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“The federal government had no choice but to appeal. We are glad that it did...." FOR IMMEDIATE RELEASE Tuesday, March 12, 2024 CONTACT | Molly Day 202-552-2904 mday@nsba.biz Washington, D.C. – The U.S. Department of Justice and Treasury Department's Financial Crimes Enforcement Network has formally appealed the U.S. District Court of Northern Alabama’s ruling in favor of NSBA’s lawsuit to strike down the Corporate Transparency Act (CTA). Below is a statement from NSBA President and CEO Todd McCracken. “The federal government had no choice but to appeal. We are glad that it did, so that the Eleventh Circuit, which also has jurisdiction over Georgia and Florida, can now affirm the ruling we obtained from the Northern District of Alabama that the CTA is unconstitutional. “Not only does the CTA fall far short of its laudable goal of stemming money laundering, it places the onus for policing illicit business on law-abiding small businesses and poses a significant risk when it comes to data security. “If Congress does not repeal the CTA, eventually the Supreme Court will need to address this issue as well and strike down the statute for the entire United States. “Unfortunately, until that happens, FinCEN has declared “full speed ahead” on compliance for all but the plaintiffs in the case. When coupled with the fact that FinCEN put virtually no effort into informing the public about the obligations of small businesses under the CTA, FinCEN’s unwillingness to suspend enforcement shows a clear disregard of America’s small-business owners. “FinCEN should immediately reverse course and suspend enforcement of the CTA for all until these issues are finally decided.” Please click here to read the appeal. 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 ###

"...calling focus to entrepreneurship and the ability for Americans to start, run and grow their own business is certainly welcome." FOR IMMEDIATE RELEASE | March 7, 2024 CONTACT | Molly Day 202-552-2904 | press@nsba.biz Washington, D.C. – President Joe Biden delivered his official State of the Union Address last night where he highlighted his administration’s efforts on Below is a statement from NSBA President and CEO Todd McCracken: “I applaud President Biden’s emphasis on the economy and the critical role small business plays in it. The President called every American small business “…a literal act of hope,” a truth that every entrepreneur in the nation understands And while he gave unions more credit for building America than he did small business keeping our communities thriving, his calling focus to entrepreneurship and the ability for Americans to start, run and grow their own business is certainly welcome. “President Biden also highlighted the importance of a fair tax system, and I couldn’t agree more. One of the biggest burdens small businesses face when it comes to federal taxes is complexity. The ever-growing web of tax sunsets and expirations makes navigating federal taxes nearly impossible to navigate. “It is critical that policymakers understand the differences between small and large business. I urge the administration and lawmakers to seek small-business input on any kind of new regulation or policy that will impact small business. Furthermore, I urge all policymakers to take action to solve the biggest issues facing our members: repeal and delay the Corporate Transparency Act; pass legislation to extend the tax cuts that will end next year for the majority of small businesses; and avoid government shutdowns which harm countless small businesses. “I look forward to continuing our work with the Biden administration in providing insight and perspective from America’s small businesses as policymakers move forward on these important topics.” Please click here for more on NSBA’s priorities for policymakers in Washington, D.C. Celebrating 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 follow us at @NSBAAdvocate. ####

Shutdowns harm small business. Follow NSBA as we track the progress of this funding legislation through consideration in the Senate and signature into law. This week, the House of Representatives passed a compromise appropriations “minibus” bill 339-85, which will keep parts of the government funded through the remainder of fiscal year 2024. This bipartisan, bicameral package encompasses six appropriations bills: Agriculture, Rural Development, FDA, and Related Agencies; Commerce, Justice, Science, and Related Agencies; Energy and Water Development; Interior, Environment, and Related Agencies; Military Construction, Veterans Affairs, and Related Agencies; and Transportation, Housing and Urban Development, and Related Agencies. Both Democrats and Republicans have found things to celebrate in the compromise, with House Appropriations Committee Chair Kay Granger (R-Tex.) announcing the package allows them to, “…achieve what we set out to do: strategically increase defense spending and make targeted cuts to wasteful non-defense programs.” Her Senate counterpart, Senator Patty Murray (D-Wa.) specifically highlighted funding for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and went on to say: “Democrats fought hard to protect investments that matter to working people everywhere and help keep our economy strong—rejecting devastating cuts to housing, nutrition assistance, and more.” Now that the House has passed the package, it moves to the Senate for speedy consideration before funding for the covered agencies expires on Friday, March 8th. Unfortunately, as it was designed to follow the funding deadlines of the bifurcated Continuing Resolutions (CRs) that have been used to avert shutdowns since last year, this roughly $470 billion compromise only funds part of the government. Many federal agencies—including the Small Business Administration (SBA)—will have to wait at least until the House returns next week to see their funding continued using a separate legislative vehicle. NSBA is carefully monitoring the situation and will continue to provide updates as they become available.

