WASHINGTON, D.C. (April 1, 2025) – Jeff Brabant, NFIB Vice President of Federal Government Relations, testified before the U.S. House Committee on Financial Services at a subcommittee hearing titled, “Following the Money: Tools and Techniques to Combat Fraud.” Brabant delivered testimony on the harmful impact of the Corporate Transparency Act (CTA) and why it must be repealed to protect US businesses from fraud.

Read Brabant’s full testimony here. Watch his opening statement here.

“Data privacy is a significant concern for small business owners. A prime example of this is the Corporate Transparency Act. Under the CTA, small businesses with fewer than 20 employees and $5 million in revenue are required to report their beneficial ownership information to the Financial Crimes Enforcement Network,” said Brabant.

[…]

“Federal, state, local, and international law enforcement, and intelligence agencies can access this information without a subpoena or warrant. Small businesses fear their information will be targeted by criminals, politically motivated individuals, or subject to cyberattacks by our nation’s adversaries, that could expose their personal information to actual criminals and nefarious actors.

[…]

“Absent intervention from the courts, Congress can clean this mess up by passing Chairman Davidson’s Repealing Big Brother Overreach Act. This legislation would repeal the CTA so a future administration could not revive or expand the statute. Congress could also exempt law-abiding U.S. small businesses from the CTA, as the Trump administration has proposed.”

NFIB continues to advocate for Congress to permanently repeal the law that established BOI reporting requirements, and for the Financial Crimes Enforcement Network (FinCEN) to immediately destroy all BOI data already submitted by U.S. small businesses. NFIB’s lawsuit against BOI reporting is still active in federal courts.

###

For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.