SIE: Small Issues: Regulation A

Small Issues: Regulation A

As long as a business does not want to raise more than $75 million in equity or debt over a one-year period, the business can raise money under a Regulation A exemption from SEC registration. Regulation A exemptions are open to U.S. and Canadian issuers with a legitimate business plan. Regulation A is not open to investment companies or disqualified issuers.

Under Regulation A, a business does not have to file a complete SEC registration statement and prospectus. Instead, it files a shorter document called an offering statement, which is like a registration statement but less demanding in terms of the issuer's time and expense. The offering statement includes an offering circular, which is like a prospectus, but briefer.

Even before filing the offering statement, an issuer thinking about conductin