The EGC designation, established under the Jumpstart Our Business Startups (JOBS) Act of 2012, makes it easier for small and growing businesses—specifically those on track for an initial public offering—to attract investors and access capital by relaxing regulatory requirements and cutting some red tape. Another provision of the JOBS act was a mandate for the PCAOB to report via white papers, semiannually, on the extent to which EGCs actually benefitted from regulatory relief, and any unintended consequences stemming from the more permissive environment.
This article highlights some of the key findings and takeaways from the PCAOB’s March white paper.