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COVID-19 quick take: SEC relaxes crowdfunding rules for small businesses

Raju Chaduvula  

Raju Chaduvula  

(May 5, 2020) - The Securities and Exchange Commission on May 4 announced it is temporarily loosening certain rules to expedite “regulation crowdfunding” offerings by small businesses with urgent funding needs due to COVID-19.

These off-exchange offerings, which occur online through registered intermediaries, are already limited to companies raising $1 million or less over 12 months.
 
The SEC’s Small Business Capital Formation Advisory Committee suggested the changes, which relax rules on the timing of company offerings and necessary financial statements.
 
The temporary changes, such as exemption from certain financial statement reviews for issuers offering more than $107,000 but less than $250,000 in securities through crowdfunding, will apply until Aug. 31.

To keep up-dated on the latest news and information regarding the COVID-19 pandemic, the economic impact, and the government’s response, at Thomson Reuters’ COVID-19 Resource Center, and you can follow Reuters.com or the Reuters App.