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This week, legislation was introduced in the House calling to repeal the Corporate Transparency Act. This week, in addition to NSBA’s testimony before the House Small Business Committee, legislation was introduced in the House to repeal the Corporate Transparency Act (CTA). RELATED | NSBA STANDS WITH SMALL BUSINESS AGAINST THE CTA Congressman Warren Davidson (R-Ohio) has introduced legislation, the “Repealing Big Brother Overreach Act” which would repeal the CTA. Companion legislation is expected to be dropped in the Senate next week by Sen. Tommy Tuberville (R-Ala.). This bill would end the CTA’s unnecessary reporting regime, as well as better equip Congress to craft a better approach to balance national security needs with interests and rights of law-abiding small-business owners. NSBA joined a broad coalition of trade associations in thanking Rep. Davidson and Sen. Tuberville for their efforts to repeal the CTA in a simple, straightforward fashion. In addition to this legislative option to repeal the CTA, NSBA is still pursuing its case against the U.S. Department of Treasury.  Last month, a federal court ruled the CTA unconstitutional. Despite this victory for the NSBA and the small-business community, Treasury officials have made it clear the CTA is still in effect for small-business owners who were not members of NSBA at the time of the decision, and they intend to overturn this ruling. RELATED | NSBA VICTORY IN FEDERAL COURT OVER THE CTA Follow NSBA as we continue our fight against the CTA legally and legislatively, and read the full letter to Congress here.

Watch NSBA's webinar on the New Independent Contractor Rule any time. Missed us on April 25 at 1:00 p.m. EDT? Watch NSBA's recording to hear from leading labor attorney Robert Shea on what you need to know when it comes to the new Independent Contractor rule and how to avoid major regulatory penalties. RELATED | NEWS | DOL Releases New Overtime Rule

Register for the Fireside Chat on disability and inclusion in the small-business workplace today! Join NSBA as we work with ePolicy Works for Fireside Chat on May 2, 2024, at 2 p.m. EDT. During the Fireside Chat, participants will share ways the U.S. Department of Labor can help support and advance disability inclusion in small business. Use #EPWChat to join!

The CTA is not the way to stem money laundering. FOR IMMEDIATE RELEASE Tuesday, April 30, 2024 Contact: Molly Day 202-552-2904 mday@nsba.biz Washington, D.C. – On April 30, 2024, National Small Business Association member Timothy Opsitnick, owner of Opsitnick, LLC and On Call Cyber, LTD in Ohio and Executive Vice President and General Counsel of TCDI in North Carolina, testified before the House Small Business Committee on the major burden posed by the Corporate Transparency Act (CTA). NSBA has been leading the charge against the CTA since its inception, and recently won a judgement from the U.S. District Court of the Northern District of Alabama that cited the CTA as unconstitutional. In his testimony, Opsitnick illustrated the burden CTA poses, “A first-time entrepreneur looking to open a coffee shop, for example, must push through these 102 pages of explanatory language to understand their reporting burden under this statute. Given permitting, licensure, construction and other delays, it’s entirely possible that our theoretical aspiring barista would have to read, understand, and act on over 100 pages of guidance before they serve a single cup to a customer; all under the threat of criminal sanctions.” Throughout the hearing, Members of Congress heard from NSBA’s Opsitnick the various problems with the CTA—not the least of which is that throughout his very active interactions in various small-business organizations, most small-businesses have no idea about the CTA. Opsitnick went on to highlight the massive data privacy concerns that exist with the CTA and elaborated on the chilling effect this rule will have on investment, mentorship and business growth. “According to an NSBA survey, the average cost to remedy a small-business data breach is $15,297,” stated Opsitnick. “However part of my professional practice includes cybersecurity and data privacy matters and I’ve seen small middle-market companies face costs over $100,000 in data breach scenarios, whether due to ransomware, attorneys’ fees, security professionals, or simply reputational damage.” NSBA will continue to seek legal recourse to overturn the CTA for all small businesses in the U.S. and is calling on lawmakers to pass legislation repealing the CTA. Please click here to watch the hearing and here to read the full testimony. 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 is closely tracking overtime rule developments for impacts and effects on small business. In the last week of April 2024, the Department of Labor (DOL) released its final rule on Overtime Regulations which will have significant implications across various industries, particularly in terms of labor costs and workforce management. RELATED | NEWS | NSBA Signs Letter Opposing Rushed Overtime Regulation Changes Technically, this new standard affects eligibility criteria for overtime pay under the Fair Labor Standards Act (FLSA), outlining new criteria for determining which employees are exempt from receiving overtime pay. Those typically exempt from overtime rules include executive, administrative, professional, and other roles often referred to as "white-collar" positions; however, by the DOL’s new rule, the salary threshold determining overtime eligibility or exclusion will change: On July 1, 2024, this salary threshold will be raised to $43,888 and increase to $58,656 on Jan. 1, 2025.  Starting July 1, 2027, salary thresholds will update every three years, based on wage data and economic adjustments. NSBA stands with small-business owners and understands different regulations affect various enterprises in different ways. Federal legal challenges will likely be filed by the business community, including challenges to the new rule related to the triannual automatic adjustments. RELATED | NEWS | NSBA Signs Letter on Overtime Pay Flexibility Act Follow NSBA as we continue monitoring developments related to the new overtime rule.