“FinCEN should immediately reverse course and suspend enforcement of the CTA for all until these issues are finally resolved.” FOR IMMEDIATE RELEASE Tuesday, March 5, 2024 Contact: Molly Day | 202-552-2904 | mday@nsba.biz Washington, D.C. – The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) announced last night that they would ONLY follow the U.S. District Court’s ruling in favor of NSBA’s lawsuit to strike down the Corporate Transparency Act (CTA) specifically for NSBA members. This decision means all other small-business owners across the country will continue to face uncertainty, significant regulatory burdens and potentially crippling penalties because of the CTA. Below is a statement from NSBA President and CEO Todd McCracken. “FinCEN continues to demonstrate its disregard for the small-business community and complete tone deafness to the significant burdens and regulatory confusion the CTA places on law-abiding business owners throughout the country. “A federal court has declared the CTA unconstitutional.  Rather than suspend enforcement of the CTA for all, FinCEN has declared “full speed ahead” on compliance for all but the plaintiffs in the case. When coupled with the fact that FinCEN put virtually no effort into informing the public about the obligations of small businesses under the CTA, FinCEN’s unwillingness to suspend enforcement shows a clear disregard of America’s small-business owners. “FinCEN should immediately reverse course and suspend enforcement of the CTA for all until these issues are finally resolved.” Please click here to read the ruling. 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. ###

A clear victory for law-abiding small-business owners across the U.S. Late Friday, March 1, Judge Liles Burke of the U.S. District Court of the Northern District of Alabama ruled in favor of NSBA’s lawsuit over the constitutionality of the Corporate Transparency Act (CTA). Please click here to read the ruling. NSBA has spent years fighting against the CTA and applauds the ruling which is a clear victory for law-abiding small-business owners across the U.S. who would have been forced to disclose their sensitive personal information to a government database. As the sole small-business organization behind the lawsuit, this ruling is a testament to NSBA’s commitment to America’s small-business owners. “The CTA has from the very beginning been poor policy that unfairly targets America’s small businesses,” said Todd McCraken, President and CEO of NSBA. “This ruling justifies the concerns of millions of American businesses about how the CTA is not only a bureaucratic overreach, but a Constitutional infringement.” NSBA and its member, Huntsville business owner Isaac Winkles, first brought the case before the District Court. While the case was being considered in court, the U.S. Treasury Department’s and the Financial Crimes Enforcement Network’s implementation of the CTA has fallen short of expectations. Millions of small-business owners still do not know about the requirements of the CTA or the beneficial ownership information (BOI) database. The database, which began collecting BOI information earlier this year, is ripe for data security issues and confusion, confusion that could land law-abiding small business owners with hefty penalties or even jail time. “As the court noted, the ultimate goals of the CTA, countering money laundering and terrorism financing are laudable,” said John Neiman, counsel for the NSBA and Mr. Winkles. “But as the court also noted, the Constitution sets limits on what Congress can do to achieve even if the most laudable of goals, and Congress violated those limits here. Congress can find a way to achieve these goals without exceeding the limits on its powers under the Constitution and without violating the constitutional rights of ordinary law-abiding American citizens.” “The judge’s decision is an opportunity for Congress to go back to the drawing board and find a solution that not only protects Americans from bad actors here but overseas,” said McCraken. “The CTA simply will not accomplish the goal of stemming money-laundering – what it does is overstep the bounds of privacy, the law, and common sense at the expense of America’s small businesses.” Please click here for more details on NSBA’s efforts on the CTA. #CTA:NotTheWay

