Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm News

Could the SEC’s New Regulation A+ Benefit Your Company?

Author: Dan Brecher

Date: April 6, 2015

Key Contacts

Back

The Securities and Exchange Commission (SEC) recently adopted new regulations designed to provide small businesses with greater access to capital. The new rules, dubbed “Regulation A+,” expand Regulation A, which currently exempts from registration securities offerings of up to $5 million in a 12-month period.

The JOBS Act mandated that the SEC update and expand the Regulation A exemption with the goal of making it more widely available. Due to the time and expense associated with such offerings, Regulation A is currently one of the most infrequently used exemptions to SEC registration, with only a handful of companies using it every year.

Regulations A+ expands
Photo by JESHOOTS.COM on Unsplash

“These new rules provide an effective, workable path to raising capital that also provides strong investor protections,” said SEC Chair Mary Jo White.  “It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”

Over the years, I have published several lengthy articles describing the mechanics and the benefits of Regulation A offerings for smaller companies. Regulation A+ is a long awaited updating to higher limits, and with appropriate new accounting requirements, considering the substantial increases in the amounts now available to be raised. Under the new scheme, there would be two tiers of securities offerings, each with its separate set of requirements. Notably, Tier 1 would still require the approval from state securities regulators, whereas the rules provide for the preemption of state securities law registration and qualification requirements for Tier 2 securities.

Tier 1 would consist of securities offerings of up to $20 million in a 12-month period, with not more than $6 million in offers by selling security-holders that are affiliates of the issuer. Meanwhile, Tier 2 would include securities offerings of up to $50 million in a 12-month period, with not more than $15 million in offers by selling security-holders that are affiliates of the issuer.

In addition to the basic requirements set forth in Regulation A, companies conducting Tier 2 offerings are subject to other requirements. For instance, they are required to provide audited financial statements and file annual, semiannual and current event reports with the SEC. In addition, securities purchases for non-accredited investors are limited to no more than 10 percent of the greater of the investor’s annual income or net worth.

Regulation A+ will become final 60 days after publication by the SEC in the Federal Register.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Christopher D. Warren Appointed to NJ Ethics Committee post image

Christopher D. Warren Appointed to NJ Ethics Committee

Scarinci Hollenbeck Partner Christopher D. Warren Named to New Jersey Supreme Court District VI Ethics Committee Little Falls, NJ — September 5, 2025 — Scarinci Hollenbeck, LLC is proud to announce that Christopher D. Warren, Partner, has been appointed to serve on the New Jersey Supreme Court District VI Ethics Committee for the term 2025–2029. Mr. Warren brings more than […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Christopher D. Warren Appointed to NJ Ethics Committee"
Scarinci Hollenbeck Awards Inaugural Theodore A. Schwartz Scholarship for Environmental Law post image

Scarinci Hollenbeck Awards Inaugural Theodore A. Schwartz Scholarship for Environmental Law

Scarinci Hollenbeck Congratulates Theodore A. Schwartz Scholarship Recipient Adrienne Aiken Little Falls, NJ — July 21, 2025 — Scarinci Hollenbeck, LLC established the Theodore A. Schwartz Scholarship for Environmental Law to recognize the contributions of retired partner Theodore “Ted” Schwartz and support the next generation of environmental lawyers. Adrienne Aiken, the recipient of the 2025 […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Awards Inaugural Theodore A. Schwartz Scholarship for Environmental Law"
Scarinci Hollenbeck Attorneys Recognized as 2026 Best Lawyers in America® post image

Scarinci Hollenbeck Attorneys Recognized as 2026 Best Lawyers in America®

Ten Scarinci Hollenbeck Attorneys Recognized in 2026 Edition of Best Lawyers in America© Little Falls NJ – August 28, 2025 – Scarinci Hollenbeck, LLC is pleased to announce that ten attorneys have been recognized in the 2026 edition of The Best Lawyers in America®. First published in 1983, Best Lawyers is universally regarded as the definitive guide to legal excellence. […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Attorneys Recognized as 2026 Best Lawyers in America®"
Donald M. Pepe Named GlobeSt. Influencer in Industrial Real Estate post image

Donald M. Pepe Named GlobeSt. Influencer in Industrial Real Estate

Scarinci Hollenbeck Partner Recognized for Continued Impact on Industrial Real Estate Industry Little Falls, NJ — July 25, 2025 — Scarinci Hollenbeck, LLC Partner Donald “Don” Pepe was recently recognized as a 2025 Influencer in Industrial Real Estate by GlobeSt, a leading commercial real estate publication. The GlobeSt award recognizes the professionals, teams, and companies […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Donald M. Pepe Named GlobeSt. Influencer in Industrial Real Estate"
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING Four Litigators post image

Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING Four Litigators

NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING Four Litigators"
Bloomberg Law Podcast Discusses Shaquille O’Neil FTX Settlement With Ron Bienstock post image

Bloomberg Law Podcast Discusses Shaquille O’Neil FTX Settlement With Ron Bienstock

Bloomberg Law Podcast Discusses Shaquille O’Neil FTX Settlement With Ron Bienstock Little Falls, NJ – June 24, 2025 – Scarinci & Hollenbeck, LLC Partner and Chair of the firm’s Intellectual Property and Entertainment & Media departments Ronald S. Bienstock recently joined the Bloomberg Law podcast to discuss Shaquille O’Neal settling a class-action lawsuit over his FTX endorsement. […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Bloomberg Law Podcast Discusses Shaquille O’Neil FTX Settlement With Ron Bienstock"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!