Join NSBA Partner, GoTo, for a webinar on "How AI Eases IT Overwhelm." “Doing more with less” is the default way of working when you have a small IT department. Tack on today’s retention and resourcing challenges and IT has its hands full. That’s why leaders are turning to artificial intelligence to support the next evolution of the modern helpdesk. After surveying an international cohort of IT decision-makers, GoTo and OnePoll found that 92% of respondents consider AI beneficial for work, with 94% willing to delegate tasks to AI and 93% willing to upskill to leverage the new technology. Join GoTo thought leaders on Thursday, April 25 for this interactive session as we discuss: First-party research on AI trends for SMB IT teams Important implications for agents using AI How (and where) to begin using AI-assisted solutions

H.R. 7963 will require the Treasury to improve small-business communications on reporting. Following NSBA’s small-business victory over the Corporate Transparency Act (CTA) in federal court earlier this year, similar lawsuits were introduced against the CTA across the nation. RELATED | NSBA Fighting for Small Business Against the Cumbersome Corporate Transparency Act In addition to these corresponding lawsuits, NSBA is pleased to report progress on legislative options to address the CTA, including action in the House to reduce cumbersome regulatory burdens for small-business owners. The Small Business Red Tape Relief Act (H.R.7963) was introduced by Representatives Zach Nunn (R-03, Iowa) and Henry Cuellar (D-28, Texas) to hold the U.S. Treasury accountable for educating Main Street businesses on reporting responsibilities. According to NSBA’s survey on the CTA, small-business owners’ top concerns over the CTA are related to a lack of clarity on filing requirements and beneficial owner information (BOI) definitions. H.R. 7963 would hold the Treasury’s Financial Crimes Enforcement Network (FinCEN) accountable to ensure small businesses are not responsible for requirements they have not been appropriately informed of. RELATED | NSBA Small-Business Survey on the CTA NSBA President and CEO Todd McCracken shared the following on the legislation: “America’s more than 33 million small businesses are the backbone of our economy from the smallest towns to the biggest cities, employing roughly half of all private sector workers.  An estimated 5.5 million new entities are formed every year, meaning that this year alone, millions of BOI reports will have to be filed. The last thing an emerging entrepreneur needs is a bureaucratic headache. If the government threatens punitive enforcement action and insists on collecting personal data on millions of Americans, we should demand transparency. We are heartened to see Congress is taking this issue seriously, and we urge legislators to support Representative Nunn’s Small Business Red Tape Relief Act of 2024.” Follow NSBA as we continue tracking efforts to stem cumbersome reporting requirements for small-business owners, including litigation and legislation related to the CTA.

