Washington, D.C. — Today, Senator Ted Budd (R-NC) introduced two bills designed to expand economic opportunity, reduce regulations, and make it easier for Americans to start and grow new businesses.
The first bill is the Regulation A+ Improvement Act. This bill increases the dollar amount companies can raise without going through the standard initial public offering (IPO) process. Allowing this “mini-IPO” under “Regulation A” would allow companies to bypass obstacles that could prevent them from raising the necessary money they need to grow and thrive.
This legislation cuts through the red tape and unlocks new funding avenues by:
- Doubling the Offering Cap: Companies could raise $100 million more annually through Regulation A+, significantly increasing their access to capital.
- Streamlining the Process: Eliminates mountains of paperwork and costly audits. Regulation A simplifies offering procedures, making it faster and cheaper for companies to raise funds.
Senator Mike Braun (R-IN) joined Senator Budd in sponsoring this legislation.
The second bill is the Investment Opportunity Expansion Act. This bill lowers barriers to entry and allows middle-class Americans to invest in private offerings.
Under Regulation D of the Securities and Exchange Commission, companies can make private offerings to accredited investors without registering these offerings beforehand. The SEC allows these offerings to be made to accredited investors, but for an individual to qualify, they would have to meet the SEC’s criteria, which heavily skews toward wealthy individuals. This bill allows any individual to invest in a private offering so long as that investment does not exceed 10% of either that individual’s net assets or annual income, whichever is greater.
Senators Mike Braun (R-IN) and Cindy Hyde-Smith (R-MS) joined Senator Budd in sponsoring this legislation.
Sen. Budd said in a statement:
“Small and medium size businesses often struggle to raise the necessary capital to grow due to the burdensome and complex IPO process. My Regulation A+ Improvement Act aims to reduce that barrier to entry and allow more small entrepreneurs to have access to the funds they need to grow.”
“The current SEC framework unfairly prevents everyday Americans from becoming early investors in companies that may have significant growth potential. My Investment Opportunity Expansion Act would unlock this system and allow it to work for middle-income Americans.”
“Taken together, these bills would empower more Americans to become entrepreneurs and inventors, as well as grow a business from a start-up to the Fortune 500. Bottom line: These bills would make it easier for Americans to achieve the American Dream.”
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