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The Corporate Transparency Act (CTA) is an unconstitutional law imposing undue burdens on small business. This week, NSBA joined more than 150 prominent trade associations in a letter to House Speaker Mike Johnson (R) urging delay of the Corporate Transparency Act’s (CTA’s) year-end compliance deadline. With the CTA taking formal legal effect this year under the direction of the U.S. Department of Treasury and the Treasury’s Financial Crimes Enforcement Network (FinCEN), new businesses formed any time in 2024 must file beneficial owner information (BOI) reports, including disclosures of personal information on decision makers of their enterprise, within 90 days of formation. Under the current form of the CTA, businesses formed before 2024 will have until Jan. 1, 2025, to file enterprise BOI reports. RELATED | NSBA Sues and Wins Case Against Treasury, FinCEN over the CTA In addition to costly compliance and persistent lack of clarity regarding beneficial owner definitions, NSBA has repeatedly expressed concerns to Treasury and FinCEN related to how the CTA justification to stem money laundering and other financial evasions places undue burdens on small business owners – a position consistently supported by a growing coalition of prominent trade associations. With larger businesses exempt from BOI filings, this year, NSBA won a lawsuit over the CTA in federal court for its unconstitutional justifications and effects. By this victory for small business, NSBA members who were part of NSBA before March 1, 2024, are currently exempt from CTA compliance requirements, including filing BOI reports. Despite a promise to accept the summary judgment ruling in favor of NSBA’s case against the Treasury and FinCEN, the Department of Justice (DOJ) filed an appeal against the ruling on behalf of the agencies, disposition of which remains pending at this time. RELATED | NSBA Supports Additional Means of Delaying, Repealing CTA While NSBA remains optimistic regarding the outcome of the appeal and hopeful the current exemption will be extended to members joining after the March 1 deadline, as well as to all small-business owners, NSBA has continued to pursue additional avenues of action over the CTA, including urging delays of its effects and requirements through Congress.  Currently, there is legislation ( H.R. 9278 ) pending from Rep. Zach Nunn (R-Iowa) supported by NSBA that would delay the CTA by an additional year to reconcile FinCEN and Treasury’s lack of education and engagement with small-business owners regarding its effects.  Read the full trade association coalition letter urging Congress to take action against the CTA by Congressman Nunn’s legislation or additional means, including a complete repeal of the CTA, here , and follow NSBA as we continue or work to protect small business from unconstitutional and unjustifiable rules and regulations.

“The state of taxes in our country is weighing heavily on small businesses...." FOR IMMEDIATE RELEASE Wednesday, Sept. 4, 2024   CONTACT | Molly Day 202-552-2904 | mday@nsba.biz   NSBA Responds to VP Harris Small Business Tax Proposal Washington, D.C. – Vice President  Kamala Harris  announced plans today to bolster small-business growth in the U.S. Among her plans is a proposal to expand the tax deduction for starting a small business from its current level of $5,000 to $50,000. Below is a statement from NSBA President and CEO Todd McCracken. “I welcome Vice President Harris’ focus on America’s small businesses, and any efforts to ease taxes, bolster our position in the federal marketplace and foster new business generation is commendable. “Increasing the start-up tax deduction from $5,000 to $50,000 could be a major benefit to start-ups and could help with cash-flow and capital availability during the stage of the business life cycle when it is most needed. “As with everything, however, the devil is in the details – most small businesses don’t garner significant profits in their first, or even second or third years – and so the length of time within which the deduction can be claimed is critical. I applaud the campaign’s promise to give leeway to claiming the deduction until the business is profitable and urge them to consider a minimum of 5 to 10 years. “The state of taxes in our country is weighing heavily on small businesses, particularly given the 2025 expiration of a number of tax cuts from the 2017 Tax Cuts and Jobs Act. Chief among those: the 20 percent qualified business income deduction for pass-throughs and the income tax rate cuts for individuals. “The expiration of the pass-through deduction will result in a significant tax hike on millions of small businesses. Furthermore, given that more than 83 percent of small businesses pay business taxes at the individual income tax level, the expiration of the individual rate cuts would be yet another tax hike on America’s smallest businesses. “NSBA looks forward to working with both the Harris and Trump campaigns in helping them craft tax policy that will truly help small businesses when it comes to cash-flow hardships; tax-fairness between big and small businesses; and tax simplification.” 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.   ###

