House Passes Measure to Ease SEC Registration Woes
Soon small businesses may not have to worry about expensive Securities and Exchange Commission registration fees. The House passed a bill yesterday that will make raising capital easier for small businesses.
The bill raises the ceiling to $50 million for shares a private company can sell before having to register with the SEC. The current ceiling, set in 1992, is $5 million.
According to Arizona Representative David Schweikert there is, “Almost a crisis … in the number of companies that aren’t going public anymore.”
The bill, along with one easing the registration restraints on community banks, will now go to the Senate.
Many small businesses worry about the $5 million ceiling on shares they can sell before facing costly SEC registration fees. Legislators hope raising the ceiling will encourage economic growth.