Today, Congressman Dan Meuser introduced the Amendment for Crowdfunding Capital Enhancement and Small-business Support (ACCESS) Act. The bill, known as H.R. 6825, aims to facilitate capital access for small businesses and startups by increasing the crowdfunding exemption from $100,000 to $250,000.
Regulation Crowdfunding allows small businesses and startups to raise funds from the public by selling equity or debt. Currently, issuers must file financial statements reviewed by an independent accountant if their offering exceeds $100,000. This requirement can be costly for smaller issuers, with average filing costs around $10,000.
The proposed legislation seeks to raise this threshold to $250,000. This level was temporarily adopted by the SEC during the COVID-19 pandemic when the program continued to function effectively.
Rep. Meuser stated: “Access to capital remains one of the greatest challenges facing small businesses. By raising the crowdfunding exemption, we can provide entrepreneurs with a cost-effective method to raise capital and grow new businesses across the country. This legislation is a win for small businesses and keeps America as a competitive destination for small business growth and development.”
The bill's original cosponsors include Reps. Bill Huizenga (MI-04), Pete Sessions (TX-17), and Zach Nunn (IA-03).
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