Expanding Access to Capital Act of 2023

Hozzl · 2024-03-18T22:24:54Z

Explore the details of House Bill 2799 Expanding Access to Capital Act of 2023 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

3/18/2024, 10:24 PM

Summary of Bill HR 2799

Bill 118 hr 2799, also known as the Expanding Access to Capital Act of 2023, aims to make it easier for small businesses to access capital by expanding the definition of accredited investors. Currently, accredited investors are individuals or entities that meet certain income or net worth requirements and are allowed to invest in private offerings. This bill seeks to broaden this definition to include individuals with certain professional certifications, designations, or credentials that demonstrate their financial sophistication.

The bill also includes provisions to streamline the registration process for small businesses seeking to raise capital through Regulation A offerings. Regulation A offerings allow companies to raise up to $50 million from the general public without having to go through the full registration process required for public offerings. The Expanding Access to Capital Act of 2023 would simplify the filing requirements for these offerings, making it easier and less costly for small businesses to access capital from a wider pool of investors.

Additionally, the bill includes measures to increase transparency and accountability in the private securities market. It requires the Securities and Exchange Commission (SEC) to conduct a study on the impact of the accredited investor definition on capital formation and investor protection. The SEC would also be required to report to Congress on any recommendations for changes to the definition of accredited investors. Overall, the Expanding Access to Capital Act of 2023 aims to promote economic growth and job creation by making it easier for small businesses to raise capital and access the resources they need to succeed. By expanding the definition of accredited investors and streamlining the registration process for Regulation A offerings, this bill seeks to level the playing field for small businesses and encourage investment in the private securities market.

Congressional Summary of HR 2799

Expanding Access to Capital Act of 2023

This bill reduces various securities regulations applicable to certain companies, brokers, and advisors. The bill also allows more investors to invest in specified types of ventures.

The bill reduces regulations, for example, by establishing an exemption to certain securities regulations for small offerings of securities. Specifically, under the bill, securities registration is not required for a sale of securities if the total amount of securities sold by the issuer during the preceding 12-month period does not exceed $250,000. The bill also allows certain issuers of securities regulated as emerging growth companies to continue operating under these regulations, including those related to reduced disclosures, for an additional period of time. It also raises the limit of total annual gross revenues under which issuers qualify as emerging growth companies to $1.5 billion.

The bill allows more investment, for example, by raising the caps on the allowed capital and number of investors under which a fund may qualify as a venture capital fund. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. The bill increases the caps from (1) $10 million to $150 million in capital contributions and commitments, and (2) 250 to 600 allowed investors.

In addition, the bill expands who may be considered an accredited investor for purposes of participating in private offerings of securities. Certain unregistered securities may only be offered to accredited investors.

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Current Status of Bill HR 2799

Bill HR 2799 is currently in the status of Passed in House since March 8, 2024. Bill HR 2799 was introduced during Congress 118 and was introduced to the House on April 24, 2023. Bill HR 2799's most recent activity was Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of March 11, 2024

Bipartisan Support of Bill HR 2799

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 2799

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

Banking and financial institutions regulationBusiness investment and capitalFinancial services and investmentsGovernment studies and investigationsLicensing and registrationsSecuritiesSmall business

Alternate Title(s) of Bill HR 2799

DEAL Act of 2023Small Business Investor Capital Access ActExpanding Access to Capital Act of 2023Gig Worker Equity Compensation ActRestoring the Secondary Trading Market ActImproving Crowdfunding Opportunities ActDeveloping and Empowering our Aspiring Leaders Act of 2023Regulation A+ Improvement Act of 2023SEED Act of 2023Small Entrepreneurs’ Empowerment and Development Act of 2023Improving Capital Allocation for Newcomers Act of 2023Unlocking Capital for Small Businesses Act of 2023Helping Startups Continue To Grow ActExpanding Access to Capital Act of 2023Risk Disclosure and Investor Attestation ActInvestment Opportunity Expansion ActSmall Business Investor Capital Access ActUnlocking Capital for Small Businesses Act of 2023Helping Startups Continue To Grow ActImproving Disclosure for Investors Act of 2023Improving Capital Allocation for Newcomers Act of 2023Expanding Access to Capital Act of 2023Retirement Fairness for Charities and Educational Institutions Act of 2023Increasing Investor Opportunities ActRisk Disclosure and Investor Attestation ActInvestment Opportunity Expansion ActGig Worker Equity Compensation ActRestoring the Secondary Trading Market ActImproving Crowdfunding Opportunities ActHALOS Act of 2023Helping Angels Lead Our Startups Act of 2023DEAL Act of 2023Developing and Empowering our Aspiring Leaders Act of 2023Regulation A+ Improvement Act of 2023SEED Act of 2023Small Entrepreneurs’ Empowerment and Development Act of 2023To make reforms to the capital markets of the United States, and for other purposes.

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