Tester hails SECs action to boost access to capital limits for small businesses
(U.S. SENATE)-Senator Jon Tester today hailed the decision by the U.S. Securities and Exchange Commission (SEC) to finalize his Regulation A provision, allowing businesses to raise up to $50 million from investors without having to file lengthy paperwork with the SEC.
“The folks who run small businesses need to access capital in order to grow, innovate, and create jobs,” Tester said. “Montana is a great state for entrepreneurs, but as these businesses grow, they will need money to expand and succeed in the market. Investment limitations shouldn’t keep a good idea from flourishing into a successful business.”
In 2012, Congress raised the limit small businesses can raise under Regulation A from $5 million to $50 million and the rule has been awaiting SEC approval since.
Tester, a senior member of the Senate Banking Committee, was a sponsor the 2012 JOBS Act that passed Congress and authored the provision that allowed small businesses to increase capital investment under Regulation A.