On December 18, 2013, the Securities and Exchange Commission voted to propose rules intended to increase access to capital for smaller companies.
The SEC’s proposal would build upon Regulation A, which is an existing exemption from registration for small offerings of securities up to $5 million within a 12-month period. The updated exemption would enable companies to offer and sell up to $50 million of securities within a 12-month period.
The rules are mandated by Title IV of the Jumpstart Our Business Startup (JOBS) Act.
The SEC’s proposal will undergo a 60-day public comment period after it is published in the Federal Register.
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