Expanding Access to Capital Act of 2023

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.