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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.

Join us for a webinar with Judy next Tuesday – Oct. 17 at 2:00 p.m. EDT! Presented with one of our newest corporate partners, join NSBA and Judy Security on Tuesday, Oct. 17 at 2:00 p.m. EDT for a FREE webinar on the what, how, and why of cybersecurity insurance. In this informative webinar, we will address the pressing issue of cybersecurity for small business. Given that over 65 percent of small- and mid-sized businesses have experienced cyberattacks in the past two years, this webinar couldn’t be more timely. Raffaele Mautone, CEO and Founder Judy Security will 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. During this session, you'll gain valuable insights into selecting the right cyber security insurance for your company, understanding the comprehensive coverage cyber liability insurance provides, and establishing a step-by-step approach to fortify cybersecurity and compliance within your organization. Don't miss this opportunity to protect your business in an increasingly digital world. Join us to enhance your cyber resilience – REGISTER TODAY! Meeting link here.

Approximately 40 days remain for Congress to come up with a plan to fund the government. Much to the surprise of most of the nation, Congress narrowly averted a government shutdown mere hours before it was set to start at 12:00 a.m. on Sunday morning, Oct. 1. The National Small Business Association (NSBA) applauds both parties and houses of Congress for taking the needed steps to prevent a potentially disastrous shutdown. Government shutdowns can be disastrous particularly for the millions of small businesses that do business directly with the federal government. This week, those contractors can rest a little easier. Unfortunately, unfortunately this latest agreement only gives Congress another 45 days to iron-out a long-term spending deal. NSBA President and CEO Todd McCracken stated, “The hard-fought compromise this weekend buys us all a little more time and we are thankful for it, however this kind of crisis legislating does little to provide much-needed predictability, stability and long-term confidence for small businesses and their employees.” During a shutdown, not only are federal contractors impacted, every business in their supply chain, their employees and their families all feel the pinch of a government shutdown. Furthermore, small businesses seeking assistance, lending and resource programs government-wide face long delays due to the absence of staff and inevitable backlogs. The fall-out of the bipartisan agreement that former House Speaker Kevin McCarthy (R- Calif.) signed off on, however, resulted in his ouster as Speaker. NSBA will continue monitoring the situation and will apprise you of any breaking changes. Please click here to read NSBA’s letter to Congressional leaders warning against a shutdown.

Congrats to Marilyn and her continued success in supporting small business! The SBA recently held a Regulatory Fairness Board Hearing. Convening for the first time since 2020, 17 new members joined 20 current members of the Board, including NSBA Past Chair, Marilyn Landis. During the meeting, members — small business owners, operators or officers — engaged in discussion and shared concerns with SBA Administrator Guzman, Deputy SBA Administrator Dilawar Syed, and agency leaders related to matters of federal regulatory issues for small businesses. Bringing diverse experiences, perspectives and business backgrounds to advance regulatory fairness, Board members advise the National Ombudsman and Assistant Administrator for Regulatory Enforcement Fairness on small business matters related to federal regulatory enforcement actions and report instances of unfair, excessive enforcement actions taken by federal regulators. Appointment terms are set for three years. Members of the advisory committee do not receive a salary, nor are they eligible to officially represent the SBA, and a complete list of this year’s Board can be found here. Additional information about the Regional Regulatory Fairness Boards can be found here.

NSBA’s own ML Mackey continues to demonstrate her devotion to small-business advocacy across the nation. The U.S. Small Business Administration (SBA) has announced 15 appointees to a new committee, the “Invention, Innovation, and Entrepreneurship Federal Advisory Committee” (IIEAC), including NSBA Board of Trustee, ML Mackey, CEO of Beacon Interactive Systems in Massachusetts. Supported by a distinguished and diverse group of small-business leaders, the IIEAC’s main objective is to promote, expand and strengthen the innovation ecosystem. This includes innovation commercialization, lab-to-market translation and cultivating a more equitable federal innovation ecosystem based in inclusivity. The SBA’s intent is to work with the advisory committee to collect insights and recommendations in helping to build policies and programs that foster American ingenuity and economic competitiveness. For her continued commitment to supporting small business, NSBA thanks ML Mackey and is looking forward to supporting the IIEAC as it aims to support the small-business community. Members of the IIEAC’s Inaugural Class IIEAC Chair: Philip Gaskin, Executive Fellow and Strategic Advisor to the CEO, Ewing Marion Kauffman Foundation (Mo.) IIEAC Vice Chair: Julie Lenzer, Chief Innovation Officer, Advanced Regenerative Manufacturing Institute (N.H.) Eric Adolphe, CEO & Founder, Forward Edge-AI, Inc. (Texas) Dr. Ramon Barquin III, Chairman of the Board, Atlantic University (Puerto Rico) Richard Carroll, Chairman, Innovative Defense Enterprises (Fla.) Dr. Dedric Carter, Vice Chancellor for Innovation & Chief Commercialization Officer, Washington University in Saint Louis (Mo.) Dr. Carol Dahl, Board Member, VentureWell, VertueLab, and Washington Research Foundation; Trustee, Wisys (Wash.) Colleen D. Egan, President and CEO, Illinois Science and Technology Coalition (Ill.) ML Mackey, CEO, Beacon Interactive Systems (Mass.) Andrew McCandless, Chairman and CEO, Bascom Hunter (La.) David McFeeters-Krone, Principal, Intellectual Assets (Ore.) Dr. Sally Morton, Executive Vice President, Arizona State University’s Knowledge Enterprise (Ariz.) Dr. Jake Reder, CEO, Celdara Medical (N.H.) Dr. Jenny Servo, President, Dawnbreaker (N.Y.) Timothy Tiemann, Managing Director of Innovation Programs, California State University Northridge (Calif.)

