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In conjunction with this quarter’s Board Meeting, NSBA is looking forward to 2024. This week, NSBA convened in Washington, D.C. for its Annual Member Meeting, as well as the final Board Meeting of 2023, where trustees reviewed and laid groundwork for the future of America’s oldest small-business advocacy organization. In addition to approving a number of initiatives related to the roll-out of a strategic plan, a new class of trustees were presented and ratified. Holding leadership positions for the coming year: Chair - Marilyn Wilson Lund, WAV Group | Laguna Beach, Calif. First Vice Chair - Michael Canty, Alloy Precision Molding | Cleveland, Ohio Secretary - Kevin Johnson, NexGen Interactive | Cleveland, Ohio Treasurer - Malcolm Prouty, LeProuty Properties | Austin, Texas Vice Chair for Advocacy - William Belknap, AEONRG | Downington, Penn. Vice Chair for Communications - Joan Myers, Strategic Link Partners | Moncure, N.C. Vice Chair for Membership -  Sanjyot Dunung, Alma Global Knowledge Media | New York, N.Y. Immediate Past Chair Robert Treiber, Boston Engineering Corporation | Waltham, Mass. Following adjournment of the meetings, members of the Board enjoyed a tour of the Capitol, including a visit to the House gallery, where the delegation was able to witness floor proceedings. We’re looking forward to 2024 and continuing to support the nation’s small-business community.

Part III of our Service to Success Series - watch the webinar any time! On Nov. 16, the NSBA Veterans’ Network hosted its third installment of the “Service to Success” virtual webinar series. Led by Graham Plaster, Director of Defensewerx business Nautilus, and Ben Stinson, CEO of FedSherpas, the webinar gave NSBA members an advanced “how to” for fast-tracking defense procurement as a small federal contractor. From PIAs to OTAs, you can find all the keys to accelerating acquisition by watching our recording here. Learn more about NSBA’s Veterans’ Network.

The Credit Card Competition Act (CCCA) is simple common sense for small business.

The law, if implemented, would require millions of Americans to disclose personal information to the federal government indefinitely. FOR IMMEDIATE RELEASE Monday, Nov. 20, 2023 Contact: Molly Day, NSBA​​​​ 202-552-2904 mday@nsba.biz Washington, D.C. – Oral Arguments Begin in Isaac Winkles and National Small Business Association Constitutional Challenge to Congress’s Corporate Transparency Act Huntsville, AL – Today, Nov. 20, at 10:00 a.m., oral arguments in National Small Business Association v. Yellen will begin at the Huntsville United States District Court. The case is a challenge to the constitutionality of the Corporate Transparency Act (CTA) and specifically the law’s beneficial ownershipreporting requirements. The law would require nearly every American who runs or wants to form a corporation or LLC to give the Financial Crimes Enforcement Network (FinCEN)deeply personal information of its owners like date of birth, current address, and an image of their driver’s license. “The CTA has been mired in confusion and ambiguities start to finish. Not only is it bad policy, it is unconstitutional,” said NSBA President and CEO Todd McCracken who will be in attendance for the oral argument. “Americans who are not suspected of doing anything wrong are being asked to provide deeply personal information to a government agency, which is putting the information in a database for criminal law enforcement purposes. These small-business owners will have to pay on average $8,000 in compliance costs in the first year alone. Americans justifiably have little confidence in the federal government’s willingness to secure their personal data, the law calls for the government to share this information with foreign governments.” The oral arguments in the Northern District of Alabama’s Huntsville courthouse focused on challenges to the CTA for violating plaintiff’s First, Fourth, and Fifth Amendment rights while also simply being beyond the scope of Congress’s powers. “Congress, whether or not it has good intentions, is always constrained by the Constitution,” said John Neiman, attorney for the plaintiffs. “Our challenge is trying to get Congress to follow the law and not create an unconstitutional burden on Americans.” Isaac Winkles, the owner of Alabama Property Management, Inc. in Huntsville, along with other local business owners and NSBA members will be in attendance during the oral arguments. Click here to learn more. About NSBA: 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 loves our corporate partner, NVBDC, and our work together supporting Veterans in small business. Last week, NSBA travelled to Louisville, Ky., for the 2023 NVBDC Veterans Business Matchmaking Conference. There, NSBA joined the largest gathering of Certified Service Disabled and Veteran-Owned Businesses in the country to learn more about the challenges facing veterans in small business, including a keynote address from Undersecretary of Commerce Donald Cravins, Jr. Attendees and NSBA were also lucky enough to receive a special tour of the Jim Beam bourbon distillery, followed by valuable networking time with business leaders from across the U.S. A special thank you to all the NSBA and NSBA Veterans’ Network members who came by our booth. It was great to see you, and we were proud to support our partner NVBDC in helping connect veteran-owned businesses with meaningful opportunities. Learn more about NSBA’s Veterans’ Network.

