscape of the CTA is—they need Congress to intervene and put this bad policy to bed for once and for all.”   NSBA’s Top Priorities for the 119th Congress are:   1.       Extend Expiring Tax Provisions 2.       Extend 199A Pass-Through Deduction 3.       Rein in the Costs of Health Care 4.       Repeal the Corporate Transparency Act 5.       Improve Access to Capital 6.       Strengthen SBA Office of Advocacy 7.       Eliminate the Self Employment Tax on Health Care 8.       Support Robust Small Business Contracting 9.       Strengthen Federal Innovation Programs 10. Strengthen SBA Lending   “At NSBA, through the Small Business Congress, we set the agenda, not special interest groups, not political parties, not corporate interests – small businesses set our agenda,” stated NSBA Chair Michael Canty, of Alloy Precision Technologies in Cleveland, Ohio. “This consensus agenda is a testament to the pragmatism and thoughtfulness of our members, a diverse group of small-business owners from every state and industry in the nation who work in a bipartisan fashion to get things done.”   Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsbaadvocate.org  or follow us at @NSBAAdvocate. ###

A fully staffed Small Business Administration (SBA) is a nonnegotiable for NSBA's members and America's most important economic community. NSBA applauds today’s confirmation of former Georgia Senator Kelly Loeffler as Administrator of the SBA. On behalf of our 65,000 members, we are excited to welcome Administrator Loeffler back to Washington at a critical time for America’s small business economy. Loeffler brings deep expertise in business and finance, as well as valuable Capitol Hill knowledge, both of which will help ensure the SBA runs efficiently and effectively.   As the oldest small-business advocacy organization in the country—predating even the SBA itself—NSBA has seen firsthand the impact and importance of a thriving and fully-staffed SBA. Among its many responsibilities, this critical agency helps ensure small companies have a seat at the table in the regulatory process, and is often the lender of last resort when businesses most need financing. SBA has done a tremendous job in leveraging the private sector to ensure innovation and entrepreneurship can flourish, and we are confident that will continue under Administrator Loeffler.   NSBA and our members look forward to continuing our longstanding strong relationship with the SBA as it seeks to hear directly from main street small businesses on what they need. With nearly 90 years of experience, NSBA stands ready to be a great resource for Administrator Loeffler as she begins her tenure as America’s top small-business champion.

As cyber threats escalate, businesses face significant risks of security breaches and financial losses. Cyber insurance offers a safety net, providing financial protection and support during cyber incidents. This article from WeLiveSecurity explains that while cyber insurance isn't a replacement for strong cybersecurity practices, it complements them by covering costs like pre-breach assessments, post-breach notifications, forensic investigations, legal services, and crisis management. Policies typically include first-party coverage for direct business impacts and third-party coverage for claims from affected parties. However, coverage for cyberattacks deemed "acts of war" may be excluded. With the rise of hybrid work environments and digital investments, the need for cyber insurance is more critical than ever.

Comprehensive AI policy comes down to common sense, and that includes prioritizing Small Business realities in crafting an effective rules, laws, and regulations. FEB. 17 | This week, NSBA sent a letter to the House Bipartisan Task Force on Artificial Intelligence (AI) outlining recommendations for lawmakers to consider in creating a framework for AI regulation. As businesses increasingly adopt AI, small-business owners have demonstrated concerns that pertain to compliance, even in the absence of a federal legislative framework for AI regulation. Many small-business owners have expressed concern that technology regulations could harm their businesses and reported that their businesses would face challenges complying with existing proposed AI regulations at the state level. Moreover, in its December 2024 report, the House task force found that small businesses may not only lack sufficient access to capital and AI resources, but also that they may lack a full understanding of how to best adopt AI systems. Accordingly, NSBA recommends lawmakers, led by the task force, create a framework for regulating AI that considers barriers small businesses may face in adopting AI, including but not limited to knowledge barriers, concerns over legal and compliance issues as well as costs, and shortfalls in employee training for an increasing digital economy. Read our full letter here , and follow NSBA as we continue tracking this important matter and its evolution in Congress, including developments on AI policy taking shape in both the House and Senate.

