The House of Representatives recently passed H.R. 4263 on March 15, 2018, titled the Regulation A+ Improvement Act. Regulation A+ is comprised of two separate tiers regarding offerings, titled Tier 1 and Tier 2. Both of these tiers detail several minimum requirements, that include issuer eligibility and disclosure requirements. Regulation A+ allows companies to raise capital from both accredited and unaccredited investors, and helps companies sell and transfer securities easier. Regulation A+ is particularly beneficial for allowing smaller companies greater access to capital, and was a big step forward for small companies when the funding limits were raised.
H.R. 4263 increased the offering amount for companies under Tier 2 from $50 million to $75 million, which will be adjusted by the SEC every two years to the nearest $10,000 for inflation. This adjustment will reflect any changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics.
The estimated cost by the Congressional Budget Office (CBO) for implementing this regulation is less than $500,000. The CBO also stated that since the SEC is able to collect their own fees to offset their costs, the effect on their discretionary spending should be negligible.
The bill is currently in the Senate Committee on Banking, Housing, and Urban Affairs, where it has been read twice. It is currently unclear whether the bill will pass or fail.