H.R. 6541: Regulation A+ Improvement Act of 2025

This bill, called the Regulation A+ Improvement Act of 2025, aims to amend the Securities Act of 1933, specifically relating to how small companies can raise capital through public offerings. Here are the key points of the bill:

Increase in Capital Raising Limit

The bill proposes to increase the maximum amount of money that small companies can raise through a specific type of public offering known as Regulation A+. Currently, companies can raise up to $50 million; this bill would raise that limit to $150 million. Additionally, this amount would be adjusted for inflation every two years, ensuring that it keeps pace with the cost of living.

Inflation Adjustment

The bill includes provisions for regularly adjusting the capital raising limit based on the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics. This means that over time, as inflation occurs, the limit for raising capital can be raised accordingly to maintain its real value.

Implications for Small Companies

By increasing this limit, the legislation is designed to provide small companies with greater opportunities to secure funding from investors without having to undergo the full requirements that typically apply to larger public offerings. This could help these companies grow and create jobs.

Committee Review

After being introduced by Mr. Stutzman, the bill has been referred to the Committee on Financial Services for further consideration. The committee will review the bill and can suggest amendments or changes before it is voted on by the whole House of Representatives.

Summary of Objectives

• Raise the maximum amount small companies can raise through Regulation A+ from $50 million to $150 million.
• Adjust this limit for inflation every two years to maintain its real value.
• Facilitate easier access to capital for small businesses, helping them grow and create new jobs.

Next Steps

If the Committee on Financial Services approves the bill, it will proceed to the full House for consideration, where it could ultimately be passed into law or face further debate and changes.

Relevant Companies

• None found