Raising Crowdfunding Thresholds to Support Small Business Capital Formation
This bill increases the maximum amount small businesses can raise through crowdfunding without needing a formal financial review by an independent public accountant. The threshold is raised from $100,000 to $250,000, making it easier and cheaper for startups to secure initial capital. While reducing administrative burden for businesses, investors should note that offerings in this range will have less mandatory financial oversight.
Key points
The crowdfunding offering threshold requiring independent accountant review is raised from $100,000 to $250,000.
The SEC is granted discretion to further increase this threshold up to $400,000 based on expert recommendations.
Small businesses benefit from reduced compliance costs and easier access to capital for growth.
Status:
Introduced
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