The news desk
Small business and entities
New business formation, SBA lending, IRS and state agency changes, and the scams aimed at LLC owners.
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Business applications rise to 534,947 in September, with likely employers up 1.3%
Census Business Formation Statistics counted 147,331 high-propensity applications, the ones most likely to hire, and project 29,022 new employer businesses within four quarters. New entity formation is holding steady despite tighter credit.
The Tzvi LLC read: A new LLC with no credit history borrows on its owner's personal guaranty, so the entity shields the owner from customers and tenants long before it shields the owner from the bank.
Primary source: U.S. Census Bureau, Business Formation Statistics · Checked Oct 29, 2026
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Small business optimism slips to 97.9 as uncertainty climbs to 90
NFIB’s index fell just below its 52-year average of 98, and its uncertainty gauge rose to 90 against a historical average of 68. Labor quality was the top problem for a third month, and a net 8% of owners paid a higher rate on their latest loan.
The Tzvi LLC read: Most small business loans carry the owner's personal guaranty, so a higher rate on the company's line hits the owner's balance sheet too; the LLC does not shield a debt the owner signed for.
Primary source: NFIB, Small Business Economic Trends · Checked Oct 29, 2026
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SBA 7(a) lending falls to $32.4 billion in fiscal 2026 after the agency tightened underwriting
Loan count and dollar volume both fell by double digits from fiscal 2025, across 56,130 loans, and 504 volume dropped 9% to $7.1 billion. Lenders blame the 2025 rule changes, including a restored 10% equity injection.
The Tzvi LLC read: Business buyers should expect smaller, slower approvals, so an acquisition LLC needs a longer financing contingency in the purchase agreement and the 10% equity injection lined up before it signs.
Reported by: American Banker · Checked Oct 29, 2026
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New SBA rules raise the debt coverage floor to 1.25x and require quality of earnings reports on $3 million deals
SOP 50 10 8.1 applies to loans assigned an SBA number on or after October 1, favors trailing results over projections and sends every change of ownership deal through full underwriting.
The Tzvi LLC read: Buyers using SBA debt to acquire a business, including through a holding company LLC, need clean historical books before they apply.
Reported by: Self Employed · Checked Oct 29, 2026
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Treasury's guidance plan lists 121 projects, including section 199A and partnership audit rules
The 2026 to 2027 Priority Guidance Plan includes 40 projects implementing the 2025 tax law.
The Tzvi LLC read: Items that touch LLC owners include qualified business income regulations, centralized partnership audit rules and S corporation clean-up, which signals where pass-through guidance is coming over the next year.
Primary source: Treasury and IRS, 2026-2027 Priority Guidance Plan · Checked Oct 29, 2026
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Tennessee warns new businesses about a fake certificate of status mailer
The Secretary of State said a group calling itself a compliance division is mailing newly formed businesses and charities, claiming they must buy a certificate to operate, from an address built to look official.
The Tzvi LLC read: A new LLC's filing is public the day it is approved, which is how these mailers find you; pay fees only to the state directly.
Reported by: Action News 5 · Checked Oct 29, 2026
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Colorado flags 12,693 entities as fraudulent in the first month of a new registry law
HB26-1088, effective August 12, lets the Secretary of State flag any entity that names a known fraudulent registered agent and remove filings whose payments are reversed; 10,214 filings were pulled.
The Tzvi LLC read: A bad registered agent can now taint the companies that use it, so choosing one is a real compliance decision.
Reported by: Colorado Secretary of State release, via Yellow Scene · Checked Oct 29, 2026
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The IRS lets businesses download an EIN confirmation online instead of waiting for Letter 147C
The expanded Business Tax Account lets designated officials pull their EIN notice themselves, a common hold-up when opening a bank account for a new company. The IRS list of supported entities names partnerships and corporations and does not name LLCs explicitly.
The Tzvi LLC read: To the IRS an LLC is a partnership, a corporation or nothing at all, depending on how it is taxed, so a single-member LLC that never elected corporate treatment may still be stuck calling for Letter 147C.
Reported by: Journal of Accountancy · Checked Oct 29, 2026
Briefs summarize reporting and official releases in our own words. "Primary source" means the agency, court or company itself; "Reported by" means a news outlet, attributed. Education only; nothing here is legal, tax or investment advice.
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