Senate Banking Committee Chairman Tim Scott has introduced legislation aimed at reducing the regulatory burden on small businesses. The Protect Small Businesses from Excessive Paperwork Act of 2025 seeks to extend the deadline for reporting beneficial ownership information until January 1, 2026. This extension would provide additional time for the U.S. Department of Treasury to educate business owners about new requirements and assess decisions made under the Biden administration.
The bill is supported by several members of the Banking Committee, including Senators Mike Rounds, Thom Tillis, Bill Hagerty, Cynthia Lummis, Katie Boyd Britt, Pete Ricketts, Jim Banks, and Kevin Cramer. Additional support comes from Senators Jerry Moran and James Lankford.
Chairman Scott emphasized the importance of providing small businesses with adequate time and information to comply with federal reporting requirements: “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.”
Senator Tillis expressed concerns about current regulations: “The beneficial ownership reporting requirements of the Corporate Transparency Act (CTA) are excessive and overly burdensome.” He supports delaying these standards until January 1, 2026.
Senator Lummis criticized existing regulations as detrimental to local economies: “Wyoming’s small businesses are the cornerstone of our state’s economy… It’s time for us to dethrone Biden’s unelected bureaucrats.”
Representative Zach Nunn led similar efforts in the House where companion legislation passed unanimously. Nunn highlighted Iowa’s reliance on small businesses: “Iowa’s economy is driven by small businesses – more than half of Iowans are employed by Main Street.”
The Corporate Transparency Act was initially part of a defense authorization act but faced criticism over its implementation. A survey indicated that many business owners were unaware of new requirements, leading to potential compliance costs averaging $8,000 in the first year alone.