Short-term solutions are band-aids to bullet holes, but shutdowns harm small business. Yesterday, the House voted to pass H.R.6363, a continuing resolution (CR) to fund the government until early next year. The bill, which will see Senate consideration soon, would fund agencies under four of the 12 traditional appropriations bills, including: Agriculture and FDA, Energy and Water, Military Construction and the VA, and Transportation and the Department of Housing and Urban Development until Jan. 19, 2024. The remaining eight appropriations bills spanning: Commerce and the Department of Justice, as well as Science, Defense, Financial Services, and General Government, the Department of Homeland Security, the Department of the Interior and Environment, the Department of Labor, Health and Human Services, the Department of Education, the federal Legislative Branch, and State and Foreign Operations, would be extended through Feb. 2, 2024. Notably, H.R. 6363 acts as both a laddered CR that Republicans requested, as well as a “clean” legislative vehicle, lacking policy and spending changes that Democrats requested. This bifurcated compromise ensures the federal government will not shut down this Saturday, Nov. 18, and gives Congress an additional 21 legislative days to reach a long-term spending solution. Despite some positive momentum, House Speaker Mike Johnson (R-La.) publicly announced he will not support any additional incremental funding extensions, telling reporters yesterday he is, “…done with short-term CRs.” For how H.R.6363 passed under majority-Democratic support—the very situation that imperiled former House Speaker Kevin McCarthy (R-Calif.)—the 21 remaining days (absent weekends and scheduled recesses) for Congress to find a spending solution may prove to not be enough. NSBA is closely monitoring negotiations on Capitol Hill, and we have repeatedly informed Congressional leaders of the dangers a shutdown would pose to the small business community. Follow us for the latest on the funding debate.

NSBA is proud to be a supporter of 2023 Small Business Saturday, Nov. 25 the day following Black Friday. 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. 25, 2023. 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 like yours are integral to our community, and we’re proud to join American Express to help you promote your business, 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. Learn more here. Together, let’s encourage your neighbors to Shop Small on Nov. 25 – and all year long!

NSBA's latest survey indicates expensive changes on the horizon for small-business owners. FOR IMMEDIATE RELEASE Tuesday, Nov. 14, 2023 Contact: Molly Day, NSBA 202-552-2904 mday@nsba.biz Washington, D.C. – The National Small Business Association (NSBA) today released a new member survey highlighting the massive burden small businesses face in complying with the Corporate Transparency Act (CTA). Among the key data: the average small-business owner is looking at compliance costs for CTA of nearly $8,000—in the first year alone. “Not only are small businesses facing compliance costs far beyond what Treasury has suggested, the overwhelming majority either have no idea what the CTA is or have no idea if they will be required to report,” stated NSBA President and CEO Todd McCracken. “The education campaign on this massively burdensome new mandate has been nonexistent—and we’re less than two months away from the first wave of compliance requirements.” The CTA will require businesses with fewer than 20 employees to disclose detailed personal information on ALL “beneficial owners” to the Department of Treasury’s Financial Crimes Enforcement Network. NSBA has filed suit against Treasury over the CTA, and oral arguments are scheduled for Monday, Nov. 20 at 10:00 a.m. at the U.S. District Court for the Northern District of Alabama in Huntsville. The NSBA survey also found that, in addition to filing the CTA reports on their own business, nearly half of all small-business owners will be reported on as a beneficial owner for another business. When it comes to understanding the law, majority of small-business owners plan to understand and comply with the CTA on their own, absent outside advice. Unfortunately the regulations are so vague, confusing and ambiguous the likelihood that these businesses will inadvertently run afoul could spell disaster for millions of small businesses. “A major concern with the CTA is its potential to open small businesses to additional cybersecurity threats. The average cost to remedy a data breach is $15,297 among small-business owners, including recovering stolen funds, software upgrades, staff and external advisor fees,” stated McCracken. Please click here to download the full report. About NSBA | 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. ###

