The Securities and Exchange Commission increased the amount of money companies can raise through crowdfunding to adjust for inflation, and approved changes to benefit emerging growth companies under the Jumpstart Our Business Startups (JOBS) Act.
Regarding emerging growth companies, the SEC approved amendments that adjust for inflation a threshold used to determine eligibility for benefits offered to emerging growth companies through the
JOBS Act.
“Regular updates to the JOBS Act, as prescribed by Congress, ensure that the entrepreneurs and investors who benefit from crowdfunding will continue to do so,” SEC Acting Chairman Michael Piwowar said. “Under these amendments, the JOBS Act can continue to create jobs and investment opportunities for the general public.”
The SEC is required to make inflation adjustments to certain JOBS Act rules at least once every five years after it was enacted on April 5, 2012. In addition to the inflation adjustments, the SEC adopted technical amendments to conform several rules and forms to amendments made to the Securities Act of 1933 and the Securities Exchange Act of 1934 by Title I of the JOBS Act.
The SEC approved the new thresholds on March 31. They will become effective when they are published in the Federal Register.