# Summary of S. 5139: Empowering Main Street in America Act of 2024
This bill makes sweeping changes to securities regulations to help small businesses raise capital and give ordinary Americans more investment opportunities. It modifies federal laws governing how startups and small companies can offer securities to the public and expands who qualifies as an accredited investor able to participate in private investments.
The bill raises thresholds and loosens restrictions on emerging growth companies, creates a new "micro-offering" exemption allowing companies to raise up to $500,000 without full registration, and expands crowdfunding rules. It introduces new roles called "finders" and "private placement brokers" who can connect small businesses with investors without heavy regulatory oversight. The legislation also increases investor caps for private investment funds and allows closed-end investment companies to invest in private funds more freely.
On investor protections, the bill creates a way for ordinary people to become accredited investors by passing an SEC-approved exam and expands the definition of accredited investor to include people with $500,000 in investments. It requires the SEC to study financial statement readability and capital formation barriers for small businesses, and mandates the SEC publish annual data about securities markets.
Finally, the bill increases oversight of the SEC itself by requiring the chairman to testify before Congress semiannually and submit detailed reports on the agency's activities and regulatory costs. It also subjects SEC rulemaking to stricter cost-benefit analysis requirements and makes the SEC Inspector General subject to Senate confirmation.
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