May 2, 2022

Revenue Cap for Emerging Growth Companies: Increase Imminent?

An observant member posted this question last week in our “Q&A Forum” (#11,109):

Does anyone have insight into when the SEC will be raising the annual gross revenue cap for a company to qualify as an emerging growth company? The JOBS Act requires the SEC to index to inflation the revenue cap every five years, and the last adjustment (from $1.0B to $1.07B) was on March 31, 2017, effective April 12, 2017 when it was published in the Federal Register.

John noted:

I have not heard anything on this, but the 10th anniversary of the JOBS Act was April 5th, so I would expect the SEC to issue something in the very near future.

It’s hard to believe that the JOBS Act is 10 years old. We have Practice Areas for “Emerging Growth Companies” and for the “JOBS Act” (and the related FAST Act) for any members looking for instruction on how to apply these regulations.

Liz Dunshee