A Major Blow to Biden – Business Owners Rejoice

President Trump frees millions of small businesses from Biden’s invasive data collection mandate that threatened privacy and imposed unnecessary burdens on American entrepreneurs.

Quick Takes

• Trump administration halts enforcement of the Corporate Transparency Act’s requirement for small businesses to submit personal ownership data to the federal government
• Treasury Department will no longer impose penalties on U.S. businesses for non-compliance, though foreign companies must still adhere to reporting requirements
• President Trump called the Biden-era rule “an absolute disaster for Small Businesses Nationwide” and “an outrageous and invasive” requirement
• The regulation had required approximately 32.6 million small businesses with fewer than 20 employees to register beneficial ownership information

Trump Administration Eliminates Burdensome Reporting Requirements

In a decisive action benefiting millions of small business owners across America, the Trump administration announced it will no longer enforce a controversial Biden-era regulation that required entrepreneurs to submit detailed personal information to the federal government. The Treasury Department’s decision specifically targets the Beneficial Ownership Information (BOI) reporting requirement, which was part of the Corporate Transparency Act passed in 2021. This regulatory rollback represents a significant victory for small business advocates who had repeatedly warned about privacy concerns and unnecessary compliance costs.

The rule had mandated that individuals with ownership or control of small businesses with fewer than 20 employees register their personal information with the Treasury Department’s Financial Crimes and Enforcement Network (FinCEN). While ostensibly designed to combat money laundering and prevent the formation of shell companies for illicit purposes, the requirement was widely criticized as placing an excessive burden on legitimate American small businesses. The Treasury has clarified that while penalties will not be enforced for domestic companies, foreign entities must still comply.

President Trump Champions Small Business Relief

President Trump celebrated the suspension of the reporting requirements on social media, highlighting his administration’s commitment to removing obstacles facing American entrepreneurs. “This Biden rule has been an absolute disaster for Small Businesses Nationwide. The economic menace of BOI reporting will soon be no more,” the President stated, reinforcing his administration’s focus on economic deregulation. The action aligns with Trump’s broader agenda of dismantling what many conservatives view as excessive government intrusion into private enterprise.

“Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. Citizens. This Biden rule has been an absolute disaster for Small Businesses Nationwide. Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.” – Trump

U.S. Secretary of the Treasury Scott Bessent described the policy change as “a victory for common sense” and part of the administration’s “bold agenda to unleash American prosperity by reining in burdensome regulations.” The National Small Business Association, which had been a vocal critic of the reporting requirements, previously characterized the BOI mandate as “a massive burden” for entrepreneurs. The relief from this regulatory pressure is expected to free up small business owners to focus on growth and job creation rather than paperwork compliance.

Regulatory Shift Highlights Differing Priorities

The Corporate Transparency Act had been championed by Democrats and progressive organizations as a necessary tool for law enforcement to track financial crimes. Former Treasury Secretary Janet Yellen had downplayed concerns about the regulatory impact, suggesting it would cost businesses only about $85 each to comply. By January 2024, over 100,000 businesses had already filed their beneficial ownership information with the Treasury. However, the rule faced ongoing legal challenges, including a lawsuit from a small business lobbying group seeking to block the requirement.

“Small businesses are the backbone of our economy, and we need to ensure they have the necessary time and information to comply with reporting requirements from the federal government. This commonsense bill will ensure small businesses are protected and not overly burdened by unclear and unnecessarily complicated regulations – allowing them to focus on serving their customers while following the law.” – Senator Tim Scott (R-SC)

Before the Trump administration’s decision to suspend enforcement, Republicans on the Senate Banking Committee had introduced legislation to extend the reporting deadline for small businesses. Senator Tim Scott emphasized the importance of protecting entrepreneurs from overly complex government mandates. The Treasury Department is now finalizing an Emergency Regulation to formally suspend the rule for American businesses, though it will continue to apply to foreign companies operating in the United States. This decisive action reinforces President Trump’s commitment to cutting government red tape and prioritizing American business interests.