Small Business News
Small Business News will be a regularly updated feature on the National Business Association website. We will cover topics and provide information that impacts small businesses at a variety of levels. We hope you will visit the Small Business News page regularly.
Demystifying Beneficial Ownership Reporting: A Guide for Small Businesses Understanding Beneficial Ownership Reporting
Beneficial Ownership Reporting is a government initiative aimed at increasing transparency in business operations. In simple terms, it’s all about identifying the individuals who ultimately own or control a company, known as “beneficial owners.” This information is intended to help prevent illegal activities like money laundering and fraud. While it’s believed to be a crucial step toward a fair and accountable business environment, it can sometimes feel like a burden for small businesses. In addition, most small business owners have no idea what BOR reporting is or when it starts. Recently, the NFIB polled their small business members and 90% had never heard of it. BOR reporting goes into effect January 1, 2024.
Who Must Report?
Beneficial Ownership Reporting applies to a range of businesses, mostly small ones. If you own or manage a business, whether it’s a sole proprietorship, partnership, corporation, or LLC, you may be required to report beneficial ownership information. The goal is to ensure that no one can hide behind a corporate veil to engage in illicit activities. If your business has more than 20 full time employees, over $5.0 million in sales and operations in the US, you do not have to file. In addition, entities that do not register with their state such as sole proprietors, general partnerships and trusts are not required to file. If your business does not fit these parameters, you should expect to be required to file.
When Does Reporting Start?
The reporting requirements vary depending on a few different factors. Reporting will typically be done at the time of business formation or registration. If your business was started before January 1, 2024, your reporting deadline is January 1, 2025. Businesses will be asked to update their reporting based on certain events, like ownership changes or significant alterations in the businesses structure. Reporting will typically be a one-time event unless there are ownership changes.
How Do Small Businesses Report?
Reporting may sound daunting, but it doesn’t sound difficult. It will be done electronically through the Treasury’s FinCEN website using a yet to be created system. The final reporting questionnaire is not available but in draft form it is 8 pages and roughly 50 questions. It appears that the information requested will be easy to retrieve by even a fairly unorganized business. The good news it will be a one-time event for most businesses.
Where Can Small Businesses Get Help?
Navigating the world of Beneficial Ownership Reporting will be challenging for some and an intrusion for many. Few want to add new reports to our already bureaucratic/burdensome system of reporting. Know that there are resources available to assist you. Consider reaching out to government agencies, legal experts, or professional services specializing in compliance. Many organizations offer guidance and support tailored to small businesses, ensuring you meet your reporting obligations without undue stress. The NBA will provide additional details and links to quality resources as the reporting process becomes more defined.
Finally, Beneficial Ownership Reporting may be a vital step toward a more transparent and accountable business landscape. While it may seem like a burden, we hope that small businesses can navigate the process with relative ease, thanks to user-friendly reporting systems and available support. By complying with these regulations, small businesses can contribute to a fairer and more just business environment that benefits everyone.
SBA: Seven Decades of Support for Small Businesses
Seventy years ago, the United States Small Business Administration (SBA) was founded with a vision to uplift and support the backbone of the American economy – small businesses. Over the decades, the SBA has played a pivotal role in fostering entrepreneurship, job creation, and economic growth. As the SBA commemorates its 70th anniversary, it is an opportune time to reflect on its remarkable journey, assessing the impact it has had on small businesses across the nation.
One of the most significant contributions of the SBA to small businesses has been its role in facilitating access to capital. The agency offers a variety of loan programs designed to cater to the unique financial needs of small enterprises. The flagship 7(a) loan program, for instance, has provided countless small businesses with much-needed funding, enabling them to start, expand, or recover from setbacks. These loans often have more favorable terms and lower down payment requirements than traditional loans, making them accessible to businesses that might otherwise struggle to secure financing.
The SBA’s impact is perhaps most pronounced in its role as an engine of innovation and job creation. Small businesses have historically been a wellspring of fresh ideas, driving technological advancements and pioneering new industries. The SBA has recognized this potential and actively supported innovative enterprises through programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These initiatives allocate a portion of federal research and development funds to small businesses, enabling them to bring groundbreaking concepts to market and solidify their position as drivers of economic progress.
