Online Filing Options Expanded for Businesses Raising Capital Through Securities

Online Filing Options Expanded for Businesses Raising Capital Through Securities

HARRISBURG, PA — Businesses that offer securities for sale to Pennsylvania investors or that are looking to start, now have more online filing options. The Pennsylvania Department of Banking and Securities (DoBS) announced enhancements to the North American Securities Administrators Association’s (NASAA) Electronic Filing Depository (EFD) System to accommodate the electronic filing of a greater range of corporation finance materials.

“Continuing to modernize and streamline the filing process allows Pennsylvania businesses and individuals to be more efficient in raising capital to start or expand their businesses,” said Acting Secretary Richard Vague. “The department’s Office of Corporation Finance staff are available to answer questions and assist business owners to successfully navigate this process.”

Businesses have several options when trying to raise capital to start, maintain, or expand their ventures, including raising money by selling shares to investors through the offering of securities. In Pennsylvania, all securities offered for sale must either be registered or granted exemptions.

These expanded filing options are even more important in light of the spread of COVID-19 when many businesses are relying more on remote working arrangements. Many filings previously required paper submission.

The new EFD functionality, referred to as “Universal Filing Type,” allows filers to submit electronic filings to DoBS for a variety of corporation finance offerings not previously available through the system, as well as to pay associated fees. These offerings include registrations by coordination and qualification, Regulation A (Tier 1 and Tier 2) and crowdfunding.

Developed by NASAA, of which DoBS is a member, the EFD System was launched in 2014 and used to facilitate the filing of Form D for regulation D, Rule 506 offerings with state securities regulators and to pay related fees. It was expanded last year to accommodate Form NF-UIT notice filings for unit investment trusts (UITs) with DoBS.

The EFD website also allows the public to search and view Reg. D Rule 506 and Form NF-UIT filings.

As part of its mission to encourage capital formation to foster a strong economy for its citizens and investors, DoBS works to help the small business community understand and comply with the laws governing the offer and sale of securities. Business owners seeking to offer securities for sale to Pennsylvania investors can contact the department’s Office of Corporation Finance at 717-787-8059.

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