Bill > HR4171

This bill establishes a new micro-offering exemption for small businesses seeking to raise capital by amending the Securities Act of 1933. The exemption allows issuers (businesses or entrepreneurs) to sell securities without extensive mandatory disclosure requirements, with a total cap of $250,000 in securities sales over a 12-month period. To protect investors, the bill requires the Securities and Exchange Commission (SEC) to create disqualification rules that prevent certain individuals from using this exemption, such as those with recent felony convictions related to securities, or those subject to regulatory orders barring them from financial industry activities. The disqualification provisions will be similar to existing regulations and aim to exclude bad actors from taking advantage of the simplified offering process. Additionally, the bill modifies state-level securities regulations to accommodate this new exemption, ensuring consistency across federal and state securities laws. The overall goal is to make it easier and less burdensome for small entrepreneurs to raise capital while maintaining basic investor protections.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4171/all-info