US House Approves Looser Rules for Closely Held Companies Seeking Equity
Bloomberg BusinessWeek has a story on two measures passed by the house of Representatives that loosens rules on equity investors for smaller enterprises:
House lawmakers voted 407-17 to pass a measure that would exempt from Securities and Exchange Commission registration firms that solicit and pool small investments, often online, of up to $1 million. The practice, known as crowdfunding, garnered bipartisan support after Obama’s Sept. 8 speech to Congress...
...Representative Kevin McCarthy, the third-ranked Republican in the House, sponsored a second bill passed today that would allow closely held firms to market offerings to accredited investors. The SEC currently bans closely held firms from soliciting funding from investors.
Both measures passed on a bipartisan basis and now move to the Senate for approval.