From the SBTC.org website. On April 16, 2024, SBTC Executive Director Jere Glover was invited to testify before the House Small Business Subcommittee on Economic Growth, Tax and Capital Access in a hearing titled “Exploring SBA Programs: Reviewing the SBIC and SBIR Programs’ Impact on Small Businesses." In his testimony, Jere highlighted the remarkable successes of the SBIR/STTR programs, both in the key innovations they have produced as well as the incredible economic returns on the taxpayer dollar generated.  He stressed the need for reauthorization, and urged Congress to make the programs permanent, to avoid the chaos and uncertainty of another contentious reauthorization fight. Jere also recommended streamlining and simplifying the solicitation process to lower barriers of entry to new firms, as well as increasing the size of the program, and engaging with the large primes to improve Phase III transitions. With the SBIR/STTR programs set to expire in September 2025, SBTC’s hope that this hearing can get the ball rolling on drafting reauthorization language that, if not passed this year, will at least serve as a starting point early next.  SBTC has already had several discussions with staffers on the hill about what that legislation might look like, and what legislative vehicles could be used to pass it. Follow the links below to read Jere’s written testimony, and watch a replay of the livestream of the Hearing on the House Small Business Committee’s YouTube channel: Jere Glover April 16 Written Testimony to House Small Business Committee House Small Business Hearing on SBIC and SBIR Livestream

NSBA applauds the Senators who supported legislation to roll-back the Joint-Employer regulations. FOR IMMEDIATE RELEASE Thursday, April 11, 2024 CONTACT | Molly Day 202-552-2904 mday@nsba.biz Washington, D.C. – Last night, the U.S. Senate passed a bill to roll-back the Joint-Employer regulations that went into effect late-February, 2024. NSBA applauds the Senators who supported the legislation, S.J.Res.49 to undo the National Labor Relations Board’s (NLRB) rule which will pose a significant burden and greatly stymie economic growth and innovation for America’s small businesses. Below is a statement from NSBA President and CEO Todd McCracken. "The National Small Business Association commends the Senate for approving legislation to nullify the NLRB’s misguided joint-employer rule which significantly expands how employers are classified as “joint-employers” meaning far less fair and equal bargaining power for smaller employers. “This rule is a massive overreach from the NLRB and would essentially make larger companies and franchisors responsible and liable for the employment practices of their franchisees, suppliers, vendors, contractors, and subcontractors. “The real-world consequence of this rule is that larger companies will scale back their work with small businesses as suppliers, and instead look to take them over and bring them “in-house”. This will lead to fewer start-ups, lost innovation, higher costs, and a less vibrant entrepreneurial economy.” 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 ###

How the New Independent Contractor Rule Will Impact Your Small Business. Join us April 25 at 1:00 p.m.! Join NSBA on April 25 at 1:00 p.m. EDT to hear from leading labor attorney Robert Shea on what you need to know when it comes to the new Independent Contractor rule and how to avoid major regulatory penalties. RELATED | NEWS | DOL Announces Independent Contractor Rule

Empowering Small Business Through AI and Blockchain. Join us on April 10 at 2:00 p.m.! NSBA invites you to explore the frontiers of business technology during the upcoming webinar "Digital Economy 101: Empowering Small Business Through AI and Blockchain." This virtual panel discussion brings together leading experts Jeannette Spaulding, Alexander Kanen, and Thomas Rivera as they discuss practical insights and strategies for leveraging AI and blockchain technology in small businesses. Register here for this free webinar on Wednesday, April 10 at 2:00 p.m. EDT.

Reinstating Section 174 R&D tax provisions is vital to small business. In late March, NSBA joined the Innovation Community in a letter to Sen. Joni Ernst (R-Iowa) urging action on the bipartisan, bicameral Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). This tax plan was announced in January, overwhelmingly passing out of the House by a vote of 357-70. H.R. 7024 would restore provisions of Section 174 of the tax code relating to first-year expensing of research and development (R&D) investment by American small businesses. RELATED | PRESS | NSBA Applauds House for Bipartisan Passage of Tax Relief Bill New rules around R&D expensing went into effect in 2022, under which small-business owners are required to amortize R&D investments over five to 15 years. This change dramatically increases annual tax liability and disincentivizes innovation-generating investments, and small-business owners are disproportionately hit by this standard. RELATED | BRIEF | Reinstate the Annual R&D Deduction Read the full letter to Senator Ernst here, and follow NSBA as we continue following progress and urging the Senate to pass H.R. 7024.