Navigating New Regulations: What’s Changing for Small Business

New regulations can feel like one more thing on an already full plate, but staying ahead is one of the easiest ways to protect your business, avoid disruptions, and plan confidently for the year ahead. As lawmakers respond to economic shifts, cybersecurity risks, and a changing workforce, several updates are on the horizon for small businesses in 2026.

Why These Changes Matter

Regulations don’t exist in isolation. They often affect costs, staffing, data security, and how you work with vendors or customers. Understanding what’s changing, and why, can help you adjust early rather than having to scramble later.

1. Strengthened Cybersecurity Standards & Banking Compliance

With fraud and data breaches rising nationwide, expect tighter rules around how businesses store customer data, authenticate logins, and manage digital payments. In addition, banks are refreshing Know Your Customer (KYC) and beneficial ownership requirements, which means your business may need to update client records and verify ownership details more frequently. These compliance steps help protect both your business and your clients.

What to do now:

• Update software regularly
• Implement multifactor authentication
• Train employees to recognize phishing attempts
• Review KYC documentation and ensure beneficial ownership records are current

2. New Payroll & Reporting Requirements

Several states, including Wisconsin, are updating wage-reporting thresholds, contractor classifications, and overtime eligibility.

Your action steps:

• Review your employee classifications
• Check for new minimum-wage or overtime rules
• Ask your accountant whether reporting timelines or formats will change

3. Simple Internal Controls & Audit Readiness

Staying audit-ready year-round doesn’t have to be complicated. Simple internal controls, like regular reconciliations, dual-approval for payments, and secure document storage, can help you catch errors early and demonstrate compliance if audited. Building a compliance calendar and assigning accountability for key deadlines (tax filings, license renewals, KYC refreshes) ensures nothing slips through the cracks.

4. Lending & Insurance Requirements

If you’re planning to borrow or refinance in 2026, be prepared for updated insurance documentation and risk-review processes. These changes aim to make borrowing more predictable and secure for both lenders and business owners.

How to prepare:

• Review your property, liability, and interruption coverage
• Update outdated appraisals or equipment records
• Connect with your banker early in your planning process

5. When to Call the Banker, CPA, or Attorney

Not sure who to call? Reach out to your banker for questions about lending, compliance calendars, or KYC updates. Your CPA is the go-to for payroll, tax, and reporting changes. For legal questions, especially those involving contracts or ownership, consult your attorney. Building a trusted team ensures you’re covered from every angle.

Stay Ahead with Local Support

Regulation changes can feel overwhelming, but you don’t have to navigate them alone. A strong banking relationship, one rooted in understanding your goals, industry, and community, can help you interpret updates and pivot with confidence. If you’d like a second look at your plans for 2026, community banks like ours are here to help you stay compliant, competitive, and prepared.