The SEC proposed rules under the JOBS Act intended to increase access to capital for smaller companies, including community banks. The proposal creates a new offering tier, called Tier 2, under Regulation A that raises the registration exemption threshold from $5 million to $50 million within a 12-month period.
Banks electing to offer securities under the higher-exemption Tier 2 would be required to submit audited financial statements and file regular reports. Tier 2 offerings would also preempt state securities regulations. Comments will be accepted for 60 days after the proposal is published in the Federal Register.