“In the current environment, many established small businesses are facing challenges accessing urgently needed capital in a timely and cost-effective manner,” said SEC Chairman Jay Clayton. “Today’s action responds to feedback we have received from our Small Business Capital Formation Advisory Committee and others about the difficulties these companies may face in conducting an offering within a time frame that meets pressing capital needs, while continuing to provide appropriate protections for investors.

Key changes include the following:

1. Companies raising up to $250,000 will only need to self-certify the financials as opposed to spending time and money on a comprehensive CPA review
2. Removing this will expedite the process to list an offering
3. 21 days waiting period to take commitments has been temporarily removed and
4. Offerings can close sooner than the campaign deadline date as long as the target offering amount has been reach

The USA Public-Private Partnership to Save Small Business

SUMMARY

This program would create a co-funding facility specifically for Main Street USA businesses. The federal government would match up to $250,000 per business, in funds raised from their communities via private sector online funding platforms that are currently permitted by the JOBS Act, passed by bipartisan majorities in 2012. Online financing started in 2016 and since then, communities have raised over $370,000,000 for American small businesses, with no fraud.

WHY IS THIS PROGRAM NEEDED?

This powerful program tackles many of the problems with the existing stimulus programs to efficiently and transparently deliver capital to true small businesses across the U.S. because it:

• Is permitted under existing securities policy and SEC regulation.

• Engages local communities to support local businesses they believe in.
• Can benefit up to 500,000 Main Street businesses within 60 days allowing for the re-employing of million Americans.
• Leverages existing multiple private-sector technology platforms that:
  • Have experienced NO FRAUD in 4+ years.
  • Were built specifically to deliver funding to small businesses.
  • Do not rely on one system (the SBA loan process) that crashes frequently.
• Provides transparency and weekly reporting of all loans/investments.
• Provides an alternative funding resource to small businesses in need.
• Focuses on Main Street USA Businesses which will, by default, prevent large enterprises that need large sums of capital from using this program.
• Replicates a similar, very successful program in the United Kingdom.

WHAT ARE THE NEXT STEPS TO ENACT THIS PROGRAM?

1. Agree that a co-funding facility for American small businesses can create jobs, save small businesses and rebuild  local economies.
2. Approve funding for a “Phase 1 Program” (a $20 billion program would benefit up to 80,000 small businesses).
3. Include language in the next recovery bill that clarifies the JOBS Act regarding these types of collective funding vehicles are explicitly permitted.
4. Approve the framework that explains how existing portals may register, businesses may apply, determines targets and specifies fund distribution timeline and requirements.
5. Use existing data standards and reporting to create transparency via weekly reporting to federal/state governments and the public.