📅 2026 Update: Recent Changes Impacting Small Businesses

Since the original article was published, significant changes have occurred that affect small businesses in the U.S. These updates include new rules from the SBA and DOL, as well as adjustments to compliance dates for important lending regulations. More information from the earlier article continues below.

🏭 SBA Waives Loan Fees for Small Manufacturers

In fiscal year 2026, the U.S. Small Business Administration (SBA) has waived most upfront fees for small manufacturers. This change started on October 1, 2025, and will last until September 30, 2026.

This initiative aims to support small manufacturers by reducing their financial burden when accessing loans.

  • 💰 No Loan Fees: This waiver can help small manufacturers save a significant amount of money when applying for loans.

👷 DOL Proposes New Independent Contractor Rule

On March 3, 2026, the U.S. Department of Labor (DOL) proposed a new rule to clarify the classification of workers as employees or independent contractors. This rule emphasizes economic dependence and factors like control over work and profit potential.

  • ⚖️ Worker Classification: This change could impact how small businesses categorize their workers, affecting taxes and benefits.

📊 CFPB Extends Compliance Date for Lending Rule

The Consumer Financial Protection Bureau (CFPB) extended the compliance date for the Section 1071 Small Business Lending Rule to July 2026. This rule requires certain financial institutions to collect and report data on small business credit applications.

  • 📅 New Deadline: This extension gives businesses and lenders more time to prepare for compliance with this important rule.

🛠️ Current SBA Loan Fees

Effective October 1, 2025, the SBA will not charge upfront fees for 7(a) loans of $1,000,000 or less during fiscal year 2026. This is a notable change compared to previous years, where such fees were common.

  • 🚀 Cost Savings: This can make borrowing more accessible for small businesses looking for funding.

📌 Key Updates Summary

  • 🏭 SBA waives most loan fees for small manufacturers in 2026.
  • 👷 DOL proposes new rules for worker classification.
  • 📊 CFPB extends compliance date for small business lending data collection to July 2026.
  • 🛠️ SBA won't charge upfront fees for 7(a) loans of $1M or less in 2026.

💡 Tips for Small Business Owners

Review the specifics of your situation with your attorney.

📄 Understand the New Loan Fee Structure

Small businesses should familiarize themselves with the SBA’s new fee waiver for 7(a) loans. This can significantly reduce upfront costs and make it easier to secure funding.

🔍 Keep Up with Worker Classification Rules

With the DOL's proposed rule on independent contractors, small business owners should examine how they classify their workers. Understanding these regulations can help avoid potential issues with compliance.

⏳ Prepare for Section 1071 Compliance

Small businesses seeking loans should be aware of the new data collection requirements under the upcoming Section 1071 rule. Preparing now can help ensure compliance by the July 2026 deadline.

📚 Utilize IRS Resources

The IRS provides helpful resources, such as Publication 583, to guide new business owners through the process of starting a business and keeping records. These can be valuable tools for staying organized and compliant.

💰 Take Advantage of Government Support

Explore the SBA's Lender Match portal to connect with lenders who can offer competitive rates. This can make a difference in securing the right financing for your business needs.

🏆 Top Services for Small Businesses Ranked by User Reviews (2026)

This section lists services that provide financial support and assistance to small businesses. The order follows Trustpilot data from October 2026, reflecting user ratings and reviews. Ratings can change, and a higher score does not always indicate a complete picture, as unhappy customers tend to leave more reviews.

🥇 1. Amur Equipment Finance

Amur Equipment Finance has been rated 5.0 on Trustpilot. This company is known for its equipment financing and financial services tailored to small businesses. Some reviewers mention slow response times, which could be a consideration for potential clients.

🆓 Free Government or Nonprofit Help

Small businesses can benefit from the SBA's Lender Match portal, which connects them with lenders that offer competitive rates. Additionally, the IRS provides resources like Publication 583, which assists individuals in starting their business and understanding tax responsibilities.

