Brand New, Proposed Capital Formation Legislation - Federal and State

Late Tuesday, the House passed HR 5405, Promoting Job Creation and Reducing Small Business Burdens Act, by a roll call vote of 320-102.

HR 5405 includes provisions to improve the ability of emerging growth companies to access capital through our nation's publicly-traded markets; facilitate and streamline the SEC's filing process for emerging growth companies; reduce regulatory burdens on highly regulated Small Business Investment Companies (SBICs) that invest exclusively in domestic small businesses; cut bureaucratic red tape for emerging job creators; enhance market liquidity for growing public companies; and other important capital formation measures.

Among others, HR 5405 includes the following bills:

• HR 3448, Small Cap Liquidity Reform Act
• HR 3623, Improving Access to Capital for Emerging Growth Companies Act
• HR 4164, Small Company Disclosure Simplification Act
• HR 4200, SBIC Advisers Relief Act
• HR 4569, Disclosure Modernization and Simplification Act

This is the second time HR 2274 passed in the House by a wide margin. In January, HR 2274 passed UNANIMOUSLY on a roll call vote of 422-0. A companion bill, S 1923, is currently under consideration in the Senate. We expect a companion bill to HR 4505 will shortly be introduced.

This is an exciting time for investment-based, capital formation initiatives, both at the state and federal level. We expect the SEC to issue final rules on both accredited and non-accredited crowdfunding in October and we're going to spend some time going over what to expect when they do.

Come and learn about these brand new provisions and what it could mean for your capital raising efforts in the future.

Looking forward to seeing you all there next Wednesday, September 24th starting at 6:00 p.m. 


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  • Tim T.

    Great review very informative and encouraging

    September 25

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