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## U.S. Rep. Dan Meuser Introduces Legislation to Increase Crowdfunding Exemption

On Friday, U.S. Rep. Dan Meuser (R-PA) introduced legislation that seeks to increase the crowdfunding exemption so small businesses and startups have more access to capital. The legislation, called the Amendment for Crowdfunding Capital Enhancement and Small-business Support (ACCESS) Act, would increase the exemption from $100,000 to $250,000.

The Regulation Crowdfunding, or Reg CF, allows small businesses and startups to raise money by selling small amounts of their equity or debt to the general public. Currently, issuers using the crowdfunding exemption must file financial statements reviewed by independent public accountants when the offering is over $100,000. This requirement can be cost-prohibitive for small businesses and startups because the average cost to file the statements is around $10,000.

MeuserÔÇÖs office stated that the ACCESS Act aims to provide entrepreneurs with a cost-effective method to raise capital and grow new businesses across the country. By raising the crowdfunding exemption to $250,000, the legislation aims to address the challenge of access to capital for small businesses.

During the COVID-19 pandemic, the Securities and Exchange Commission had adopted a higher threshold of $250,000 for the crowdfunding exemption. MeuserÔÇÖs bill seeks to make this level permanent, as it did not hinder the crowdfunding programÔÇÖs ability to work as designed. According to Meuser’s office, a higher threshold could support small businesses without compromising investor protection.

The bill is cosponsored by U.S. Reps. Bill Huizenga (R-MI), Pete Sessions (R-TX) and Zach Nunn (R-IA). These lawmakers aim to support small businesses and keep America as a competitive destination for small business growth and development.

### How AI legalese decoder Can Help

The AI legalese decoder can assist small businesses, startups, and their legal representatives in understanding and navigating the complex legal language and requirements surrounding crowdfunding exemptions. It can decode and simplify the legal terminology and specific regulations related to crowdfunding, making it easier for entrepreneurs to comply with the legal requirements and take advantage of the increased exemption. Additionally, the AI tool can provide insights into the potential impacts and implications of the proposed legislation, allowing businesses to make informed decisions about their fundraising strategies.

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