Big deals and savings for small business with NSBA's Corporate Partner, IHG Hotels & Resorts!   IHG Hotels & Resorts has unveiled new prototype options for three suite brands: Staybridge Suites, Candlewood Suites, and Atwell Suites. By offering expanded design choices, IHG looks to meet the growing demand for flexibility among guests in the rapidly expanding suites space. Coupled with IHG Business Edge, these suite brands provide business travelers with a multitude of destinations worldwide, ideal for their stays.    IHG Business Edge  offers a tailored, no-cost business travel solution designed for small to medium-sized enterprises (SMEs). It grants travel managers exclusive access to enticing perks, carefully curated educational resources, and comprehensive travel metrics for their companies. Additionally, IHG Business Edge guarantees a discount on both business and personal travel for managers and employees. It also includes an automatic upgrade to IHG One Rewards Silver Elite status after the first IHG Business Edge stay.    Notable components of the new design options include:    Atwell Suites : The guest room will feature flexible spaces for work, lounging, and bar and dining areas.  Staybridge Suites : The introduction of the new Smart Studio room. These guest suites additionally have right-size space through streamlined kitchen equipment and fixtures and optimized millwork cabinetry, while maintaining designated work, sleep and relaxation zones designed for a comfortable, residential-style stay.  Candlewood Suites : The Beacon 4.2 variation builds upon the strong performance of the brand’s most recent design introduced in 2019. These rooms contain a fully equipped kitchen and signature recliner, along with flexible room mixes, and designated social, semi-private and communal lobby working areas.    The new prototype options will be available by Q2 2024, with the first hotels featuring these options expected to open as early as 2025. Currently, the designs will only be open to U.S. hotels, but allow for potential future adoption in Canada, the Caribbean, and Latin America.    With IHG Business Edge, businesses can access guaranteed discounts at over 6,000 participating IHG Hotels & Resorts worldwide.     To sign up for IHG Business Edge, visit businessedge.ihg.com . For IHG Business Edge members, visit businessedge.ihg.com  to log into your portal.

Stay two steps ahead with your small business. Subscribe to receive NSBA’s Real-Time Regulatory Updates. Register here!   SBA announces lenders may accept applications for WCP Program . On Aug. 5, Administrator Guzman announced  that SBA 7(A) lenders may now accept applications for the 7(a) Working Capital Pilot (WCP) Program. The program, announced  in June, “offers a newly structured line of credit, made by 7(a) lenders and backed by the SBA, designed to give a greater flexibility than a traditional term loan.” SBA, VA sign MOU to improve coordination, increase veteran access to capital . On Aug. 12, head of the U.S. Small Business Administration Isabel Casillas Guzman announced that the SBA’s Office of Veterans Business Development (OVBD) and the U.S. Department of Veterans Affairs (VA) Veterans Benefits Administration (VBA) had signed a memorandum of understanding (MOU) to “improve access to self-employment assistance and SBA training and counseling for active-duty service members and service-disabled veterans participating in the Veteran Readiness & Employment Program (VR&E). In announcing the MOU, Administrator Guzman suggested that the enhanced coordination between the two agencies “will enable countless more veterans to access the capital and resources they need to start, build, and grow their businesses.” SBA releases Business Resilience Guide . On Aug. 1, the SBA announced the release of its new Business Resilience Guide  to assist small business owners with disaster preparation. The guide “includes best practices and template formers to help mitigate disasters for America’s entrepreneurs and help them build back stronger.” SBIR Program to announce $54M for commercial microelectronics innovation. On Aug. 9, to mark the two-year anniversary of the enactment of the CHIPS and Science Act, the White House previewed that the Small Business Innovation Research (SBIR) Program will announce nearly $54 million in funding to “help small businesses explore innovative ideas and the commercial microelectronics marketplace.”   