Helping Startups Continue To Grow Act
Summary
H.R. 3323 would modify federal securities regulations to provide more favorable treatment for startup companies. Specifically, the bill would increase the revenue threshold that qualifies a company as an emerging growth company from $1 billion to $3 billion in annual revenue. It would also extend the period during which companies can maintain emerging growth company status from 5 years to 10 years after going public. Emerging growth companies receive certain exemptions and reduced disclosure requirements under federal securities law, which are intended to lower the regulatory burden on newer public companies.
Proponents argue these changes would help startups and growing companies access capital markets more easily and maintain their growth trajectory without excessive regulatory costs. The bill has already passed committee review and is eligible for a floor vote in the House. If enacted, it would primarily affect companies in the startup and early-growth phases that are raising capital through public offerings. The Congressional Budget Office estimates implementation costs would be minimal, likely less than $500,000 over five years.
