ACCESS Act of 2023 Amendment for Crowdfunding Capital Enhancement and Small-business Support Act of 2023
Impact
The potential impact of HB 6825 on state laws includes easing regulatory burdens associated with small business funding. The amendment is designed to provide a more favorable environment for startups and emerging businesses by simplifying the financial requirements needed to secure investments. Advocates argue that this change is essential in giving small businesses the financial leeway required to innovate and expand, thus potentially bolstering the local economy and job creation.
Summary
House Bill 6825, known as the ACCESS Act of 2023, proposes an amendment to the Securities Act of 1933. This legislation focuses on raising the offering amount threshold for issuers using the crowdfunding exemption. Specifically, it seeks to increase the threshold from $100,000 to $250,000, allowing more small businesses to access critical funding without the need for comprehensive financial statements that a public accountant would typically review. By doing so, the bill aims to stimulate small business growth and enhance capital accessibility in a post-pandemic economic environment.
Contention
However, there may be points of contention surrounding HB 6825. Critics of raising the threshold for crowdfunding may express concerns about the potential for reducing investor protections. By allowing issuers to attract higher amounts of funding with less oversight, there could be worries regarding transparency and accountability. Lawmakers and advocacy groups advocating for investor rights may challenge the bill on the grounds that it may expose investors to greater risks, particularly if adequate reviews of financial statements are not maintained.