Outlook does not look bad, but it's not looking too good, either. This week, with newly elected Speaker Johnson presiding, Congressional Republicans met behind closed doors to discuss options for a continuing resolution (CR) to avert a shutdown by funding the government at existing levels for a short period. Currently, there are only a handful of possibilities under consideration. Of those, the most likely options are: A “clean” CR – meaning one that continues funding for the federal government at existing levels with no changes or policy “rider” attachments. This bill would most likely be crafted to extend funding into January, giving Congressional leaders time to negotiate a permanent spending package. This is the option favored by most of the Republican Conference, and is also the most likely to pass both chambers. A mostly clean CR, with funding for Israel and/or Ukraine, and other international crises (including the southern border) attached. This is what Senate leadership is suggesting is the best (and possibly only) path forward, as the Senate is far more unified in its support for sending aid to the Ukrainian government than the House. A “laddered” CR – meaning one that separates out funding into two or more pieces, with the first hard date in December and a subsequent one in January. This would enable members to tackle government funding in slightly smaller bites. The appeal here is that House Republicans have previously expressed concern about funding the government en-masse through “omnibus” legislation (massive bills spanning well over 4,000 pages), and they believe that by breaking up the bills, they can work through issues more effectively, while also forcing Senate Democrats to the negotiating table. This bill is almost certainly dead-on-arrival in the Senate, and would be expected to also struggle mightily in the House, as while the idea has early support from influential groups including the Freedom Caucus, the Republican Study Committee, and Speaker Johnson, many Republican leaders are publicly skeptical and/or outright opposed to this bill. The bottom line is that there is still no single consensus plan to avoid a government shutdown on November 18th. If Speaker Johnson pursues a laddered CR, the odds of a shutdown increase substantially. With no hope of Senate consideration, much less passage, that option leaves no breathing room for negotiation. Moreover, given the impending deadline, it is unlikely that Congress will get two attempts to pass a funding bill before the government shuts down. NSBA is actively working to ensure Congressional leadership is aware of the dangers a shutdown poses for small companies, and we will continue to provide updates as we have them.

Millions of employees in almost every industry will be affected by the proposed changes. This week, NSBA sent a letter to the Department of Labor (DOL) regarding its proposed changes to overtime work exemptions. The letter—part of a coalition effort from the Partnership to Protect Workplace Opportunity (PPWO)--responded to DOL’s proposed rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees (RIN 1235-AA39).” RELATED NEWS | DOL Proposes New Overtime Rules These latest revisions would entitle millions of workers who are now exempt from overtime requirements to time and a half pay when they work more than 40 hours in a workweek. Additionally, this DOL proposal would raise the salary test from its current $35,568 level to $60,209 (adjusted from $55,068 published by the DOL to reflect averages based on scheduled, annual increases) as the annual salary threshold. Employees below this new level working more than 40 hours in a workweek will remain eligible for overtime pay. RELATED NEWS | NSBA Joins PPWO in DOL Letter Requesting OT Comment Extension Given the magnitude of this rule, the letter underscores how NSBA believes employees and employers are best served with a system that promotes maximum flexibility in structuring employee hours, career advancement opportunities for employees, and clarity for employers in classifying their employees under the Fair Labor Standards Act (FLSA). Despite NSBA urging DOL to extend the due-date for comments, submissions closed on Nov. 7. Read the full letter here, and follow NSBA as we track the latest from the DOL.

CTA is not the way to support small business when it comes to stemming money laundering. On Tuesday, Nov. 7, the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) issued a final rule implementing part of the NSBA-opposed Corporate Transparency Act (CTA) which outlines when a business can use a FinCEN identifier instead of the specific information required on beneficial owners. Per the guidance: “A FinCEN identifier is a unique number that FinCEN will issue upon request after receiving required information.” FinCEN, in their press release stated that allowing an individual to be identified by a FinCEN identifier should simplify the reporting process. However, any individual who wishes to utilize a FinCEN identifier must first submit their name, date of birth, address, unique identification (driver’s license, state-issued ID or passport) along with an image of said identification. Once an individual has their FinCEN number, that identifier can be used by other reporting companies in-lieu of their personal data. Unfortunately, the application process will be electronic which represents a significant potential vulnerability in data privacy and does nothing to assuage concerns over FinCEN’s storage of personal information. Furthermore, there remains a great deal of uncertainty in terms of which individuals’ information must be reported under the CTA, and this could lead many would-be beneficial owners to share private, personal information without there actually being a need for them to do so. While the intent of the CTA was to stem money laundering, the CTA is not only bad policy, but also unconstitutional. Failure of a small business to comply—intentional or not—could result in up to $10,000 in fines and up to two years in prison. NSBA has filed a lawsuit against Treasury over the implementing regulations of the CTA, however an act of Congress to repeal the law is the best way to ensure this bad policy doesn’t see the light of day. Click here to read the full rule, and click here to learn more about FinCEN identifiers on p. 40 of the Small Entity Compliance Guide.

NSBA congratulates and looks forward to working with Speaker Johnson.