NSBA urges Congress to ensure that Small Businesses aren’t left on the hook for a massive tax hike in the budget resolution bill or any legislation passed in the 119th Session. Ahead of a self-imposed deadline of Thurs., Feb. 13, House Speaker Mike Johnson (R-La.) announced draft text of a budget resolution in “one big, beautiful bill.” Working quickly to avoid potential for inner-party dissension or collapse on consensus of proceeding with one budget bill or two, Republican leaders are working quickly to pass the resolution by a means of reconciliation – a procedural tool frequently used by slim-majority parties in Congress to minimize the need to negotiate with minority Members. Lowering the vote threshold for passage to a simple majority, the resolution text sets new budget numbers that reconcile federal spending with policy of the new administration. Still in early draft form, the bill is a package of respective parts – one for of each of the congressional committees, text from which was written to increase or reduce its numbers relative to the federal deficit. Although these numbers are not direct spending amounts, Chairman Jodey Arrington (R-Tex.) and the House Budget Committee is reportedly set to hold a markup on the resolution on the day of the Feb. 13 deadline, with GOP leadership aiming to bring the bill to the House Floor for full vote shortly thereafter. RELATED | NSBA Announces Priority Issues for the 119th Congress - Tax Cuts A Top Concern In addition to provisions for a $4 trillion debt limit increase, the following are the adjustments in numbers for each committee in the current resolution text. 1. Ag -$230B 2. Edu./Workforce -$330B 3. Energy & Commerce -$880B 4. Financial Services -$1B 5. Natural Resources -$1B 6. Oversight -$50B 7. Transportation -$10B 8. Ways & Means +$4.5T 9. Homeland +$90B 10. Judiciary +$110B 11. Armed Services +$100B Coming in at a $4.5 trillion, Way and Means is currently carrying the highest price tag; however, this cost increase is due largely to a number of tax provision extensions, including several supporting the Small-Business community. Read the statement from NSBA President and CEO Todd McCracken below, supporting Congress’ commitments to compromise for passing a resolution that keeps the government funded and open, as well as the full bill text here : “We’re grateful to Chairman Arrington and House Leadership for their work on the recently unveiled Budget Resolution. This bill is a vital first step toward extension of critical tax provisions, like Section 199A, that main streets across America depend on. Without the extension of these provisions alongside the TCJA individual rate reductions, beginning at the end of this year, small companies operating as passthroughs will face a “one-two punch,” paying a higher percentage in tax on a higher proportion of their earnings. Small Businesses represent over 99 percent of all companies in the U.S. and employ nearly half of all private sector workers, yet are uniquely vulnerable to shifting tax burdens that threaten their survival. We urge Congress to ensure that Small Businesses aren’t left on the hook for a massive tax hike.”

NSBA prioritizes policies that encourage robust small-business contract participation in the federal marketplace, a priority that is well-served by SBA's proposed rule. On Feb. 17, NSBA submitted comments expressing support for a Small Business Administration (SBA) proposed rule “to encourage faster payments to small business subcontractors and streamline the reporting process for prime contracts.” NSBA prioritizes policies that encourage robust small-business participation in the federal marketplace, a priority that is well-served by SBA's proposed rule. Robust small-business participation necessarily includes timely payments to small-business subcontractors from prime contractors and holding prime contractors accountable when they fail to make timely payments. For most small businesses, which inherently possess less operating capital to function, timely payments are essential to continuous operation and contractual fulfillment. By requiring prime contractors to notify a contracting officer in writing when they fail to make full or timely payments to a subcontractor within 30 days past the payment due date, the proposed rule takes a critical step in the right direction, in turn creating an environment of accountability that benefits small business subcontractors.