The CHIPS and Science Act seeks to reestablish U.S. leadership in semiconductor manufacturing and has generated $400 billion in total semiconductor investments nationwide.   Court issues order stopping noncompete ban enforcement . On Aug. 20, a district court issued an order stopping the Federal Trade Commission (FTC) from enforcing the commission’s Noncompete Rule, a comprehensive ban on new noncompetes with all workers, including senior executives. According to the FTC, the commission “is considering an appeal” and the decision “does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions.” More information on the FTC’s Noncompete Rule is available here .   SBA opens nominations for 2025 NSBW Awards . On Aug. 19, the Small Business Administration (SBA) opened nominations for the 2025 National Small Business Week (NSBW) Awards, an annual recognition of “the exemplary achievements, triumphs, contributions, and resilience of SBA-assisted individuals and businesses that help to drive the American economy.” More information on nominations, all of which must be submitted electronically by 4 p.m. ET on Dec. 5, 2024, is available here .   FinCEN recaps efforts in beneficial ownership reporting requirements education. On Aug. 23, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released its monthly roundup of beneficial ownership reporting outreach activities. FinCEN also previewed its upcoming events to educate small business owners and other stakeholders about the requirements. The roundup and preview of upcoming events are available here .   SBA announces MOU with India to strengthen MSME participation in global marketplace. On Aug. 15,  SBA Administrator Isabel Casillas Guzman announced a new memorandum of understanding (MOU) between the SBA and India’s Ministry of Micro, Small and Medium Enterprises (MSMEs) “to strengthen the two countries’ joint work to promote MSME participation in the global marketplace.” The MOU will facilitate key objectives shared by the U.S. and India including “joint programming to share expertise and best practices on entrepreneurial training, access to capital, [and] trade and export financing.”   SBA to host cyber summit . On Aug. 21, the SBA announced that it will host its free cybersecurity series – the Small Business Cyber Summit – on Oct. 16 and 23. The series will seek to “equip America’s 34 million small businesses with the tools and resources they need to bolster their cybersecurity infrastructure.” Registration information is available here .

Federal agencies and authorities must come together for small business to balance the necessity and hindrances of noncompete and nondisclosure agreements.   On Tuesday, a Texas federal judge blocked a noncompete ban from the Federal Trade Commission (FTC). Under the rule formalizing the noncompete ban, the FTC was looking to provide employees with increased flexibility to quit a job and work for a competitor.  RELATED | NSBA Comments on FTC Noncompete Rules Posing threat to small-business innovation and trade secrets by this increased flexibility, earlier this year, the U.S. Chamber of Commerce brought suit against this ban and was granted summary judgment in its case over the FTC. A basis for the decision against the FTC centered around the judge’s interpretation that the FTC had exceeded its statutory authority in making the rule, further concluding the noncompete ban could cause irreparable harm to businesses and other enterprises, particularly those working in technology innovation and development. The FTC is reportedly considering an appeal of this decision, and case-by-case considerations of noncompete agreements are still able to be adjudicated by the agency. Ahead of the rule publication, in 2023, NSBA submitted formal comments  to the FTC regarding the noncompete ban. RELATED | NSBA Survey on Small Businesses and Noncompetes/Nondisclosures For many small, innovative businesses, noncompete and nondisclosure agreements ensure fair competition against larger companies who have greater ability to lure employees—and their working knowledge of the company—away from a smaller competitor.  NSBA also released a survey on how small businesses utilize noncompete and nondisclosure agreements which shows that the size of the business greatly impacts how likely they are to utilize—and successfully enforce—such agreements. Follow NSBA as we continue tracking the progress of this lawsuit and information on noncompetes from the FTC, and read the noncompete rule here .

