Small Business Relief Act
Summary
The Small Business Relief Act aims to amend the Securities Exchange Act of 1934. It seeks to exclude qualified institutional buyers and institutional accredited investors from the calculation of security holders for mandatory registration thresholds. This adjustment is intended to ease regulatory burdens on small businesses.
Expected Effects
The bill, if enacted, would likely reduce the number of small businesses required to register their securities with the SEC. This could lead to decreased compliance costs and increased access to capital for these businesses. The exclusion of qualified institutional buyers and accredited investors from the calculation could significantly alter the registration landscape.
Potential Benefits
- Reduced regulatory burden for small businesses.
- Increased access to capital markets for small businesses.
- Potential for increased investment in small businesses.
- Simplification of compliance requirements.
- May encourage more small businesses to go public.
Most Benefited Areas:
Potential Disadvantages
- Potential for reduced oversight of securities offerings.
- Possible increased risk for non-institutional investors.
- May lead to a concentration of ownership among institutional investors.
- Could create loopholes for larger companies to avoid registration.
- Potential for decreased transparency in the market.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by regulating securities and interstate commerce. There is no apparent conflict with the Bill of Rights or other constitutional provisions. The act does not infringe on individual liberties or state powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).