SBAC State & Federal Agenda Policy for Illinois Small Businesses

2026 Legislative Agenda

State and Federal

The SBAC provides small businesses with a powerful and unified voice at the local, state, and federal levels. Once enacted, the state and federal reforms below will dramatically improve the small business climate in Illinois.

Health insurance premiums are skyrocketing for small businesses, making it increasingly challenging for them to offer quality and affordable health insurance. Half of businesses with 3-49 workers cannot afford to provide health insurance to their employees. The median proposed 2026 premium increase among small group insurers is 11%. For the ACA marketplace, that number is 18%.

Recognizing that the rising cost of health insurance has a significant impact on small business owners and their employees, the SBAC has formulated a comprehensive, non-partisan Small Business Health Insurance Agenda. Together, these reforms can help advance policies aimed at reducing the cost of health insurance for small employers and entrepreneurs.

Small Business Health Insurance Tax Credit

This legislation will reward small businesses that offer HRAs to their employees. Small businesses use HRAs to provide their employees with the money to purchase health insurance, creating cost predictability and reducing administrative burden.

Prescription Drug Affordability Board

This legislation will create a Prescription Drug Affordability Board, which will place guardrails around high-cost drugs. A PDAB will establish upper payment limits on excessively priced drugs, lowering health insurance costs and improving worker health.

Association Health Plans Act

This legislation will help self-employed individuals and small businesses join together for affordable, high-quality healthcare coverage. AHPs will give small businesses the buying power they need to obtain health insurance at the lowest possible cost.

Patients Deserve Price Tags Act

This legislation would require providers and insurers to post the actual cost of medical care. Transparency will allow small business owners and their employees to compare prices, exposing instances where prices are inflated and lowering costs.

Our Other Initiatives:

Data-Driven Consolidation Act

This legislation will create a Division of Analytics and Consolidation in the Office of the Comptroller. Transparency and data analytics will help constituents make informed decisions about government consolidation, reducing their property taxes.

Citizens Empowerment Act

This legislation will allow citizen referenda to consolidate units of local government. As constituents of local government and recipients of local services, constituents are in the best position to decide which public services are worthy of their tax dollars.

Small Business Job Creation Tax Credit

This legislation will reinstate a popular $2,500 tax credit for small businesses that hire net new employees. This credit will foster economic development and provide stimulus to businesses that have difficulty accessing existing economic incentives.

Small Business Economic Incentive Act

This legislation will ask Illinois policymakers to allocate 50% of future economic development incentives to small businesses. These incentives will help small businesses create jobs and foster economic development in communities across the state.

Small Business State Contract Act

This legislation will create a transparent scoring system for small business contracts and will require state agencies to uniformly advertise all small business set-asides. These changes will help small businesses win their fair share of contracts.

Employee Ownership Grant Program

This legislation will incentivize employee ownership using grant funding for feasibility studies and education. Investing in employee ownership will preserve local businesses, expand the labor force, and foster worker wealth through value sharing.

Small Business Loan Transparency

This legislation will protect small businesses from predatory lending by requiring disclosure of the annual percentage rate. Providing businesses with the same transparency as consumers will promote competition and help businesses grow safely.