On May 4, 2020, the Securities and Exchange Commission (SEC) announced in a Press Release that it is providing temporary, conditional relief under Regulation Crowdfunding (Regulation CF) that may aid small businesses affected by the COVID-19 pandemic. The temporary rules are aimed at getting eligible companies access to capital more quickly while relaxing some information requirements for capital raises between $107,000 and $250,000. The SEC provided a useful table summarizing the temporary rules vs. existing rules:
Michael Best’s Securities & Capital Markets team has experts who advise private companies on compliance with the SEC regulations. Michael Best’s Venture Best® team advises private companies of various sizes through the fundraising process. Please do not hesitate to contact a member of the Securities & Capital Markets or Venture Best® team for additional information on this temporary relief how it could assist your company through the COVID-19 pandemic.