The Securities and Exchange Commission (SEC) is providing temporary conditional relief for established smaller companies that turn to crowdfunding as a means of surviving the COVID-19 pandemic.
The SEC’s recent actions expedite the offering process for eligible companies by providing relief from certain rules with respect to the timing of a company's offering and the financial statements required.
To take advantage of the rules, a business must meet enhanced eligibility requirements and provide clear, prominent disclosure to investors about its reliance on the relief.
The relief will apply to offerings launched between the effective date of the temporary rules and Aug. 31, 2020.