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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.

Think you're too small to experience a cyber attack? That's not the case. In fact, cyber threat actors (CTAs) are increasingly setting their sights on small businesses. If successful, their attack attempts can be devastating. Fortunately, the Center for Internet Security released the "CIS Implementation Guide for Small- and Medium-Sized Enterprises." It's designed to help your small business rapidly adopt Implementation Group 1 (IG1), a subset of the CIS Critical Security Controls (CIS Controls). Let's examine how below. The Impact of IG1 IG1 is one of three Implementation Groups of the CIS Controls. It's special because it lists fundamental steps that you can take to establish essential cyber hygiene. In doing so, you'll lay a foundation for defending against some of today's most common cyber attack vectors. Implementing all of IG1 takes time, but by using the guide's methodology, you'll be able to work through most of the recommended actions within IG1. At that point, you can review which IG1 Safeguards you haven't yet implemented. You can then lay out a plan for enacting those IG1 Safeguards that will have the greatest impact on your small business. 3 Small Business Cybersecurity Challenges As a small business owner, you may deal with the following cybersecurity challenges every day: Limited Resources: Your tight budget provides little room to invest in cybersecurity, leaving you exposed to exploitation attempts from cybercriminals. Lack of Expertise: You might not know what you need to effectively navigate the changing cyber threat landscape and mitigate related business risks. Insufficient Security Policies: You might lack comprehensive cybersecurity policies and procedures, which can result in inadequate access controls and other security weaknesses. These challenges make it difficult to deal with threats like theft of information, password theft, phishing attacks, ransomware, natural disasters, instances of defacement, and downtime incidents. The First Steps Toward Essential Cyber Hygiene CIS's implementation guide gets you started on the path toward establishing essential cyber hygiene and implementing IG1. It does this by listing free and low-cost tools as well as procedures for improving your cybersecurity. It also recommends the following approach to help you prioritize your cybersecurity efforts while operating in the constraints listed above: Phase 1 – Complete five inventory-related worksheets included in the guide: Enterprise Asset Inventory Worksheet Software Asset Inventory Worksheet Data Inventory Worksheet Service Provider Inventory Worksheet Account Inventory Worksheet Phase 2 – For each asset listed in your inventory, complete the Asset Protection Worksheet. Phase 3 – For each account listed in your inventory, complete the Account Security Worksheet. Phase 4 – For each asset, complete the Backup and Recovery Worksheet. Phase 5 – Complete the Incident Response Worksheet. Phase 6 – Verify that all employees have reviewed the Cyber Education Worksheet's training options. Start Growing Your Cybersecurity Maturity CIS's guide can help you strengthen your cybersecurity maturity while balancing limited resources and technical know-how. Your small business might be a target of cybercriminals. But you don't have to be a victim. Ready to get prepared?

Third week was the charm for the House to find its voice with a new speaker. FOR IMMEDIATE RELEASE Oct. 25, 2023 Contact: Molly Day 202-552-2904 press@nsba.biz NSBA Welcomes Speaker Johnson Washington, D.C. – Following weeks of turmoil and a standstill in the U.S. House of Representatives, the House voted this afternoon to select Rep. Mike Johnson (R-La.) as the new Speaker of the House. Every single Republican voted for Johnson, giving him 220 votes. Below is a statement from NSBA President and CEO Todd McCracken: “I want to congratulate Congressman Johnson on being named Speaker of the House. While he steps in during a particularly tumultuous time, the business of the American people has been delayed and we wish him—and the entire Congress—success on key priorities. “America’s small businesses are facing significant challenges today: the implementation in just months of a sweeping new reporting burden—the NSBA-opposed Corporate Transparency Act—the expiration of critical small-business tax reductions and the ever-present challenge of finding access to capital. “Additionally, small-business owners are wary of the threat of a government shutdown. The House’s three-week impasse has left lawmakers with less than three weeks to hammer out a spending deal to avoid a disastrous shutdown—particularly for the millions of small businesses that do business directly with the federal government. “I look forward to working with Speaker Johnson, and all lawmakers on Capitol Hill, on ensuring a strong U.S. economy where small businesses are the focal point, not an afterthought.” Please click here to learn more about NSBA’s priority issues. Celebrating more than 85 years, 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. SBTC is NSBA’s hi-tech industry association of companies dedicated to promoting the creation and growth of research-intensive, technology-based U.S. small business. Please visit www.nsba.biz or follow us @NSBAAdvocate. ###

