The Regulation A+ momentum continues! Reg.A+ has now been expanded to allow even more SEC reporting companies to participate in this equity crowdfunding vehicle! This week, the “Improving Access to Capital Act” (H.R. 2864) was passed in the House of Representatives by a whopping vote of 403 to 3. Talk about a landslide!
The bipartisan bill – which allows the expanding the scope of eligible issuers under Regulation A+ to include fully SEC reporting companies – was sponsored by Representative Kyrsten Sinema [D-AZ-9] and Representative Trey Hollingsworth (representing Indiana’s 9th District) who both understand how important it is to give all SEC reporting companies the ability to raise capital via Regulation A+. In its brief history, Reg.A+ has already proven to foster both economic growth as well as lowering the cost of raising capital in general. We’d like to know who those 3 holdouts were!
There was tremendous bipartisan support for the bill. Said Representative Randy Hultgren (R-IL):
“Regulation A+ has been helpful, though not all companies have been able to take advantage of it. Some small companies are shut out from the benefits, smaller investors also suffer. 2863 would improve this and would include companies that are fully reporting. Small investors would have greater investment opportunities.”
Representative Maxine Waters (D-CA) expressed support as well saying:
“Public companies must comply with Regulation A+. ‘Bad Actors’ who have committed felonies, misdemeanors, and fraud are not eligible for Regulation A+. Congress should continue to reform regulations to encourage companies to go public.”
Regulation A+ does two things: it improves the capital raising process for small to mid-size businesses and also makes it easier for companies and investors to access the public markets. Going public with an “IPO to go” (as we like to call it) is a lot less painful with Regulation A+. Now this legislation makes its way to the Senate where continued success surely awaits! Keep up with the latest news by subscribing to our Regulation A+ Equity Crowdfunding newsfeed or listen to our radio podcast episodes of the “Reg.A Money Show” on iHeartRadio as well as other prominent syndicated sources.