Capital Raising: Legislative and Regulatory Efforts to Reduce Barriers

From law firm Morgan Lewis, a comprehensive overview of ongoing initiatives in Congress and key federal agencies to loosen restrictions on raising capital. There’s something for everyone in this update, from startups to privately held businesses to public companies:

“H.R. 3606 would create a new category of issuer, an ‘emerging growth company,’ defined as a company with annual revenues of less than $1 billion and a total public float of less than $700 million. The issuer would be granted ‘on ramp’ status by being provided with exemptions from some of the requirements currently imposed on a company seeking to become public and on newly public companies. These exemptions would end (i) after five years, (ii) once the issuer achieves revenues of $1 billion, or (iii) when its public float reaches $700 million, whichever occurs first.”

Read the full update, Legislative and Regulatory Proposals Affecting Capital Raising — March 2012, Morgan Lewis»