"...the CTA is not only a bureaucratic overreach, but a Constitutional infringement.” FOR IMMEDIATE RELEASE Monday, March 4, 2024 Contact: Molly Day 202-552-2904 | mday@nsba.biz Judge Rules in Favor of NSBA in Lawsuit over Corporate Transparency Act HUNTSVILLE, AL – NSBA applauds the ruling by the U.S. District Court of the Northern District of Alabama to grant summary judgment in NSBA’s challenge of the constitutionality of the Corporate Transparency Act (CTA). The ruling by Judge Liles Burke to strike down the CTA is a victory for law-abiding small-business owners everywhere who would have been forced to disclose their sensitive personal information to a government database. “The CTA has from the very beginning been poor policy that unfairly targets America’s small businesses,” said Todd McCracken, President and CEO of NSBA. “This ruling justifies the concerns of millions of American businesses about how the CTA is not only a bureaucratic overreach, but a Constitutional infringement.” The challenge to the CTA began in 2022 when the NSBA and Huntsville business owner Isaac Winkles first brought their case before the District Court. While the case was being considered in court, the U.S. Treasury Department’s implementation of the CTA has fallen short of expectations - millions of small-business owners still do not know about the requirements of the CTA The database is ripe for data security issues and confusion which could saddle small-business owners with hefty penalties or even jail time. “As the court noted, the ultimate goals of the CTA, countering money laundering and terrorism financing are laudable,” said John Neiman, counsel for the NSBA and Mr. Winkles. “But as the court also noted, the Constitution sets limits on what Congress can do to achieve even the most laudable of goals, and Congress violated those limits here. Congress can find a way to achieve these goals without exceeding the limits on its powers under the Constitution.” “The judge’s decision is an opportunity for Congress to go back to the drawing board and find a solution that will truly protect Americans from bad actors,” said McCracken. “The CTA simply will not accomplish the goal of stemming money-laundering – what it does is overstep the bounds of privacy, the law, and common sense at the expense of America’s small businesses.” Please click here to read the ruling. 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. ###

Even with a shutdown looming, Congress prioritized small-business and passed a number of legislative items to the Senate. During Wednesday votes, the U.S. House of Representatives favorably passed a slate of small-business bills, including a number of Veteran-related and opportunity expansion legislative items. H.R. 3511, the Service-Disabled Veteran Opportunities in Small Business Act – sponsored by Reps. LaLota (N.Y.-01), McGarvey (Ky.-03), Lee (Nev.-03), Thanedar (Mich.-13), and Lawler (N.Y.-17). Federal agencies have a goal of spending five percent of all contracting dollars with small businesses owned by service-disabled veterans. This bill requires the Small Business Administration to help failing agencies improve their inclusion of service-disabled veteran owned small businesses. H.R. 4669, the DOE and SBA Research Act – sponsored by Reps. LaLota (N.Y.-01) and Thanedar (Mich.-13). This bill requires the Department of Energy and the Small Business Administration to enter into an agreement to collaborate on research and development activities. H.R. 5265, the Small Business Administration Rural Performance Report Act – sponsored by Reps. Alford (Mo.-04), Luetkemeyer (Mo.-03), Ellzey (Texas-06), Bean (Fla.-04), Stauber (Minn.-08), and Pappas (N.H.-01). This bill requires the Small Business Administration to report on its efforts – specifically within the Office of Rural Affairs – to promote businesses and agricultural economies in rural areas. H.R. 6591, the Encouraging Success Act – sponsored by Reps. Ellzey (Texas-06), Moran (Texas-01), and Thanedar (Mich.-13). This bill requires the Small Business Administration to reassess the 8(a) program threshold cap every four years to ensure that it is in line with market realities. H.R. 7105, the WOSB Certification and Opportunity Expansion Act– sponsored by Reps. Velazquez (N.Y.-07) and LaLota (N.Y.-01). This bill requires that only women-owned small businesses that have been certified by a federal agency, state government, or national certifying entity approved by the Small Business Administration are included when calculating whether a federal agency has met its contracting goals with respect to such businesses during a fiscal year. RELATED | NSBA Support Small-Business Veterans Several other small-business bills previously passed out of the House Small Business Committee were up for a full vote yesterday, but, with the need to address a spending plan to prevent a government shutdown, several items’ consideration was postponed: H.R. 5426 – To require the Administrator of the Small Business Administration to provide a link to resources for submitting reports on suspected fraud relating to certain COVID-19 loans H.R. 7128 – The WOSB Integrity Act of 2024 H.R. 7102 – Native American Entrepreneurial Opportunity Act RELATED | House Small-Business Chair Pens Letter to Pres. on NSBA Issue Priority Follow NSBA as we continue to follow progress on small-business legislation, including the passed items as they move to the Senate for further consideration, and read more about NSBA’s Issue Priorities here.

Join NSBA's Vets' Net for a webinar on Wednesday, March 13 at 1:00 p.m. EDT. The NSBA Veterans’ Network will be hosting its next webinar, “Public and Private Contracts 101,” on Wednesday, March 13 at 1:00 p.m. EDT. There, the Service to Success team will explore best practices for networking with buyers, receiving useful feedback on proposals, and leveraging free resources to successfully win bids in the public and private sectors. Space is limited, so don’t delay: click here to reserve your spot on the webinar! Have a question you’d like to see answer during the webinar? Please email NSBA’s Ian Elsenbach at ielsenbach@nsba.biz for consideration.

