June 23, 2022
EGCs: Status of Revenue Cap Adjustment?
While we’re on the topic of action-packed regulatory agendas, I’m beginning to wonder if the five-year inflation adjustment to the JOBS Act’s emerging growth company revenue cap may have gotten lost in the rulemaking shuffle? As a reminder, the JOBS Act requires the SEC every five years to index to inflation the annual gross revenue amount used to determine EGC status in order to reflect changes in the Consumer Price Index.
The last adjustment was made in April 2017 and coincided almost exactly with the fifth anniversary of the JOBS Act. We recently celebrated the statute’s 10th anniversary, but the SEC hasn’t announced the inflation adjustment yet. This isn’t a crisis for most companies, but as Liz blogged early last month, people are keeping an eye out for the updated cap number.
– John Jenkins