Last week, the US House of Representatives approved HR 2799, or the Expanding Access to Capital Act. The legislation incorporated a long list of items aimed at supporting entrepreneurs and innovators while helping investors participate in promising offerings. House Representatives voted along party lines.
Some items included in the legislation include language that will increase Reg A+ to $150 million, create a micro-exemption for smaller businesses, and democratize the definition of an Accredited Investor, making it more inclusive.
You may view the legislation here.
CI received a comment from Rebecca Kacaba, CEO and co-founder of DealMaker – a broker-dealer that is active in the securities crowdfunding sector, helping companies raise money using the full stack of securities exemptions.
Kacaba said the legislation is moving in the right direction,
“I am thrilled to see that the US House of Representatives has approved the Expanding Access to Capital Act (HR 2799). The expansions proposed will help alleviate many challenges faced by entrepreneurs and start-ups, boost innovation, jobs and economic growth. Thank you to Representative Patrick McHenry for putting forward this Bill and for continuously supporting the investment crowdfunding industry. I encourage the Senate to move quickly and pass this legislation, providing founders with the tools they need to access capital and grow their businesses and providing everyday investors with broader access to the capital markets.”
While the Senate could be a hurdle in passing legislation that helps small businesses and entrepreneurs, in an election year, it could be hard to deny a bill that supports the little guy. Yet, one Representative took the floor of the House, bashing the bill and labeling it the Expanding Access to Fraud Act, with little justification, while seeking to keep the Accredited Investor definition in the realm of the wealthy.