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Under the Corporate Transparency Act, the federal government is mandating small business owners to undergo a duplicative and burdensome paperwork process - punishing small businesses at a time when every dollar, employee and lost hour counts. Watch and learn more from NSBA President and CEO Todd McCracken on NSBA's efforts to protect small business from the harmful effects of this ill-equipped policy.

Comments are due Dec. 7. The National Labor Relations Board (NLRB) has proposed a new set of regulations that could have a significant impact on millions of small businesses and the tens of millions of workers they employ. NSBA believes that these rules--should they be enacted--would have a chilling effect on smaller businesses’ ability win contracts with larger firms for a range of services. The rule also would significantly impact the ability of franchise owners to operate effectively. Essentially, the NLRB proposal would make larger companies and franchisors responsible and liable for the employment practices of their franchisees, suppliers, vendors, contractors, and subcontractors. Currently, businesses are only deemed to be “joint employers” if they exercise “direct and immediate control” over the essential terms and conditions of employment for the same group of employees. The NLRB, however, wants to greatly expand that definition so that even the potential for such control will flip the joint-employer switch. The changes proposed by NLRB would cause many larger companies to scale back their work with small businesses. Under this proposed rule, businesses will be forced to protect themselves against significantly more liability and obligations under the law. These proposed rules would cause larger companies to bring much small-business work “in-house” rather than work with individually owned small companies. Ultimately, there will be fewer start-ups, lost innovation, higher costs, and a less vibrant entrepreneurial economy. We need your help. Please help us send the message that this new joint-employer standard would devastate the small-business economy. Tell the NLRB to reverse course and protect small businesses. Comments are due Dec. 7!

Raise your hand for Small Business! Join NSBA for our 2023 Small Business Congress, this February 7-8 at the Hotel Washington in the heart of downtown D.C. During the SBC sessions, you will hear directly from lawmakers on their small-business priorities, where we’ll discuss and debate key issues affecting small business, talk with policy experts and political insiders on what to expect in the coming months, and all participants will vote on NSBA’s priorities for the coming two years. Leading up to this year’s SBC – returning in-person for the first time since the 116th session of Congress – NSBA’s Leadership Council and Board of trustees will begin the process of gathering insight synthesizing input on the biggest issues facing small business today. Small business may get knocked down, but, after more than two long years of COVID chokepoints, some bad policy making its way from the congressional floor to the factory floor, we’re making our way back. Getting organized and developing a consensus small-business agenda is critically important—if you’re not at the table, you’re on the menu. The event kicks off at 9:30 a.m. on Tuesday, Feb. 7 with a welcome ceremony and then the delegation will hear from policy experts on the biggest issues facing small business in our four issue categories: Economic Development, Environment and Regulatory Affairs, Health and Human Resources, and Taxation. You’ll hear from thought leaders on the biggest issues likely to be making their way through Congress in the 118th Session and will also get a briefing on the state of small business in the U.S. today. Small Business Congress will close just before noon on Wednesday, Feb. 8 after the delegation votes on NSBA’s priority issues. NSBA’s 85+ years of improving the small-business climate would be nothing without its members. Our work together to shape small-business policy priorities, and our effort to educate and connect with Congress on the realities of running a small business is critically important, especially in today’s politically divided world. Read more about 2023’s SBC here.

DOL Independent Contractor Rule Update The comment period is coming to a close for a proposed rule from the U.S. Department of Labor (DOL) that would adjust how employers determine whether a worker is an employee or a contractor. The proposal would largely roll-back a similar rule-making that occurred during Trump Administration. As background, the proposal requires a multi-factor economic realities test that considers factors of the working relationship to determine whether the worker is truly in business for themselves. The proposed changes would be a return to a “totality-of-the-circumstances” analysis, according to the proposal, evaluating all of the factors involved in the working relationship equally. The rulemaking also would rescind a Trump-era rule that outlined a similar multi-factor test, but that gave greater weight to how much control workers have over their job duties and their opportunities for profit or loss when determining whether a worker is an employee or an independent contractor. Click here for more details. The proposed regulation was officially published in the Federal Register on Oct. 13, and comments are due Dec. 13. NSBA is drafting comments which will be shared with members to help facilitate broader comment submissions. Stay tuned. Please click here to read the proposal.

