Regulation A+ Improvement Act of 2025
Summary
The Regulation A+ Improvement Act of 2025 aims to amend the Securities Act of 1933 to facilitate small company capital formation. It specifically focuses on increasing the offering limits under Regulation A+, a provision of the JOBS Act. The bill adjusts the maximum offering amounts for both Tier 1 and Tier 2 offerings, and includes provisions for inflation adjustments every five years.
Expected Effects
The Act will likely increase the amount of capital that small companies can raise through Regulation A+ offerings. This could lead to more small businesses accessing capital markets. The inflation adjustments aim to maintain the real value of the offering limits over time.
Potential Benefits
- Increased access to capital for small businesses.
- Potential for job creation and economic growth due to increased investment in small companies.
- Reduced regulatory burden for small companies seeking to raise capital.
- Inflation adjustments to maintain the real value of offering limits.
- Simplification of capital raising process for small businesses.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased risk of fraud or abuse due to higher offering limits.
- Possible dilution of existing shareholders' equity.
- Increased compliance costs for companies seeking to raise larger amounts of capital.
- Risk that inflation adjustments may not accurately reflect changes in the cost of capital.
- May disproportionately benefit larger small companies over micro-enterprises.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By amending the Securities Act of 1933, the bill aims to facilitate capital formation for small businesses, which can have a positive impact on interstate commerce. The bill does not appear to infringe upon any individual liberties or rights protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).