The SBA’s commitment to entrepreneurial development has been instrumental in equipping small business owners with the skills and knowledge needed to thrive in a competitive landscape. Through initiatives like Small Business Development Centers (SBDCs), SCORE, and Women’s Business Centers, the SBA offers mentorship, counseling, and training to entrepreneurs. These resources help business owners navigate challenges, refine their strategies, and capitalize on opportunities for growth.
The SBA has also been a driving force behind helping small businesses secure government contracts. Government contracts can provide a steady stream of revenue and opportunities for expansion. Through programs like the 8(a) Business Development program and the Women-Owned Small Business Federal Contracting program, the SBA levels the playing field for small businesses, ensuring they have a fair shot at competing for and winning government contracts.
As societal attitudes have evolved, so too has the SBA’s approach to fostering diversity and inclusion within the realm of entrepreneurship. The agency has actively worked to break down barriers that have historically marginalized certain groups, such as women, minorities, veterans, and individuals with disabilities. Through initiatives like the 8(a) Business Development Program and the Women-Owned Small Business (WOSB) Federal Contracting Program, the SBA has provided targeted resources and opportunities, leveling the playing field and allowing underrepresented entrepreneurs to thrive.
In recent years, the SBA has redoubled its commitment to promoting equality by prioritizing equitable distribution of resources and support. This has not only enriched the small business landscape but has also contributed to a more inclusive and representative business community, which better reflects the diversity of the American population.
In times of crisis, the SBA has been a lifeline for small businesses facing natural disasters or economic downturns. The agency provides disaster assistance loans that enable businesses to recover, rebuild, and continue serving their communities. This support not only helps individual businesses but also contributes to the overall resilience of local economies.
The SBA’s ability to endure and remain relevant for 70 years is a testament to its adaptability in the face of evolving challenges. From economic recessions to the unprecedented disruptions brought about by the COVID-19 pandemic, the agency has consistently risen to the occasion, devising innovative solutions to meet the ever-changing needs of small businesses.
During the pandemic, the SBA played a central role in distributing crucial financial lifelines, such as the Paycheck Protection Program (PPP) loans, which helped countless small businesses weather the storm and retain their employees. The agency’s swift response and flexibility demonstrated its unwavering commitment to the well-being of the nation’s entrepreneurial backbone.
As the Small Business Administration commemorates its 70th anniversary, its legacy shines brightly as a beacon of support, empowerment, and resilience. Through seven decades of challenges and triumphs, the SBA has nurtured a dynamic ecosystem of small businesses that continue to drive economic growth, innovation, and job creation. As the business landscape continues to evolve, the SBA remains a steadfast partner to entrepreneurs, providing the resources and expertise needed to navigate the complexities of entrepreneurship.
Looking ahead, the SBA’s role in shaping the future of small business remains as crucial as ever. By embracing technological advancements, cultivating diversity and inclusion, and adapting to emerging trends, the agency is poised to lead small businesses toward new heights of success in the decades to come. As we celebrate the SBA’s 70th anniversary, let us recognize the indelible mark it has left on American entrepreneurship and eagerly anticipate the positive impact it will continue to have on small businesses and the broader economy.
National Small Business Week 2023 May 1-7, 2023
The National Business Association was a regular sponsor and patron of the SBA’s National Small Business Week activities through the late 1980’s, 90’s and 2000’s. We are pleased to bring you information regarding Small Business Week 2023.
We encourage you to attend the “Virtual Summit” hosted by the SBA and SCORE May 2 – May 3, 2023. The Virtual Summit is free and offers opportunities to learn new business strategies, meet other business owners and chat with industry experts! The 2-day, action-packed event will include educational sessions, online business resources, and expert speakers.
https://vevents.virtualtradeshowhosting.com/event/NSBWVirtualSummit/register?mcc=SBA
Background
National Small Business Week is an annual celebration of the contributions made by small businesses to the economy of the United States. This week-long event is designed to recognize the vital role that small businesses play in creating jobs and driving economic growth. National Small Business Week 2023 is set to take place from May 1-7, and it promises to be an exciting and informative event that will offer entrepreneurs and small business owners a wealth of resources and opportunities to help them succeed.