New funds will be distributed from SBA to those hardest-hit by COVID in the restaurant industry. Last week, the U.S. Small Business Administration (SBA) announced plans to distribute additional funds---approximately $83 million from the Restaurant Revitalization Fund (RRF). As of the announcement, a reported 169 restaurant operators were waiting for distributions from the RRF – a program established as a means of supporting service industry establishments during the uncertainty and mandated closures at the height of COVID. Associations and groups, like and including NSBA, worked with the SBA to secure dedicated federal pandemic relief dollars for a variety of small businesses and these additional RRF distributions will provide much-needed relief for many restaurants still struggling to return to pre-COVID profit levels. According to an independent audit done over the summer, SBA had more than $180 million of unobligated RRF money without an immediate plan for distribution to the needy applicants. SBA has since said it would work with the Department of Justice (DOJ) to distribute the remaining RRF dollars, later updating its plans to clarify that no further applications would be needed for the funds now to be paid out on a “first-applied, first-serve basis.” The independent summer audit’s findings have also since been revised to the $83 million amount the SBA spoke to ahead of the Thanksgiving holiday. According to the SBA, RRF grants will be distributed beginning this week, which restaurant operators must spend before March 2023. For more information on the RRF program, visit SBA.gov and read its revised guide here.

FOR IMMEDIATE RELEASE Nov. 15, 2022 Contact | Molly Day 202-552-2904 press@nsba.biz Jim Tobin 202-302-8123 jtobin@nsba.biz NSBA Files Lawsuit Challenging Burdensome Federal Small Business Mandate WASHINGTON, D.C. – The National Small Business Association (NSBA) today announced the filing of a constitutional challenge to the Corporate Transparency Act of 2019 (CTA)—also known as “Beneficial Ownership” rules. Under the CTA, the federal government is mandating small business owners to undergo a duplicative and burdensome paperwork process - punishing small businesses at a time when every dollar, employee and lost hour counts. NSBA filed suit this morning in U.S. District Court for the Northern District of Alabama, alleging: the CTA infringes on the States’ inherent and sovereign powers over the formation and governance of entities; does not regulate commerce under Congress’ power to do so; infringes upon an individual’s rights to apply for, form, own, and provide for the self-governance of entities under State law; and much more. “The CTA is a poorly thought out and heavy-handed federal mandate that will be a bureaucratic nightmare for small-business owners,” said NSBA President and CEO Todd McCracken. “If implemented, small businesses will be forced to spend millions of hours and billions of dollars on paperwork instead of creating jobs and helping grow our economy.” Under the CTA, the federal government is creating a national registry that would require small-businesses owners to submit detailed personal information. Existing rules—the Customer Due Diligence framework—currently require banks to collect information to provide ownership verification. These financial institutions also are required to monitor and report suspicious activities to FinCEN and law enforcement. “The CTA is simply passing the buck from big banks—which have legions of staff to absorb this kind of reporting requirement—to small businesses like mine,” stated NSBA Chair Mike Stanek from Berea, Ohio. “A simple mistake has the potential to land a small-business owner in jail for as long as two years.” NSBA is seeking to overturn the CTA’s unconstitutional national mandate and an immediate injunction of the implementation of FinCEN’s rule, to protect small-business owners while the litigation moves forward. Please click here to learn more. 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., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz or @NSBAAdvocate. #### Join us for a Todd Talk discussion on NSBA's CTA-related efforts Nov. 29 at 3:00 p.m. EST.

