The Securities and Exchange Commission has eased several rules surrounding exempt offerings, turning them into even more effective tools for companies seeking capital from the sale of securities without the regulatory burdens and legal costs associated with a traditional stock offering.
Proposed in March and approved in early November, the changes include a major expansion of Regulation A and of crowdfunding and could prove particularly useful to businesses—especially emerging, small and midsized players—struggling to raise funds amid the economic disruption caused by the COVID-19 pandemic.