The Small Business Administration (SBA) is the organization responsible for organizing and promoting National Small Business Week. The SBA has been serving the needs of small businesses for over 65 years, providing guidance and support to entrepreneurs and small business owners across the country. National Small Business Week is just one of the many ways that the SBA helps small businesses succeed.
During National Small Business Week 2023, a variety of events and activities will take place that are designed to help small business owners learn new skills, connect with other entrepreneurs, and access valuable resources. One of the highlights of the week is the National Small Business Awards ceremony, which recognizes outstanding small businesses from across the country in a variety of categories.
For more information regarding National Small Business Week 2023 follow the links below.
https://www.sba.gov/national-small-business-week https://www.sba.gov/national-small-business-week/awards
Small Business News: 4/3/23.
There are many challenges and issues facing Congress. Focusing on those that impact the self-employed, entrepreneurs and small business owners leads us to point out HR 1, the Lower Energy Costs Act. Energy costs have a significant impact on the success or failure of a small business. Utility costs, delivery costs, supply chain, travel, and commuting costs for employees are all impacted. Learn more about HR 1, the Lower Energy Cost Act here.
https://www.congress.gov/bill/118th-congress/house-bill/1
HR 1 has passed the House and now moves on to the Senate. Please consider contacting your Senator’s office and voice your opinion for or against this important legislation. You can find contact information for your US Senator or Representative here: https://www.congress.gov/members/find-your-member
NBA Small Business News: Background
Small Business News is an ongoing feature within the National Business Association website. The goal of Small Business News is to provide current information regarding important issues or changes in law, policy, or rules at the federal, state, and local level. We intend to provide this information without bias.
Of course, we cannot possibly keep up with every issue in every state, county, or municipality, not even every issue at the Federal level. We encourage you to engage with your local community, state and at the federal level by subscribing to relevant newsletters, email distribution lists or reports provided by your elected representatives, your City Council (or other similar governing body), or your Chamber of Commerce. We encourage you to follow them on Twitter or the social media platform that you prefer. The point is to be aware of what is happening that might impact your business or your family. When an issue is important to you or impacts you negatively, engage, send an email, make a phone call, attend a meeting, or write your elected representative and share your views. A Democracy works best when everyone participates and communicates.
Here are a few examples of organizations, email newsletters and social media accounts that you might consider following. Your state and local governments likely offer similar opportunities, and we encourage you to follow up and check them out.
The Small Business and Entrepreneurship Council: sbecouncil.org, Twitter @sbecouncil
Small Business Roundtable: smallbusinessroundtable.org, @SmBizRoundtable
The Small Business Majority: smallbusinessmajority.org, Twitter @ SmlBizMajority
U.S. Chamber of Commerce: uschamber.com, Twitter @USChamber
U.S. Black Chamber of commerce: usblackchambers.org, Twitter @usblackchambers
U.S. Hispanic Chamber of Commerce: ushcc.com, Twitter @ushcc
U.S. House Small Business Committee: smallbusiness.house.gov, Twitter @housesmallbiz
U.S. Senate Small Business Committee: sbc.senate.gov, Twitter @SmallBizCmteGOP
The 118th United States Congress convened on January 3, 2023. Many believe that “gridlock” will be a common word used when describing the 118th Congress with Democrats controlling the Executive Branch and the Senate and Republicans controlling the House. Clearly, compromise will be necessary to move solutions to many pressing challenges and problems through to a resolution.
We will watch carefully as the 118th Congress convenes and hope to keep you informed on the most critical issues facing self-employed individuals, small business owners and entrepreneurs. We also try to highlight a few state or local issues and encourage you to be a voice for your business at those levels.
President Biden has delivered his second State of the Union address to Congress and the Nation. In his speech the President congratulated the Vice President for her work making capital more accessible to small business owners. He also suggested that starting a small business was an act of hope. We agree, starting a business is an act of hope that takes guts and bravery. Small business owners are risk takers like the early pioneers and settlers. Small business owners create jobs, communities, economic empowerment, and wealth for themselves and others. They are the backbone of the American economy and of the communities in which we live.