Starting up and operating a small business has many challenges. Knowledge of rules and regulations is one of the most challenging activities for many small business owners. The U.S. Securities and Exchange Commission (SEC) provides a range of resources to help small businesses in complying with regulations for raising capital, financial reporting and navigating the regulatory landscape in general.
The SEC has an Office of Small Business Policy.1 This office, part of the SEC’s Division of Corporation Finance, is charged with assisting companies seeking to raise capital through exempt or smaller registered offerings and has staff members available to answer questions on issues related to smaller public companies, exempt offerings of securities, and other federal securities laws that may affect small businesses.
The SEC also has a committee — the Small Business Capital Formation Advisory Committee — which identifies small business challenges and proposes solutions to enhance capital accessibility.2
The committee also provides the SEC with advice on policies and regulations that affect small businesses. The SEC also has an Office of the Advocate for Small Business Capital Formation which helps small businesses and their investors grow companies using the capital markets.3
The SEC provides a one-stop resource for small businesses at its Capital Raising Hub click here.4. This online resource takes small businesses step-by-step through the various stages from start-up to small cap, equipping small businesses with the tools to legally navigate raising capital.
Topics include: Funding Roadmap; Navigate Your Options; Capital-Raising Building Blocks; Exempt Offerings; Going Public; and a Glossary. Also included are Capital Trend Maps, Research Reports, Videos and Additional Resources.
Another key source of information for small businesses can be found online at click here 5. There are over 80 guides listed which cover a range of topics such as:
- Registration of (Crowd) Funding Portals: A Small Entity Compliance Guide
- Identity Theft Red Flag Rules: A Small Entity Compliance Guide
- Insider Trading Arrangements and Related Disclosures
While navigating all the rules and regulations is a difficult task for small businesses, the SEC is working to make regulatory compliance less confusing and burdensome. When in doubt, consult the Capital Raising Hub or contact the SEC Office of Small Business Policy where staff will answer any questions you may have.
Royal Oak Securities Fraud Attorneys
Our Royal Oak based securities law firm is deeply committed to maintaining integrity, trust, and accountability in the financial markets. As experienced securities fraud attorneys, we focus on combating investment fraud, protecting clients from scams, and seeking justice for those affected by broker misconduct.
Own a business or have questions about your portfolio? Contact our Michigan securities law team for a free consultation to review your options.
__________________________
1 Office of Small Business Policy Division of Corporation Finance
Link: https://www.sec.gov/about/divisions-offices/division-corporation-finance/office-small-business-policy-division-corporation-finance
2 Small Business Capital Formation Advisory Committee
Link: https://www.sec.gov/about/advisory-committees/small-business-capital-formation-advisory-committee
3 Office of the Advocate for Small Business Capital Formation
Link: https://www.sec.gov/about/divisions-offices/office-advocate-small-business-capital-formation
4 Resources for Small Businesses
Link: hhttps://www.sec.gov/resources-small-businessesttps://www.sec.gov/about/advisory-committees/small-business-capital-formation-advisory-committee
5 Small Business Compliance Guides
Link: https://www.sec.gov/resources-small-businesses/small-business-compliance-guides