Commitments to common sense tax policy must prevail in Congress to support small business. On Wednesday, after an evening huddle of Senate Finance Committee Republicans, Ranking Member Mike Crapo (R-Id.) indicated that a majority of the Senate Republican Conference was not currently supportive of the tax deal, and does not want to move forward without that majority, despite support from the Democratic Caucus and overwhelming bipartisan House support. Sen. Crapo himself had previously outlined objections he still had to the tax deal, including provisions relating to the Child Tax Credit (CTC).  Beyond his own objections, Sen. Crapo also shared that other senators had changes they would like to make to the bill, and that making significant tax changes during the IRS filing season was worrisome. This poses a significant hurdle for final passage of any tax deal, especially one which includes key NSBA-led provisions, like the Section 174 R&D expensing fix. RELATED | BRIEF | Reinstate the Annual R&D Deduction If the Senate holds a markup of the House-passed bill, it becomes vastly more difficult for the bill to become law, both because the CTC/R&D compromise underpinning the bill may be in danger of unraveling, and because the House is unlikely to reconsider the bill. If the Senate does reopen consideration, the margin for passage will be much slimmer. Sen. Crapo has said he is, “…working on trying to identify a pathway to see if we can get a majority of our caucus supportive,” but, given his stance on the bill, it is likely that pathway would involve significant changes. NSBA is closely monitoring the progress of the tax deal, and will continue to provide updates as they are received. To continue driving our efforts, make your voice heard by filling out our Action Alert for your Senators, to  highlight just how critical this bill is to small-business owners across the country.

Shutdowns harm small business. On Thursday, the House passed a temporary funding bill to avert a Saturday partial US government shutdown, sending the bill to the Senate, where it passed 77-13. Congress’ latest stopgap measure will head to President Joe Biden’s desk. The House vote was 320 to 99, with 97 Republicans voting against the stopgap. The bill would extend funds for some departments through March 8 and others through March 22 as lawmakers work out differences on delayed full-year spending packages for the fiscal year that began Oct. 1. House Republican leaders agreed to the fourth interim funding measure of the fiscal year after reaching a deal to fund parts of the government through Sept. 30. RELATED | NEWS | Shutdowns Harm Small Business For how shutdowns harm small business, NSBA commends Congress for prioritizing a solution to prevent a lapse in funding, and we will continue to monitor progress of a longer-term spending plan.

The Consumer Financial Protection Bureau must complete the required analysis of its impact on small businesses. Last week, NSBA President and CEO Todd McCracken sent a letter to the Consumer Financial Protection Bureau (CFPB) regarding its pending final rule on credit card late fees. For nearly 30 years, a law has been in place to ensure that federal regulators understand the potential benefits and harm to small businesses that are easily overlooked in the rulemaking process. Furthermore, per the Small Business Jobs Act, agencies are compelled to consider comments submitted by the U.S. Small Business Administration Office of Advocacy. RELATED | NSBA Letter: Support CCCA Urging the CFPB to fully consider the impact on small businesses ahead of announcement of its final rule, NSBA is optimistic the Bureau will engage with our community on what the regulation might mean for small-business owners’ bottom lines. Read the full letter here. Learn more about NSBA’s Priority Issues here, and follow us as we continue correspondence with agencies, Congress, and leaders and regulators of the small-business community.

Despite the small-business community’s great need for support, the SBA Chief Counsel role in the Office of Advocacy remains vacant. Ahead of the President’s Day holiday and Congress’ scheduled spring recess, House Small Business Committee Chair Roger Williams (R-Texas) wrote a letter to President Biden regarding the current vacancy of the Chief Counsel at the Small Business Administration (SBA) Office of Advocacy - one of NSBA’s Priority Issues for 2024. As regulatory requirements continue to grow and affect the bottom line for small-business owners, a fully staffed SBA is more important than ever for its potential to serve the small-business community. For its specific purpose to serve as watchdog against burdensome regulations, the SBA’s Office of Advocacy should be filled by someone who “understands that small businesses need all the help they can get,” Chairman Williams wrote in his letter. NSBA joins Chairman Williams in his call for President Biden to nominate a qualified candidate to fill this crucial vacancy in the Office of Advocacy. Read our official Issue Brief on this important matter, check out our complete collections of Issue Briefs selected at the beginning of a new session of Congress biennially, and follow NSBA as we continue to track the status of this vacancy in Washington.