Bill 118 HR 2651, also known as the Regulation A+ Improvement Act of 2023, aims to make changes to the Regulation A+ securities offering process in order to make it easier for small businesses to raise capital. The bill was introduced in the House of Representatives on March 15, 2023.
The Regulation A+ process allows small businesses to raise up to $50 million in capital through a streamlined securities offering process. However, there have been concerns that the current regulations are too burdensome and restrictive, making it difficult for small businesses to take advantage of this funding option.
The Regulation A+ Improvement Act of 2023 seeks to address these concerns by making several key changes to the current regulations. These changes include increasing the maximum offering amount from $50 million to $75 million, allowing for the use of general solicitation and advertising in certain circumstances, and streamlining the review process for offerings.
Proponents of the bill argue that these changes will make it easier for small businesses to access the capital they need to grow and create jobs. They believe that by reducing the regulatory burden and increasing the flexibility of the Regulation A+ process, more small businesses will be able to take advantage of this funding option.
Opponents of the bill, however, have raised concerns about potential risks to investors and the potential for fraud. They argue that the changes proposed in the bill could make it easier for unscrupulous businesses to take advantage of investors and could ultimately harm the integrity of the securities markets.
Overall, the Regulation A+ Improvement Act of 2023 is a complex piece of legislation that seeks to strike a balance between making it easier for small businesses to raise capital and protecting investors from potential risks. It will be important for lawmakers to carefully consider the potential implications of the bill before making a decision on its passage.