The House of Representatives passed the Crowdfunding Amendments Act (H.R. 4860), which would expand permissible uses of crowdfunding.

Representative Patrick McHenry (R-NC), who introduced the bill alongside Maxine Waters (D-CA), said that it was designed to reverse the decline of small-business lending and loans by encouraging investment crowdfunding. Specifically, the bill would:

  • incentivize high-growth companies to use crowdfunding by increasing the asset threshold for (i) small businesses with existing revenue and (ii) startups without revenue; and

  • allow the use of single-purpose funds (wherein groups of people make joint investments in a holding company that makes one investment in the issuer), which are not currently allowed by the SEC.