Small Business Relief Act

The "Small Business Relief Act" proposes significant amendments to the Securities Exchange Act of 1934, specifically targeting the criteria for mandatory registration. Its primary purpose is to modify how the number of security holders is counted when determining if a company must register its securities with the SEC. Under this bill, qualified institutional buyers and institutional accredited investors would no longer be included in the calculation of security holders for the mandatory registration threshold. This change aims to provide relief to businesses by allowing them to attract more institutional investment without triggering the costly and complex public reporting requirements. The bill also specifies that the SEC's general exemptive authority will not apply to these new exclusions, ensuring the permanence of this regulatory adjustment.