Federal Legislation
Congress Increases Regulation A+ Capital Limits
February 25, 2026
Congress has passed the Regulation A+ Improvement Act of 2025, significantly raising the capital raising limits under SEC Regulation A to facilitate greater access to public capital markets for small and scaling businesses. The Act increases Tier 1 offering limits from $5 million to $50 million and Tier 2 offering limits from $50 million to $150 million, including affiliate sales limits. It also mandates the Securities and Exchange Commission (SEC) to adjust these thresholds for inflation every five years, ensuring the limits remain relevant over time without requiring burdensome IPO processes.
- Why this matters: Procurement professionals and contractors should note that increased capital availability may stimulate growth and innovation among small businesses, potentially expanding the pool of qualified vendors and subcontractors.
- The SEC's inflation adjustment mandate introduces a predictable mechanism for future capital limit updates, which may influence long-term procurement planning and vendor financial stability assessments.
- Organizations involved in capital markets, financial services, and regulatory compliance should evaluate how these changes affect funding strategies and market entry opportunities.
- Procurement teams may find increased opportunities to engage with emerging companies benefiting from eased capital formation, impacting competitive dynamics and contract sourcing.
This bill would allow for private companies to raise even more money without providing the full panoply of disclosures that our securities laws require for public issuers, to the detriment of investor and market transparency.
— Ranking Member Maxine Waters
Agencies
Securities and Exchange Commission, Committee on Financial Services, Subcommittee on Capital Markets, Committee on Banking, Housing, and Urban Affairs, Alabama Securities Commission
Locations
Sources
- H. Rept. 119-526 - REGULATION A+ IMPROVEMENT ACT OF 2025 · congress · Feb 25
- H. Rept. 119-526 - REGULATION A+ IMPROVEMENT ACT OF 2025 · congress · Feb 25
- H. Rept. 119-526 - REGULATION A+ IMPROVEMENT ACT OF 2025 · congress · Feb 25