From boots to business, NSBA is ready to support opportunities for all our servicemen and women. ­­­ With midterms this week, NSBA remembers the reason for this election season and is proud to recognize all veteran-run small businesses for their unique contribution during Small Business Veterans Week and throughout the year. There are over 1.76 million veteran-owned businesses in­­ the U.S., and these businesses employ an estimated 4 million people. In an effort to help maximize resources of the Department of Veterans Affairs (VA), recently, SBA Administrator Isabel Guzman announced the launch of SBA’s Veteran Small Business Certification, with plans to provide a one-year extension to firms verified under the Program. Guzman said she envisions this certification to teach the “gold standard” in customer experience and provide a means of support for growing the nation’s base of veteran federal contractors, enabling better service to veteran small-business owners in their pursuit of federal procurement opportunities. For some context, NSBA Board Member and Army Veteran Bill Belknap shared the following perspective on his experience as a Veteran small-business owner: “As a Veteran of 20 years in the Army, I can vouch for the substantial benefits to being certified by the VA (and in the future, SBA) that have propelled the growth of my SDVOSB General Contracting Company. My company, AEONRG LLC started with utilizing my training and experiences I received in the military. In the last 10 years, AEONRG LLC has increased its contract award amounts 5x since first year of inception, received over 180 government contracts and facilitated the company stability recurring revenue from our prized federal government agency customers.” SBA’s Veteran Small Business Program will officially launch this January, open for new applications at that time, and the Program will become the primary vehicle for handling certification for veteran-owned small businesses (VOBs), as well as service-disabled veteran-owned small businesses (SDVOSBs). Moving away from other agencies and federal offices providing certification processes, VOSB and SDVOSB designations awarded under the SBA will be important classifications required to enable businesses to qualify for sole-source and set-aside federal contracting awards started by other federal Veterans’ programs. Specifics of the Certification Program under the SBA are listed below. The certification period will extend to four years on a one-time basis for firms verified by VA as of Jan. 1, 2023 Updates in the new program will include: Firms verified by the VA Center for Verification and Evaluation (CVE) as of Jan. 1, 2023, will be automatically granted certification by SBA for the remainder of the firm’s eligibility period. All firms verified by the VA as of the Jan. 1, 2023, transfer date will receive a one-year extension to their eligibility giving veterans an extra year to get recertified under the new SBA system. The extension will allow SBA to process applications from new entrants into the program and grow the base of certified firms. New applicants certified by SBA after Jan. 1, 2023, will receive the standard three-year certification period. Along with the recertification extension, the 2021 National Defense Authorization Act grants a one-year grace period for self-certified SDVOSBs until Jan. 1, 2024. During the grace period, businesses have one year to file an application for SDVOSB certification and may continue to rely on their self-certification to compete for non-VA SDVOSB set-asides. Self-certified SDVOSBs that apply before the expiration of the one-year grace period will maintain eligibility until the SBA makes a final eligibility decision. Beginning Jan. 1, 2024, both veteran and service-disabled veteran small business owners will need to be certified to compete for federal contracting set-asides, unless an application from a self-certified firm is pending an SBA decision. For the latest information on the Veteran Small Business Certification program, visit here, or email cvetransfer@sba.gov. About the Center for Verification and Evaluation Transfer This shift is a result of language in the National Defense Authorization Act of 2021 that officially requested that the Department of Veterans Affairs Center for Verification and Evaluation, transfer to the SBA, effective Jan. 1, 2023.

Thanks to our membership and leadership, NSBA’s efforts for small business are stronger than ever. This week, NSBA Trustees came together in Washington for our November Board and Annual Member Meetings. Among the several agenda items discussed, Trustees and NSBA staff are continuing to prioritize a number of initiatives, including efforts to combat the cumbersome effects of the Corporate Transparency Act, as well as means of better serving our members and growing our reach through strategic relationships, initiatives, and programming. Additionally, the Board nominated and voted on the organization’s leadership for the coming year. For more information on our Trustees, visit our website, and follow NSBA for updates on new Board leaders and insights for our current and growing membership.

Recognizing members and Members of Congress' efforts to secure reauthorization for SBIR/STTR, NSBA's Small Business Technology Council hosted its annual meeting this week in Washington. On November 14, The Small Business Technology Council (SBTC) hosted an in-person meeting for SBTC members on at our office building in Washington DC. In attendance were Hill staffers, government officials, and policymakers to speak to our members about current issues facing high-tech small businesses, particularly the recent SBIR reauthorization effort. In addition, SBTC presented SBTC’s Guidebook the changes to the law made by the SBIR/STTR Extension Act of 2022, and what small businesses need to know moving forward to be in compliance with the new law. SBTC also used the opportunity to honor some of those in government whose hard work and dedication were critical to getting SBIR reauthorization passed in Congress before SBIR authority expired. A lapse in the program would have been catastrophic for high-tech small businesses in America, and would have resulted in agencies beginning to wind down their SBIR offices. This was arguably the most difficult reauthorization in SBIR’s 40-year history, and it simply would not have gotten done were it not for the diligence and advocacy of those in government who understood how important the program is. Rep. Nydia Velazquez (D-NY) was amongst those who showed up to accept her award, and afterward offered remarks and answered a few questions from members. NSBA President Todd McCracken and SBTC Executive Director Jere Glover Present House Small Business Committee Chair Nydia Velazquez (D-NY) with a 2022 Milton Stewart Award. To see a full list of award winners, click on the link below: SBTC 2022 SBIR Reauthorization Award Winners SBTC 2022 Membership Meeting Agenda Moderated by SBTC Chair Jere Glover 2:00pm – Intros, Discussion of SBIR changes and guidebook 3:00pm – Panel #1: Administration Officials Farooq Mitha – Director, DOD Office of Small Business Programs Bob Smith – Director, Navy SBIR/STTR Programs Bailey Devries – Associate Administrator, SBA Office of Innovation Erick Page-Littleford – SBA SBIR/STTR Program Manager 4:00pm – Panel #2: Hill Staffers Kevin Wheeler, House Small Business Committee Majority Delia Barr, House Small Business Committee Majority Giulia Leganski, House Small Business Committee Minority

