H.R. 1070, the Small Company Capital Formation Act
Posted by on April 13, 2011

The Small Company Capital Formation Act encourages small companies to access the capital markets — allowing them to invest and hire employees. The legislation increases the offering threshold for companies exempted from SEC registration under SEC Regulation A from $5 million — the threshold set in the early 1990s — to $50 million. The SEC has the authority to raise this threshold but has not done so for  almost two decades. The bill is spnsored by Representative David Schweikert.

The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.
  • Gene Massey commented on 5/23/2011
    Dear Sirs, This is a very important bill for capital raising for small companies. We cannot get bank loans, not even SBA guaranteed loans!!! This bill needs to contain an exemption from the Blue Sky regulations, requiring review in each state - IMPOSSIBLE to do in smaller offerings and the cost makes it prohibitive. This bill would also simplify capital raising from the public, especially from Internet offerings.
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