In a White House fact sheet set forth with the introduction of the draft legislation, the American Jobs Act, the Administration expressed support for a number of measures designed to reduce the regulatory burdens on small business capital formation: As part of the President’s Startup America initiative, the Administration will pursue efforts to reduce the regulatory burdens on small business capital formation in ways that are consistent with investor protection.
This effort will include working with the SEC to explore ways to address the costs that small and new firms face in complying with Sarbanes-Oxley disclosure and auditing requirements. The Administration also supports establishing a “crowdfunding” exemption from SEC registration requirements for firms raising less than $1 million (with individual investments limited to $10,000 or 10% of investors’ annual income). The Administration also supports raising the cap on “mini-offerings” (Regulation A) from $5 million to $50 million. This will make it easier for entrepreneurs to raise capital and create jobs.
To read the full, original article click on this link: Jim Hamilton’s World of Securities Regulation: White House Supports Crowdfunding as Capital Raising Technique as Part of Jobs Initiative