Any increase in IRS funding must be used for compliance assistance and not simply as a mechanism to target small businesses. On Nov. 16, Sens. Chuck Grassley (R-Iowa) and John Thune (R-S.D.) introduced a bill requiring the IRS to specify how it plans to utilize the $80 billion awarded to the agency under the Inflation Reduction Act. Short titled the IRS Funding Accountability Act, the bill would compel the IRS to submit a plan for the $80 billion within two months of the pending legislation becoming a law; failure to submit a plan would reduce the IRS’ funding by $10 million for every day of delinquency. The legislation specifies that the plan from the IRS must include: costs and results of the agency’s efforts to date; clearly defined objectives and timelines; detailed analyses of IRS performance; and changes in income groups subject to audit. According to Biden administration and IRS Nominee Danny Werfel – the prospective IRS Commissioner who would be subject to leading the Funding Accountability Act’s report requirements if he is appointed and the bill becomes law – the $80 billion will be spent on bolstering agency staff and improving the rate of processing returns for Americans. Despite repeated verbal assurances from the White House and IRS officials that the $80 billion will not be used to unduly pursue small-business owners, the small business community continues to insist on formalized protections. With limited time remaining in the 117th session of Congress, including time-intensive priorities for must-pass legislation, like the National Defense Authorization Act (NDAA), as well as a continuing resolution (CR) or another funding mechanism to keep the government open through the new year. Without a pathway to include the IRS Funding Accountability Act as a germane amendment to one of these packages, it is unlikely there will be capacity for the legislation to move and pass through both the Senate and House. For more information on IRS-related concerns for small-business owners, read and respond NSBA’s Action Alert. Sharing stories about how unchecked IRS resources will affect your bottom line could make the difference for the small-business community coast to coast.

FinCEN Releases Final CTA Regulations SEPT 29 | This morning, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) released the final rule regarding required reporting under the Corporate Transparency Act (CTA) or “Beneficial Ownership” law passed by Congress as part of the National Defense Authorization Act in Dec. 2020. The law requires certain LLCs and small companies to continually report to FinCEN all beneficial owners’ personally identifiable information, which is then posted on a public database. The rule goes into effect on Jan. 1, 2024, making no changes significant to make it palatable to small business. This portion of the regulations governing the CTA embody the intent of the law—something NSBA ardently opposed every step of the way. According to NSBA President and CEO Todd McCracken, “There simply is no way even significant changes in the regulations for the Corporate Transparency Act could remedy what was and will be bad policy. The regulations still target only small businesses, still require burdensome, duplicative paperwork, and still fail to require federal agencies to share information they’re already collecting.” Affected companies created prior to enactment of the regulations’ effective date will have one year to report, while companies formed after Jan. 1, 2024, will have just 30 days to file their reports. Subsequently, companies will have 30 days to file updated reports upon any changes in their beneficial ownership. This first rule from FinCEN is just one of three to implement the CTA. Up next: a rule governing who may access this information and how to safeguard it, as well as updates to FinCEN’s customer due diligence rules. While the regulations do not cover penalties given the law’s specificity, it is important to note that failure to comply would be a federal crime with civil penalties of $500 per day up to $10,000 and criminal penalties of up to two years in prison. NSBA supports common-sense efforts to stem money laundering, these changes to the CTA requiring duplicative disclosures are the wrong way to do it, especially since the information is already being collected. The goal of lawmakers could easily be achieved through a simple mandate requiring federal agencies to share information. Instead, small businesses have been targeted and will bear significant burdens once again due to a lapse in effective governing. Check out the FinCEN Fact Sheet and this recent article from the Wall Street Journal featuring insight from NSBA.

A cornucopia of opportunities to support NSBA and opportunities for small business owners across the country. November means a lot of things: National Entrepreneurship Month, celebrating those hard workers fueling our economy and capturing the essence, and, of course, Small Business Saturday. National Entrepreneurship Month President Joe Biden earlier this week signed a proclamation declaring November is National Entrepreneurship Month. NSBA stands with the administration in touting the importance of entrepreneurs to the U.S. economy. Small Business Saturday With just a few weeks until the Thanksgiving holiday, NSBA is urging small-business owners and their customers to participate in the annual Small Business Saturday on Nov. 26, 2022. Building on “Black Friday,” where most retailers do a significant amount of business, Small Business Saturday is an annual campaign to urge consumers to dedicate a portion of holiday shopping to local, independently-owned small businesses. Small businesses are integral to our community, and NSBA is proud to join American Express to help promote this vital part of the nation’s community, connect with your regular customers, and reach new ones on Small Business Saturday and throughout the holiday shopping season. You can download a variety of resources, from storefront signage to ready-to-use social posts, designed to help your business prepare for the big day and continue to reach customers throughout the season. Lean more here. Together, let’s support entrepreneurs, the small businesses their vision creates, and encourage your neighbors to Shop Small on Nov. 26 – and all year long!