Top 10 Practice Tips: Emerging Growth Companies

Summary

This practice note provides 10 practice tips that can help you determine whether a company qualifies as an emerging growth company (EGC) and the benefits and exemptions available if it does. The passage of the Jumpstart Our Business Startups Act (112 P.L. 106, 126 Stat. 306 (JOBS Act) in April 2012 introduced a new classification of companies to the U.S. securities laws. One of the JOBS Act's goals for this new class, known as EGCs, was to promote more public companies in the United States by providing EGCs benefits and exemptions during, and potentially for up to five years following, a company's initial public offering (IPO). In December 2015, the Fixing America's Surface Transportation Act (114 P.L. 94) (FAST Act) included several amendments to the federal securities laws that sought to further this goal.