Welcome Rachel Grey and her regulatory expertise to support small-business with NSBA! NSBA is pleased to announce its newest staff member, Rachel Grey, NSBA Director of Research & Regulatory Policy. Rachel will be supporting the Government Affairs department through enhanced work in the regulatory arena and bolstering our current research efforts. Rachel joins NSBA from GuidePost Strategies, where she advised private sector clients on federal legislation and regulatory developments. Prior to joining GuidePost, Rachel advised financial services industry clients on regulatory matters at Weiner Brodsky Kider. Rachel received her J.D. from The George Washington University Law School and her B.A. from Colgate University. She is a member of the D.C. Bar. Rachel’s experience is perfect for NSBA’s growing federal advocacy efforts and her expertise will be of great benefit to NSBA’s members and all small businesses across the country.

NSBA applauds Rep. Nunn and the supporters of his bill to reform the Corporate Transparency Act. Recently, Rep.  Zach Nunn (R-Iowa) introduced a bill to protect small business from excessive paperwork, with bipartisan cosponsors,  Reps. Yadira Caraveo (D-Colo.), French Hill (R-Ark.), and Sharice Davids (D-Kan.) The bill would extend CTA filing deadlines to Dec. 31, 2025, as well as enact small-business education and agency oversight accountability programs related to the CTA. RELATED | NSBA Working to Repeal CTA to Minimize Reporting Requirements for Small Business In his announcement on the legislation, Rep. Nunn explained how current federal requirements, like Beneficial Ownership Information (BOI) reports required to be disclosed under the Corporate Transparency Act (CTA), harm small business. Rep. Nunn further pointed to information on small business and the CTA from NSBA President and CEO Todd McCracken, including how “(m)any, if not most small companies have no idea they need to file,” additionally highlighting concerns for increasing costs of legal and accounting resources to ensure compliance with this opaque law. RELATED | NSBA Small-Business Survey – Problems with the CTA for Small Business Under the current deadlines of the CTA, small-business owners who formed their enterprise before Jan. 1, 2024, are required to submit their BOI reports before Jan. 1, 2025, and small-business owners starting their enterprise in 2024 are required to submit their BOI reports within 90 days of formation. In March 2024, a Federal Judge ruled in favor of NSBA in its lawsuit against the U.S. Department of the Treasury and its Financial Crimes Enforcement Network (FinCEN) for their enactment of the CTA. Finding the CTA unconstitutional in its current form, NSBA members as of March 1, 2024, may currently be exempt from reporting requirements compelled by the CTA. Additional litigation is pending on this ruling, and additional information on the appeal from the Treasury and FinCEN can be found here. RELATED | NSBA Priority Issues – Reduce Cumbersome Paperwork for Small Business Read the full text of the bill here, and follow NSBA as we continue supporting productive options to repeal or replace the CTA in our pursuit to protect small business.

Dedicating his life and work to the service of Small Business, NSBA remembers Mr. Ronald Cohen. NSBA is honoring the memory of one of our all-time-greats, Ronald Cohen, who passed away recently. Ron served as NSBA’s—at the time NSBU’s—volunteer president in 1994. He played a critical role in the 1995 White House Conference on Small Business and served on the NSBA board for well over a decade. Ron had a passion for small business. He was a successful small-business owner, founding Cohen & Co., a tax, assurance and advisory services firm in 1977 that today operates in 3 countries and across 7 states in the U.S. Ron believed in the intrinsic benefit of entrepreneurship and how small businesses are integral to the American dream. Ron Cohen served NSBA with integrity, passion and a keen understanding of why it is so important for small-business owners to be engaged in federal policymaking. His impact on NSBA was significant, he was a firm believer in small businesses having a seat at the table, and we are still benefiting from his leadership now three decades later. To donate in Ron's memory, please make your check payable to Cohen Community Foundation and send to Cohen Community Foundation, 1350 Euclid Ave., #800, Cleveland, OH 44115. For questions, please contact Erica Moran.

