A Comprehensive Study of Regulation A Offerings Since Implementation of the JOBS Act

The JOBS Act amended Regulation A to increase the maximum offering size of exempt securities from $5 to $50 million per year, eventually rising to $75 million. This study analyzes SEC Regulation A filings from July 2015 to December 2022 and finds a significant increase in qualified filings from an average of eight per year before the Act to over 160 annually in 2022. The study finds that 80 percent of the 1,471 Form 1-A filings obtained SEC qualification to issue securities. Qualified issuers were more likely to seek offering sizes consistent with financial fundamentals and signaled competency by utilizing professional advisors. Despite this, there remains a limited appetite for Regulation A offerings, which may be due to perceived high offering costs or a lack of awareness. This study provides insights that can assist policymakers in developing cost-effective financing options for small businesses while protecting investors and supporting economic growth