Issue committee members are NSBA’s advisors to our Board and Policy Groups. Last Thursday, NSBA held its fourth and final installments of the year’s Economic Development and Health & Human Resources issue committee meetings. During the meetings, NSBA Director of Federal Policy Reed Westcott shared the latest news on the Continuing Appropriations Act that extended government funding through November 17 (H.R. 5860, Public Law No: 118-15), as well as the House Republicans’ internal struggle to fill vacant Speakership. On the Economic Development issue committee call, members discussed new legislation to change the scope of the Small Business Administration’s (SBA’s) lending power. Titled as an act “To prohibit the Administrator of the SBA from directly making loans under the 7(a) loan program, and for other purposes,” H.R. 5848 would effectuate its title, and H.R. 5427, a bill “To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes,” would prevent any person convicted of defrauding the U.S. Government ineligible to receive any financial assistance from the SBA under the 7(b) program. NSBA Issue Committee Members voiced mixed feelings on potential changes to the SBA’s 7(a) program, but overwhelmingly supported efforts to combat fraudulent enterprises from receiving small business assistance. NSBA Members of the Health & Human Resources Issue Committee discussed two bills that would expand employee health benefits: The Telehealth Benefit Expansion for Workers Act of 2023 (H.R. 824) would allow employers to offer stand-alone telehealth benefits; and The Bipartisan Health Savings Account (HSA) Improvement Act of 2023 (H.R. 5688), which is intended to make HSAs more accessible. Honorary NSBA Past Chair Gary Kushner and Leadership Council member Stephanie Hagans led a lively discussion on these bills and other proposed rule changes under the Affordable Care Act. Interested in getting involved with an issue committee? Click here to learn more and join a committee today!

The nullification of CFPB’s attempt to collect small-business data passed through the Senate 53-44. This week, Sen. John Kennedy (R-La.) introduced a resolution to nullify the Consumer Financial Protection Bureau’s (CFPB’s) small-business data collection rule. Senators agreed to the nullification 53-44. The CFPB has been working for more than a decade to draft and ratify a rulemaking on how to collect demographic and other sensitive data related to small-business loans and lending from financial institutions. RELATED | Small-Business Community Balks Pending Beneficial Ownership Rule, Disclosures While collection of this information could prove impactful in how the federal government provides tools and resources for the small-business community, supporters of Sen. Kennedy’s nullification say the CFPB’s 1071 proposal in its current form is too wide in its scope of who would be required to provide information from small-business owners and what banks would need to ask. Despite passage in the Senate, the nullification resolution will require a favorable vote in the House, which is currently embroiled in inter-party squabbling over speaker, as well as signature from the President, who has said he will not support the nullification. RELATED | Speaker Squabbles, and the Vote Continues to Come Down Follow NSBA as we continue tracking this resolution on Capitol Hill.

Watch NSBA’s webinar with our corporate partner, Judy, any time! On Oct. 17, NSBA and Judy Security hosted a free webinar on the what, how, and why of cybersecurity insurance. Given that over 65 percent of small- and mid-sized businesses have experienced cyberattacks in the past two years, this webinar couldn’t have been more timely. Raffaele Mautone, CEO and Founder Judy Security shed light on the importance of compliance and the advantages of Cybersecurity Insurance for any business handling sensitive data, like social security numbers, medical records, and financial information. Attendees gained valuable insights into selecting the right cyber security insurance for their company, understanding the comprehensive coverage cyber liability insurance provides, and establishing a step-by-step approach to fortify cybersecurity and compliance within their organization. Join us to enhance your cyber resilience – review the materials here, and watch the Judy webinar any time! If you found the NSBA webinar with Judy Security insightful, we encourage you to learn more. Judy is inviting NSBA members and friends to their next webinar titled 'Empowering SMBs through the Complexities of Cybersecurity' on Thursday, Oct. 26 at 11:00 a.m. CDT. Click here to register!