An NSBA Priority Issue, small business commends Senate supporters of a path forward for this important tax bill. UPDATE | After we alerted our community that Senate leadership was going to try to bring H.R.7024, the Tax Relief for American Families and Workers Act of 2024 to the floor for a vote, 5 months after it was passed in the House by a broad bipartisan majority.  This bill contains a provision that would restore the Sec. 174 R&D tax deduction that would provide much-needed tax relief to high-tech small businesses.  In order to get an up-and-down vote, the Senate requires a vote on cloture to end debate, which requires 60 votes if any Senator objects. Unfortunately, the procedural vote on cloture was defeated this afternoon by a vote of 48-44. largely along party lines, with three Republicans voting "Aye", and 2 Democrats voting "Nay."  While the Sec. 174 R&D provision enjoy bipartisan support, the Senate Republicans have raised objections to certain aspects of the Child Tax Care portion of the bill.  The Senate will now go on recess until after Labor Day.  SBTC will continue to push the Senate to pass a fix to the Sec. 174 R&D Tax deduction, and we will keep you up to date with any changes or developments. *This update is from NSBA's Small Business Technology Council. Learn more about SBTC. In February, bipartisan cooperation in the House helped pass The Tax Relief for American Families and Workers Act, including several key priorities which NSBA has fought for, like allowing Section 174 (R&D) expenses to be retroactively deductible beginning with tax year 2022 rather than amortized over a five-year span. RELATED | PRESS | NSBA Applauds House for Bipartisan Passage of Tax Relief Bill Since then, the $78 billion Tax Relief bill has remained stalled in the Senate; however, this week, after months of NSBA member engagement on the importance of this Act, the Senate is beginning its procedures to allow consideration of the legislation. Senate Finance Chair Ron Wyden (D-Ore.), alongside House Ways and Means Chair Jason Smith (R-Mo.), are leading the revived efforts to move the bicameral legislation. Unfortunately, outlook of passage in the Senate remains unclear, with a cursory vote count showing a majority of Senators still opposing the bill in its entirety. RELATED | NSBA PRIORITY ISSUES THROUGH 2024 For the small-business opportunities the bipartisan bill provides to increase jobs, safely participate in the Small Business Innovation Research program, and afford the investment needed to succeed, NSBA continues to support the Tax Relief Act. Follow NSBA as we continue working with Congress to ensure common sense small-business tax policies, and share your story on how these policies affect your small business with our Voter Voice tool here.

"The excitement over the potential benefits of exporting is not simply anecdotal but is also borne out in the data." FOR IMMEDIATE RELEASE Tuesday, July 30, 2024 Contact | Molly Day 202-552-2904 mday@nsba.biz NSBA Testifies Before Congress on Exporting for Small and Rural Businesses Washington, D.C. – Earlier today, National Small Business Association Senior Director of Government Affairs Reed Westcott testified before the Senate Commerce, Science, and Transportation Subcommittee on Tourism, Trade, and Export Promotion at a hearing titled, “Enabling Rural Businesses to Grow at Home While Competing Abroad.” Westcott, testifying on behalf of NSBA and its international trade arm, the Small Business Exporters Association (SBEA), underscored the vital role small businesses play in their communities and abroad. “The excitement over the potential benefits of exporting is not simply anecdotal but is also borne out in the data,” stated Westcott. “In 2022, NSBA conducted a survey which showed that more than half of currently non-exporting SMEs would be interesting in selling goods and/or services to foreign customers if barriers to entry could be addressed.” Westcott went on to highlight potential fixes that could eliminate or ease those barriers, including: Increase outreach through the ITA’s Rural Export Centers Expand interagency partnerships like S. 4764, the Coordinated Support for Rural Small Businesses Act would do Strengthen the Office of Rural Affairs Harmonize trade rules to ease complexity in trade regulations Embrace and pass trade deals that are transparent and accessible, consistent and predictable, and include support mechanisms. Support existing and new financing mechanisms akin to EXIM Bank for small- and mid-sized exporters “While small and rural exporters face numerous challenges in entering global markets, there are tangible actions Congress can take to support existing resources, simplify rules wherever possible, and ensure the availability of export capital,” stated Westcott, “and NSBA and SBEA stand ready to help with those efforts.” 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 and small business support congressional efforts to reform the Corporate Transparency Act (CTA). On July 25, NSBA, along with a number of other small-business organizations forming the Main Street Employer’s coalition, sent a letter to Congress calling for delay of the Corporate Transparency Act (CTA). RELATED | NSBA Wins in Federal Court for Small Business Over Cumbersome, Opaque CTA Backed by more than 135 groups dedicated to defending small businesses, the letter specifically supports legislation from Sens. Tim Scott (R-S.C.) and James Lankford (R-Okla.), which would provide a one-year delay of the CTA and its new disclosure requirements for all small-business owners. RELATED | NSBA Leads Charge Against CTA for Small-Business Community NSBA has been leading the charge against the CTA since its inception, and, in its most recent lawsuit against Treasury, won a judgement from the U.S. District Court of the Northern District of Alabama citing the CTA as unconstitutional. Additionally, the CTA represents massive data privacy concerns and will have a chilling effect on investment, mentorship and business growth. While NSBA’s legal team pushes forward against the CTA, we will continue to seek every possible legislative pathway to delay and ultimately repeal the CTA to ensure this harmful bill does not harm small business. RELATED | NSBA Supports Action from Congress Over CTA Follow NSBA as we continue working to protect small business from harmful small-business policy, and read our full letter to Congress here.

