Pennsylvania Sen. Dave McCormick introduced bipartisan legislation on Thursday to reduce financial barriers for early-stage entrepreneurs.
Sen. McCormick and New Jersey Democratic Sen. Andy Kim teamed up to introduce the Amendment for Crowdfunding Capital Enhancement and Small-business Support (ACCESS) Act. This would raise the crowdfunding limit from $100,000 to $250,000 before companies need to hire an outside accountant to review their statements.
It would allow early-stage startups to raise more funds from the public before paying fees for financial oversight.
“Crowdfunding can be particularly valuable for Pennsylvania entrepreneurs who may not qualify for traditional financing or want to validate market demand before fully launching,” Sen. McCormick said in the announcement. “By removing unnecessary barriers while maintaining investor protections, we’re unlocking greater capital for new businesses to take root in Pennsylvania and across the country.”
Startups and early-stage companies raising $100,000 are currently required to have financial statements reviewed by a certified public accountant before they begin crowdfunding. But the average cost per filing is about $10,000, which can significantly cut into an early-stage startup’s capital.
Late last year, the House of Representatives passed the INVEST Act, a bundle of bills that included the ACCESS Act. While that awaits a vote in the Senate, McCormick has introduced the ACCESS Act separately.
If the act were to pass, it could make a big difference in Pennsylvania, since it’s among the top states for crowdfunding activity.
The ACCESS Act would also allow the Securities and Exchange Commission (SEC) to increase how much an individual can invest in crowdfunding offerings each year. The SEC’s internal advisory offices would recommend the final limit, but the senators are proposing raising it from $250,000 to no more than $400,000.
“Too often startups and small businesses face red tape and obstacles to capital that is a critical tool to their success, and in turn, their ability to give back to our communities,” Sen. Kim said in the release. “By modernizing outdated ‘one-size-fits-all’ requirements, we open doors for businesses and investors of all sizes and backgrounds to grow, while still looking after the overall stability and strength of our financial markets.”
Crowdfunding jumps in popularity
The ACCESS Act builds on a trend of legislators aiming to simplify crowdfunding rules for startups.
Before Congress passed the Jumpstart Our Business Startups (JOBS) Act in 2012, companies had to complete a registration process with the SEC before selling shares to the public. The JOBS Act lets startups raise smaller amounts from regular people through investment websites like Kickstarter or Pittsburgh startup Honeycomb Credit.
Since 2016, these rules have helped over 6,500 early-stage companies raise nearly $2.4 billion across 8,400 investment rounds, according to Sen. McCormick’s office.
Now, raising money from everyday individuals is having a moment, George Cook, cofounder and CEO of Honeycomb, told Technical.ly.
“Honeycomb has been advocating for exactly this kind of reform,” Cook said. “As a member of the SEC’s Small Business Capital Formation Advisory Committee, we recommended in July 2024 that the SEC raise the threshold requiring costly financial reviews. [It’s] the same change this bill would make, so we’re very excited to see Pennsylvania’s senator coming out as a leading advocate.”
A major friction point for early-stage businesses is the cost of financial reviews for smaller raises, according to Cook, and this comes at a time when traditional lending has become increasingly inaccessible.
Large bank approval rates for small business loans have fallen from about 28% in 2019 to about 13% in 2025. Crowdfunding seems to be filling some of these gaps, with investment crowdfunding jumping 58% in 2025 compared to the previous year.
“We see this legislation as a practical step toward expanding access to fair capital,” Cook said, “creating wealth-building opportunities in local communities and helping businesses and projects that traditional lenders continue to overlook.”
