The SEC has adopted final rules, Inflation Adjustments under Titles I and III of the Jobs Act, for inflation adjustments for annual gross revenue for the determination of an emerging growth company (EGC) and for the crowdfunding exception as required by the Jumpstart Our Business Startups (JOBS) Act.
Every five years, to reflect the changes in inflation, the SEC is required to index to inflation the annual gross revenue amount to determine the EGC status of an entity. The amendment has increased annual gross revenue for this purpose from $1,070,000,000 to $1,235,000,000.
The SEC is also required to adjust, for inflation, the dollar amounts used in connection with the crowdfunding exception at least once every five years.
The following sets out the inflation adjusted amounts in Rule 100 of Regulation Crowdfunding for offering maximum and investment limits: