Entrepreneurs and small business advocates are not too happy with the recent proposed rule of the Securities and Exchange Commission requiring private placement issuers to file solicitation materials.  In public comments filed with the SEC regarding the proposal, advocates say that this regulation would result to small companies raising less capital. The proposed rule requires that the filings, excluding oral communications, be uploaded to the SEC website's intake page by the date that it will be first used. It will expire after two years and will not be made available to the public.

In a long letter to the SEC, CrowdCheck Inc. CEO and co-founder Sara Hanks says that the lack of understanding of securities laws of some small securities issuers will lead to non-filing of many solicitation materials. "This imposes a significant burden on the founders of small issuers, whose focus should be on running their companies and making sure that their communications are complete and accurate, not on uploading large, continually changing files to the commission," she also wrote.