SEC Temporarily Relaxes Rules For Small Business Crowdfunding Offerings
On May 4, 2020, the Securities and Exchange Commission (SEC) announced that it was providing temporary, conditional relief to established small businesses impacted by COVID-19 that will facilitate their ability to pursue offerings under Regulation Crowdfunding. The SEC’s action is intended to expedite the offering process by relaxing certain of Regulation Crowdfunding’s rules with respect to the timing of an offering and the financial statements required. To benefit from the SEC’s temporary rule changes, a small business must meet enhanced eligibility requirements and make a clear disclosure about its reliance on the temporary rules to investors. This relief is available for offerings launched until August 31, 2020.