IHG Hotels & Resorts: Elevating the Guest Experience & Expanding Globally    NSBA is proud to announce a new partnership with IHG Hotels & Resorts, offering significant discounts to NSBA members and friends for all your travel needs.   With a robust portfolio of brands catering to diverse traveler preferences, IHG has been on a strategic trajectory to conquer key markets worldwide. The IHG footprint continues to grow, offering unparalleled experiences to guests around the globe.   IHG offers a diverse portfolio of brands, catering to every traveler's needs, from luxury to budget-friendly options. With IHG Business Edge , customers receive a tailored, no-cost business travel solution designed specifically for small to medium-sized enterprises (SMEs). This program grants travel managers exclusive access to enticing perks, carefully curated educational resources, and comprehensive travel metrics for their companies. Additionally, IHG Business Edge guarantees discounts on both business and personal travel for managers and employees. It also includes an automatic upgrade to IHG One Rewards Silver Elite status after the first IHG Business Edge stay.   Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said: “IHG continues to invest in strategic efforts that strengthen our brand portfolio while building trust and confidence among our guests. We continue to see strong growth in the Americas and around the world, notably among our Suites brands and the Holiday Inn brand family and through the addition of exceptional Luxury & Lifestyle properties and brand debuts in key markets. With more than 4,300 Americas hotels among a more than 6,300 property global portfolio that spans 19 new and iconic brands, we’re excited for the future and well positioned to deliver even greater levels of exceptional guest service.”   Further details on the expansion of IHG brands:   Holiday Inn has over 1,200 hotels globally and 250 properties in its pipeline. The first US Garner hotel opened in Seattle in late 2023 and has since launched in Japan, Mexico and Canada. Garner is now franchise-ready across Europe, Middle East, Asia and Africa (EMEAA) region. IHG expects Garner to reach over 500 open hotels in the next 10 years and 1,000 hotels in the next 20 years in the US alone. Candlewood Suites has a combined open and pipeline estate of over 520 hotels across the Americas. Up to 108 NOVUM Hospitality open hotels (15,334 rooms) and 11 hotels under development (2,369 rooms) are expected to join IHG’s system between 2024 and 2028. Conversion of the hotels to IHG’s system will happen in phases beginning in 2024, with the majority to take place over the next 24 months. This will increase IHG’s global system size by up to 1.9% over the coming years.   With a growing focus on green and low-carbon solutions for business guests, IHG has integrated its commitment to sustainable development into every facet of the guest experience. IHG has launched the "Meeting for Good" program at its hotels, providing guidelines for hosting sustainable meetings and events. These guidelines include eliminating single-use items, reducing food waste, and implementing energy-saving strategies.   With IHG Business Edge, businesses can access guaranteed discounts at over 6,000 participating IHG Hotels & Resorts worldwide.   To sign up for IHG Business Edge, visit businessedge.ihg.com . For IHG Business Edge members, visit businessedge.ihg.com   to log into your portal.