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View Full Version : SEC Proposed Rule Amendment to Regulation A



SocialCam
12-19-2013, 04:06 PM
It's been another big day for the SEC apparently. Today the Securities and Exchange Commission, led by Mary Jo White, has proposed rule changes to Regulation A. The biggest change to the proposed rules is the fact that small business's would now be permitted to raise up to $50 million instead of $5 million from the public without having to register with the SEC. This would be huge for companies that wish to crowdfund, however need more than the $5 million per year cap, which is in place right now. There will now be 2 Tiers:

Tier 1 Regulation A - Up to $5 Million per year can be raised
Tier 2 Regulation A - Between $5,000,001 - $50,000,000 per year can be raised

Although this change will not affect unaccredited investors very much, it will certainly help companies seeking funding via some types of crowdfunding.

The entire PDF of the proposed rule changes can be viewed here:
http://www.scribd.com/doc/192377568/Proposing-Rule-Amendments-to-Regulation-a-to-Implement-Section-401-of-the-Jumpstart-Our-Business-Startups-Act

http://www.crowdfundinsider.com/shared/2012/11/sec-300x195.jpg