H.R. 2167, the Private Company Flexibility and Growth Act, introduced by Rep. David Schweikert - H.R. 2167 removes an impediment to capital formation for small companies by raising the shareholder threshold for mandatory registration with the SEC from 500 to 2,000 shareholders. At a recent hearing, the Committee received testimony from witnesses regarding the impact the bill will have on the availability of credit for small companies, job creation, and economic growth.
H.R. 2940, the Access to Capital for Job Creators Act, introduced by Rep. Kevin McCarthy- H.R. 2940 removes the regulatory ban that prevents small, privately held companies from using advertisements to solicit sophisticated investors for private offerings. Securities laws not only prohibit general solicitation and advertising, but also require investors to have an existing relationship with the company to meet SEC exemption requirements.
H.R. 2930, the Entrepreneur Access to Capital Act, introduced by Rep. Patrick McHenry - H.R. 2930 permits “crowd-funding” to finance new businesses by allowing companies to accept and pool donations up to $5 million without registering with the SEC. Crowd-funding is an innovative and lower-risk financing mechanism that enables several individuals to pool investment money with a particular company. Current SEC regulations prohibiting general solicitation have prevented crowd-funding from developing and flourishing in the United States.
H.R. 1965, introduced by Rep. Jim Himes - H.R. 1965 modifies regulations concerning registration and de-registration of small bank holding companies under securities laws.
Posts
