ACCESS Act of 2025 Amendment for Crowdfunding Capital Enhancement and Small-business Support Act of 2025
The amendment is expected to have a substantial impact on small businesses, especially startups looking to secure funding without the complex requirements typically associated with traditional financing methods. By raising the threshold, it allows more businesses to access funds without the need for expensive accounting reviews, thereby promoting entrepreneurship and economic growth. It demonstrates a governmental intent to support business innovation and facilitate capital flow to smaller entities, which may boost local economies.
House Bill 3645 proposes amendments to the Securities Act of 1933 to increase the offering amount threshold for issuers utilizing the crowdfunding exemption. Under the current legislation, issuers are required to file financial statements that are reviewed by an independent public accountant when they seek to raise amounts exceeding $100,000. This bill aims to raise that threshold to $500,000, thereby easing the regulatory burden on small businesses and encouraging them to engage in crowdfunding as a means of raising capital.
While proponents of the bill argue that it will foster small business development by reducing regulatory burdens, there may be concerns regarding investor protections. Critics might argue that increasing the threshold could expose investors to higher risks, as less oversight could lead to issuers providing misleading or incomplete financial information. The debate around this bill will likely center on balancing the need for regulatory relief for small businesses while ensuring that adequate protections remain in place for investors.