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McHenry Supports Regulation Crowdfunding Relief, Pushes for More Support for Small Businesses

Washington, May 4 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in response to the Securities and Exchange Commission’s (SEC) announcement that it is providing temporary and conditional relief for companies impacted by COVID-19 looking to meet their urgent funding needs through a Regulation Crowdfunding offering:

“I’m glad to see the SEC take action once again to support small businesses impacted by COVID-19—this time by making temporary changes to the burdensome Regulation Crowdfunding requirements. But I would encourage them to think bigger. Considering the enhanced need for capital formation due to the voluntary shutdown of our economy, we should provide as much relief as possible. 

“I would also urge my colleagues to support changes to Regulation Crowdfunding and consider additional offering reforms, including changes to Regulation A and the introduction of micro-offerings—all of which will play an important part in ensuring our small businesses can survive this capital crunch.”

In March, Ranking Member McHenry introduced The Crowdfunding to Combat the Coronavirus Act and The Relief for Small Businesses Through Micro-Offerings Act, to harness the power of our capital markets to combat the devastating economic impact of COVID-19 on small businesses.

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