Follow NSBA for the latest from the House on Capitol Hill. UPDATE as of 2:10 p.m. ET Oct. 25, 2023 | Rep. Mike Johnson (R-La.) has been elected as the 56th speaker of the House. After nearly three weeks of a vacancy, every single Republican voted for him, giving him 220 votes. ### UPDATE as of 8:00 a.m. ET Oct. 25, 2023 | House Republicans chose Rep. Mike Johnson of Louisiana to be their speaker-designate during a late-night GOP conference meeting Tuesday. And early indications were that on their fourth nominee after three weeks without a speaker, this time might really be the last. ### UPDATE As of 7:15 a.m. ET Oct. 24, 2023 | After no progress with yesterday's two-and–half-hour inner-conference candidate forum, House Republicans will once again gather this morning behind closed doors to pick a speaker. They are down to eight candidates after Rep. Dan Meuser (R-Pa.) dropped out last night. ### UPDATE As of 12:30 p.m. ET Oct. 20, 2023 | Rep. Jim Jordan (R-Ohio) has lost a third vote for House speaker.  Several alternative GOP candidates are already preparing to launch bids for the job. ### UPDATE As of 6:30 p.m. ET Oct. 18, 2023 | Chaos continues as Rep. Jim Jordan (R-Ohio) has now failed to achieve the speakership in two successive votes on the House floor. Particularly, Jordan lost support between the votes, with fewer Republicans supporting him today than yesterday. Currently, it is unclear whether any Republican can muster enough support to win the speakership. As of early this afternoon, the House remains paralyzed- unable to consider or advance any legislation until a speaker has been selected. Some House Republicans are debating a vote to expand the limited powers granted to Speaker Pro Tempore Rep. Patrick McHenry (R-N.C.), but this move would not be without its own challenges. Rumors of a coalition government are also persistent; however, there has not been any public show of support for such a plan. We remain in limbo in Washington, but NSBA is closely monitoring the situation and will continue to provide updates as they become available. ### UPDATE As of 1:33 p.m. ET Oct. 18, 2023 | Rep. Jordan has officially lost a second vote in his bid for speaker. The Ohio Republican received 199 votes. House Democratic leader Hakeem Jeffries received 212 votes. Twenty-two Republicans cast their ballot for someone else. Speaker Pro Tempore Patrick McHenry gaveled the House into recess. ### Following the removal of Rep. Kevin McCarthy (R-Calif.) from his Speakership on Oct. 5, House Republicans again began the process of electing a Speaker. RELATED NEWS | Speaker Elections Commence on Capitol Hill After first running Majority Leader Steve Scalise (R-La.), who failed to garner the 217 required votes to secure his nomination, the GOP then attempted to run Judiciary Committee Chairman Jim Jordan (R-Ohio), who fell 20 votes short of the procedural threshold. With the House split 221 Republicans to 212 Democrats, only four defector votes can be spared in the majority’s attempts to secure a new Speaker. Moving into the second business week of no Speaker in the House, Republicans once more attempted to run Chairman Jordan (R-Ohio) today, with the vote again coming up short. The vote remains open, but is expected to fail. Follow NSBA as we track the proceedings for Speaker nominations within the Republican party that are expected to continue through this week.

If you haven't signed up, join an NSBA Issue Cmte. today! Last Thursday, NSBA held its quarterly Environmental & Regulatory Affairs (ERA) and Tax & Fiscal Policy issue committee meetings. There, NSBA members weighed in on legislation that might impact the landscape of small business, from the Small Business Regulatory Reduction Act to the Securing America’s R&D Advantage Act. They also introduced new priorities for consideration through the NSBA issues filter, which determines which issues the organization will champion. NSBA’s issue committees are the grassroots engine that propels all other advocacy efforts. To register or update your membership to an issue committee, click here.