🔎 Key Comparison Factors

  • 📈 Company reputation and user ratings.
  • 💼 Types of financing options available.
  • ⏱️ Response times for customer service.
  • 💰 Fees and costs associated with services.

❓ Frequently Asked Questions

❓ What are the benefits of the SBA loan fee waiver?

The SBA loan fee waiver allows small manufacturers to save money on upfront costs when applying for loans. This can make it easier for them to secure financing for their operations.

⚖️ How does the DOL's proposed rule affect small businesses?

The DOL's proposed rule clarifies the criteria for classifying workers, which can impact how small businesses handle taxes and benefits for their employees and independent contractors.

📅 When do I need to comply with the Section 1071 rule?

Financial institutions must comply with the Section 1071 Small Business Lending Rule by July 2026. This affects how they collect and report data on credit applications from small businesses.

📝 What is Form 8974 used for?

Form 8974 is used to claim the Qualified Small Business Payroll Tax Credit for increasing research activities. It was revised in December 2024, and businesses should ensure they are using the latest version.

🚀 How can I connect with lenders for my small business?

The SBA Lender Match portal is a useful resource for small businesses looking to connect with participating SBA lenders who can provide funding. This platform can help match businesses with appropriate lenders.

📊 What does Publication 583 cover?

Publication 583 provides guidance on starting a business and maintaining records. It outlines the necessary steps and federal tax responsibilities for new business owners.

⚖️ Recent Cases Relevant to Small Business Law

Recent court rulings have addressed various issues related to small business law, including financing and worker classification.

Explore more recent rulings in the news section: more rulings on the news page.

End of October 2026 Update





What is a Small Business?

The term‘small business’ refers to any type of business model that is privately owned and operated; additionally, all small businesses fall into the established federal size limitations that define what a small business is. 

A small business, according to the Small Business Administration, employs fewer than 500 people; however, other forms of legislation that elucidate on such qualifications will define a small business as any operation with operate with fewer  than 15 people—these size limitations will vary based on what industry the underlying small business operates out of. In addition to the employee base, a small business may be categorized or classified based on assets, gross volume of sales or its overall amount of production.

The general definitions and actions of a small business are regulated based on federal legislation. Typically, the Federal Government encourages the formation of small businesses to augment entrepreneurship and to entice innovation in the competitive market. 

Small Business Act Defined

That being said, the Small Business Act is the predominant legislation that necessitated the aforementioned regulations and that instituted various practices and educational techniques to aid small businesses in carrying out their intended functions. The Small Business Act was the fundamental starting point of the Small Business Administration, which still serves as the critical intermediary and assisting body for all small business owners in the United States.



What is the Small Business Administration? 

The Small Business Administration, which was the focus of the Small Business Act, is a government agency that is responsible for providing assistance and support to all small businesses operating in the United States. 

Although the Small Business Administration does not provide loans directly to small business owners, the Administration, through the passing of the Small Business Act, acts as a guarantor between the borrowing party and the lending bank. The Small Business Administration also streamlines the ability to obtain such funding by facilitating the broker deal between a small business owner and a participating lender.



What is the Small Business Act?



The Small Business Act, which was passed in 1953, outlined the mission of the newly-created Small Business Administration. In addition to creating the Small Business Administration, the Small Business Act required the SBA to guarantee a fair percentage of public or government-structured contracts to various small business owners throughout the country. 

The Small Business Act was passed to maintain and strengthen the United States’ economy by aiding, assisting, counseling and protecting the interests of small business owners and by providing funding to those individuals who were financially crippled by natural disasters.

The Small Business Act instituted through the creation of the SBA, an exchange of information and advice regarding the ability to obtain loans and the qualification standards revolving around government grants and government contracts for women, minorities and veterans. 

The Small Business Act constructed the Small Business Administration to guarantee loans from other lenders and to counsel small business owners with everyday business operations.