Congress·In Progress·H.R. 4171

Small Business: Raising Money Without Paperwork

SEED Act of 2025

Legislative Progress

House

Senate

President

Law

The SEED Act helps small businesses and startups raise money more easily. It allows a company to collect up to $250,000 from investors over a 12-month period without having to file the long, expensive reports usually required by the federal government.
Right now, the cost of hiring lawyers to handle government paperwork can be too high for a tiny business. This bill removes those hurdles for very small investments, making it cheaper for entrepreneurs to get the cash they need to grow.
To protect the public, the bill keeps rules in place that prevent lying to investors. This means that even though there is less paperwork, it is still illegal for a business owner to trick people into giving up their money or provide false information about the company.
The bill also blocks people with a history of dishonesty from using this shortcut. Anyone who has been convicted of a financial crime or banned by state or federal regulators for bad behavior in the last 10 years cannot use this easier process to raise money.
This change would also stop individual states from creating their own complicated rules for these small investments. This ensures that a small business only has to follow one simple set of federal rules instead of different ones for every state they find investors in.

3 milestones4 actions

Mar 4, 2026House

Ordered to be Reported by the Yeas and Nays: 26 - 17.

Mar 4, 2026House

Committee Consideration and Mark-up Session Held

Jun 26, 2025House

Referred to the House Committee on Financial Services.

Jun 26, 2025

Introduced in House

Document Type

Congressional Bill

Official Title

SEED Act of 2025

Bill NumberHR 4171

Congress119th Congress

ChamberHouse of Representatives

Latest ActionOrdered to be Reported by the Yeas and Nays: 26 - 17.

Congress.gov

Official legislative information

Analysis generated by AI. Always verify with official sources.