Decisions from other court cases are impacting how the SBA is able to process 8(a) applications. On Sept. 29, the U.S. Small Business Administration (SBA) reopened applications for its 8(a) Business Development Program (8(a) Program). Supporting small-business opportunities for more than 50 years, the 8(a) Program is dedicated to making contracting with the U.S. government more accessible for small businesses.  Recently shuttered by an injunction that has since become narrowed, the SBA has resumed acceptance of these critical applications for small-business owners providing critical products and services to advance agency missions. Although 8(a) Program application submissions are resumed, the SBA is still waiting for a final ruling on the previous injunction matter stemming from a ruling in another case on how certain demographics factors may be considered for certain applications and admissions. NSBA commends the SBA for working to create as many opportunities for small business as possible.  Follow us as we continue tracking developments for the 8(a) Program.

FOR IMMEDIATE RELEASE Sept. 27, 2023 Contact: Molly Day 202-552-2904 mday@nsba.biz A Government Shutdown Harms Small Business Washington, D.C. – The National Small Business Association (NSBA) is urging lawmakers to avoid the political theatrics behind a government shutdown which could spell disaster for America’s smallest businesses. Millions of small businesses do business directly with the federal government and a shutdown would mean they won’t get paid—regardless of what services and goods they’ve already supplied. Furthermore, government shutdowns have historically succeeded in only two things: weakening the U.S. economy and confidence in our elected officials. Below is a statement from NSBA President and CEO Todd McCracken. “While Members of Congress and their staff will, in all likelihood, continue to get paid, millions of small-business federal contractors and subcontractors will be impacted by contract delays, stoppages and cancellations. The trickle-down effects cannot be understated: every business in their supply chain, their employees and their families WILL feel the pinch of a government shutdown – they always do. “If lawmakers fail to keep the government running, they should, at a minimum, support measures similar to those extended to federal employees to “make whole” any federal contractor impacted by a shutdown. “Small-business programs, such as those under the U.S. Small Business Administration (SBA), particularly their lending programs, will begin to experience long delays due to the absence of staff and inevitable backlog of approvals. “These backlogs and delays have real-world implications: forcing capital-strapped small-business owners to choose between hiring an employee or providing health insurance; or forcing the smallest of businesses to spend money they don’t have on accountants to provide the assistance typically provided by the IRS. “A small handful of elected officials are manufacturing a crisis out of partisan discord with a focus solely on grandstanding. This is unfair, unreasonable and unacceptable.” Please click here to read NSBA’s letter to Congressional leaders. Celebrating more than 85 years in operation, NSBA is a member-driven 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 and follow us at @NSBAAdvocate. ###

Mere hours remain for lawmakers to come to an agreement on spending. As the deadline to pass some kind of Continuing Resolution (CR) to continue funding the government past Sept. 30—this Saturday—approaches, lawmakers still find themselves at an impasse with no clear path forward. House Speaker Kevin McCarthy (R-Calif.) still does not have the votes to pass—or even consider—a CR that would pass muster in the Senate and the conservative Freedom Caucus continues to dig-in, demanding 12 individual appropriations bills, each with deep spending cuts and individual hot-button provisions that would be dead-on-arrival in the Senate. Earlier today, NSBA sent a letter to Congress warning that the political theatrics behind a government shutdown could spell disaster for America’s smallest businesses. Millions of small businesses do business directly with the federal government and a shutdown would mean they won’t get paid—regardless of what services and goods they’ve already supplied. Furthermore, government shutdowns have historically succeeded in only two things: weakening the U.S. economy and confidence in our elected officials. Below is a statement from NSBA President and CEO Todd McCracken: “While Members of Congress and their staff will, in all likelihood, continue to get paid, millions of small-business federal contractors and subcontractors will be impacted by contract delays, stoppages and cancellations. The trickle-down effects cannot be understated: every business in their supply chain, their employees and their families WILL feel the pinch of a government shutdown – they always do. If lawmakers fail to keep the government running, they should, at a minimum, support measures similar to those extended to federal employees to “make whole” any federal contractor impacted by a shutdown. Small-business programs, such as those under the U.S. Small Business Administration (SBA), particularly their lending programs, will begin to experience long delays due to the absence of staff and inevitable backlog of approvals. These backlogs and delays have real-world implications: forcing capital-strapped small-business owners to choose between hiring an employee or providing health insurance; or forcing the smallest of businesses to spend money they don’t have on accountants to provide the assistance typically provided by the IRS. A small handful of elected officials are manufacturing a crisis out of partisan discord with a focus solely on grandstanding. This is unfair, unreasonable and unacceptable.” Please click here to read NSBA’s letter to Congress. Stay tuned to NSBA for the latest updates on the potential government shutdown.

