Rep. Pete Stauber of Minnesota’s 8th Congressional District stopped by Bemidji recently to discuss a nationwide problem – the struggle of small businesses.

Stauber attended a listening session on Thursday that was hosted by economic development agency Greater Bemidji. Placing the blame on over-regulation from the federal government, Stauber told local small business owners about what he and other congresspeople are working on in the nation’s capitol.

Whether it’s on a national or local level, the workforce challenges that businesses face have risen in the past few years, due in no small part to obstacles from COVID-19. But Stauber says government-mandated regulations continue placing hurdles to up-and-coming entrepreneurs.

By asking members of the Bemidji community what regulations they find most taxing on their business, many spoke about upkeep of older buildings in the city or the piles of paperwork. This mandated work among others issues, as Stauber claims through data from center-right non-profit American Action Forum, has cost small businesses in the U.S. $201 billion dollars.

At the meeting, Stauber also talked about what he says are issues with Internal Revenue Service funding that could affect business owners. The GOP-controlled U.S. House has sought to stop funding for an increase in IRS staff, with some claiming that the proposed $80 million in funding for about 87,000 new agents would cause more audits for low-to-middle-income business owners.

However, fact-checkers at news outlets like The New York Times and Reuters say this is misleading. The funding would go toward infrastructure and updates to all staffing positions for the next 10 years. And with the increase of IRS agents, the focus would instead shift to higher income brackets.

Overall, to provide more support for rural businesses in what some call “fly-over country,” Stauber has reached out to communities like Bemidji to hear from those most affected. The regulations and red-tape troubles mentioned in the listening session have affected businesses in many different ways, particularly through the height of the COVID-19 pandemic. Now, the work is to continue to grow small businesses post-pandemic.

Stauber, who is on the Small Business Committee in the U.S. House, says he will bring these concerns and ideas to the table. He also serves on the Rural Development, Energy and Supply Chains Subcommittee.

By — Mary Balstad