Summary
Helps small businesses raise more money from many people online before they have to pay for an expensive check of their finances.
What problem does this solve?
Small businesses using online crowdfunding face high costs because they must hire an accountant for a financial review even when raising a small amount of money. This bill raises that amount, letting businesses raise more money before needing to pay for this costly review.
Who does this affect?
- Small businesses and startups
- Individual investors
What does this bill do?
Raises threshold for required financial review
Increases the amount a company can raise via crowdfunding from $100,000 to $250,000 before it must provide financial statements reviewed by an independent public accountant.
Allows for future increases to the threshold
Gives the Securities and Exchange Commission (SEC) the power to increase the review threshold from $250,000 up to $400,000 in the future, based on recommendations.
Makes technical corrections to existing law
Updates references in the Securities Act of 1933 to correct section numbering, ensuring the law is accurate and up-to-date.
What is the real world impact?
•
Makes it easier for startups to raise money
Lowers the cost of raising money for new and small businesses. This helps them get the funds they need to grow without the early expense of a formal financial review.
When does this start?
The changes would take effect as soon as the bill is signed into law.