Economic Growth, Regulatory Relief, and Consumer Protection Act

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govAn exciting development has taken place in the capital raising industry. The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) was enacted into law and included key legislation expanding Regulation A+ to SEC reporting companies.

Regulation A+ allows small companies to raise up to $50 million online, transparently and directly from the public without the extensive cost burden of a full SEC public offering. This is important because, initially, the SEC did not allow fully reporting companies to raise capital through Regulation A+.

Section 508 of the bill incorporates the Improving Access to Capital Act. The Improving Access to Capital Act, which amends Regulation A+ to allow SEC reporting companies to use this innovative capital raising tool, was originally passed by the House of Representatives in September 2017 in a bipartisan, 404-3 vote.

The work of Congresswoman Kyrsten Sinema (D-AZ) and Congressman Trey Hollingsworth (R-IN), lead sponsors of the Improving Access to Capital Act in the House, and collective efforts of Representatives Sinema and Hollingsworth, and cosponsors Rep. Roger Williams (R-TX), Rep. French Hill (R-AR), Rep. Luke Messer (R-IN), and Rep. Brad Sherman (D-CA), whose contributions led to this important bill becoming law.

References

Crapo, M. (2017). S.2155 – 115th Congress (2017-2018): Economic Growth, Regulatory Relief, and Consumer Protection Act. Retrieved June 5, 2018, from https://www.congress.gov/bill/115th-congress/senate-bill/2155