This bill would increase the amount of securities (like stock) companies can offer and sell over a 12 month period while being exempt from some disclosure and registration requirements under Securities and Exchange Commission (SEC) Regulation A+ from $50 million to $75 million. It would require the SEC to adjust the threshold every two years for inflation to the nearest $200,000.
What is House Bill H.R. 4263?
Cost of House Bill H.R. 4263
In-Depth: House Republicans introduced this bill to increase emerging businesses’ access to capital investment, writing in its committee report:
“H.R. 4263 is consistent with the Department of Treasury’s recommendation in its October 2017 report on Capital Markets, issued pursuant to President Trump’s February 3, 2017 Executive Order 13772, that the Tier 2 offering limit be increased to $75 million because such would allow private companies to consider a “mini-IPO” under regulation A+ as a potentially less costly alternative to raise capital.”
Most House Democrats opposed this bill in committee, calling an increase in the threshold from $50 million to $75 million “unnecessary, not supported by the data, and potentially harmful”
Summary by Eric Revell(Photo Credit: aluxum / iStock)
Regulation A+ Improvement Act of 2017
To amend the Securities Act of 1933 with respect to small company capital formation, and for other purposes.
- Not enactedThe President has not signed this bill
- The senate has not voted
Committee on Banking, Housing, and Urban Affairs
- senate Committees
- The house Passed March 15th, 2018Roll Call Vote 246 Yea / 170 Nay
Committee on Financial ServicesIntroducedNovember 7th, 2017
- house Committees