NFIB’s Legal Center works to keep our members informed about the most pressing legal and regulatory issues affecting small businesses. Each month, we receive numerous inquiries from our members, and here we’re sharing the top three questions that you have asked about recently:
- SBA EIDL Loans;
- Beneficial Ownership Information Reporting; and
- The U.S. Department of Labor’s New Overtime Rule.
1. SBA EIDL Loans
Many of our members have asked about the status of their SBA Economic Injury Disaster Loans (EIDL). As a reminder, since January 1, 2024, the U.S. Treasury has now taken over the handling of a vast majority of unpaid EIDL loans. This transition means that if you are delinquent in your EIDL loan repayment, there is a chance collection has either been sent to Treasury, or you have received a notice that it will soon be. While this may cause concern, there are still steps you can take if you are unable to make loan repayments on schedule.
- Hardship Accommodation: The SBA is still offering hardship accommodation plans for businesses that are struggling with repayment. If you are facing financial difficulties, reach out to the SBA immediately to inquire about eligibility.
- Negotiating with Treasury: If your unpaid loan has been deferred to Treasury, it is critical to get in touch with the department as soon as possible to negotiate a payment plan. Proactive communication can prevent further penalties or collection actions.
- Loan Recalling: If you believe that your loan was wrongly sent to the Treasury (i.e., you are not delinquent in repayment), you can request that the loan be recalled to the SBA for reprocessing. This can help ensure that any errors are corrected and that you’re working with the right agency moving forward.
2. Update on Beneficial Ownership Information (BOI) Reporting
Another hot topic this month has been the BOI Reporting requirements under the Corporate Transparency Act (CTA). We know many of our members are concerned about the potential impact of this onerous reporting rule.
NFIB has taken a firm stance against the CTA and the BOI reporting by joining a legal challenge as a party plaintiff. However, the case is still pending, and there is no indication when the court will rule. Rest assured, NFIB is fighting for our members’ interests, and we will provide further information as soon as it becomes available.
In the meantime, we strongly encourage all members to contact their congressional representatives to express their opposition to the CTA. Legislative pressure is one of the most effective ways to push back against these burdensome regulations, and every voice counts.
3. U.S. Department of Labor’s New Overtime Rule
The U.S. Department of Labor (DOL) recently finalized a rule change that will significantly affect small businesses by altering the salary threshold for overtime pay eligibility under the Fair Labor Standards Act (FLSA).
Under the new rule, salaried employees will have to earn significantly higher salaries to be exempt from overtime pay requirements:
- July 1, 2024: The salary threshold increased to $43,888 per year. Employees earning less than this amount are now eligible for overtime pay.
- January 1, 2025: The threshold will jump again to $58,656, further expanding the pool of employees eligible for overtime.
- Further Increases: By July 1, 2027, DOL will recalculate the salary threshold and make adjustments every three years thereafter.
This rule change could have significant ramifications for small business owners. Businesses may need to reclassify employees who have long been exempt from overtime pay or face the challenge of issuing substantial salary increases to avoid overtime costs. Either option could place a financial strain on small businesses.
NFIB has opposed this rule from the beginning and is preparing to join a legal challenge against it. We believe that DOL lacks the authority to issue a salary-level test for exempt employees, and we are committed to fighting this government overreach.
We encourage all NFIB members to continue to reach out to the Legal Center with any issue or question concerning their small business. You can reach the legal center by emailing [email protected].