Updates and opportunities with the SBA. With natural disasters causing lethal and economic destruction, particularly to small businesses, the U.S. Small Business Administration’s (SBA’s) Office of Disaster Recovery and Resilience (DRR) is partnering with the Federal Emergency Management Agency’s (FEMA’s) Office of Business, Industry, and Infrastructure Integration (OB3I) to lead discussions on disaster recovery and resiliency for businesses. Recently hosting a forum on promoting coordination and partnerships with American small businesses throughout disaster periods, OB3I and DRR are focused on supporting preparedness, response, and recovery of the small-business community with disaster strikes. For more information on securing support for your small business after a disaster, visit the SBA’s Disaster Loan Assistance portal here, and, to stay in touch with FEMA, join the National Business Emergency Operations Center (NBEOC) by emailing a completed membership form to NBEOC@connect.gov. Pivoting to happier days of small-business ownership, the SBA has also announced opening of its applications for the 2024 National Small Business Week (NSBW) Awards. From mom-and-pop shops to innovative startups, small businesses are the backbone of our nation’s economy, and NSBA is proud to support opportunities for small-business owners to be recognized for their tireless work and efforts. RELATED | Finalists Announced for NSBA's Small Business Advocacy Awards 2023 To nominate a small business owner in your area or download related forms, criteria, and guidelines, visit sba.gov/nsbw. All nominations must be submitted electronically by 4:00 p.m. ET on Dec. 7, 2023. The awards will be presented during the NSBW Awards ceremony in Washington, D.C., from April 28-29, 2024.

Efforts to prevent the Corporate Transparency Act (CTA) from going into effect have ramped up in recent weeks. Yesterday, NSBA sent a letter to the House Committee on Financial Services Chair Patrick McHenry (R-N.C.) urging a delay and ultimately repeal of the Corporate Transparency Act (CTA) and called upon all lawmakers to support the Protecting Small Business Information Act of 2023 (H.R.4035). Additionally, the lawsuit NSBA has filed against the Department of Treasury and Financial Crimes Enforcement Network (FinCEN) is moving forward with the Judge in the case setting October 30 as the date for oral arguments. RELATED | NSBA Files Suit Against CTA on Behalf of Small-Business Owners Everywhere The CTA was signed into law Dec. 2020 and is set to go into effect January 2024 for all new business formations. This law will require ONLY businesses with fewer than 20 employees to disclose owners’ information to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Contrary to its stated intent, the CTA has become an administrative distraction that will force millions of hours and upwards of $5.7 billion to be spent on lawyers and annual reporting. Furthermore, this paperwork burden is redundant - banks are already collecting the information FinCEN is seeking through the Customer Due Diligence (CDD). Stay tuned to NSBA for updates on the CTA.

More money, less problems for small business. On Wednesday, Sept. 27, the House Small Business Committee will hold a hearing on recouping stolen pandemic funds at 10:00 a.m. ET. With hundreds of millions estimated stolen as part of fraud during the pandemic, NSBA applauds agency efforts to recoup these funds and supports the oversight efforts on behalf of the House Small Business Committee. This hearing is an important step in ensuring accountability and fund recovery is a top priority. Watch the hearing here. RELATED | DOJ Continues Efforts to Recover Stolen COVID Funds Related to funds for small businesses, recently, the U.S. Small Business Administration (SBA) announced growth accelerator fund awards of $150,000 to 35 partnerships across national priority areas. These awards are designed to help advance equitable investment in innovative startups and high-growth small businesses across several priorities, including National Security & Global Competitiveness, Domestic Manufacturing and Production, Climate and Renewable Energy, and Underserved Communities. Learn more about each Growth Accelerator Fund Competition partnership in the public directory here.

More time is needed to analyze and respond to the proposed changes for overtime pay exemptions. This week, NSBA joined the Partnership to Protect Workplace Opportunity (PPWO) and 107 organizations on a letter to the Department of Labor (DOL) requesting a 60-day extension to the comment period for its proposed changes to “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 $55,068 as the annual salary threshold. Employees below this new level working more than 40 hours in a workweek will remain eligible for overtime pay. Given the magnitude of this rule, an additional sixty days is reasonable and will ensure WHD will receive meaningful information, such as more accurate and informative comments and better understand how the economy and workers will be impacted by the changes being considered. Read the full letter here, submit comments here, and follow NSBA as we track the latest from the DOL.