Under the proposed changes, the minimum annual income for an accredited investor would have increased from $200,000 to $450,000, and minimum assets would have increased from $1 million to $2.3 million. Experts estimated the changes would have eliminated between half and two-thirds of current angel investors from being able to invest in small businesses.
In May, a bipartisan amendment sponsored by Dodd and other senators restored the definition of “Accredited Investor” to the former income and asset levels, with just one change: a primary residence can no longer be listed as an asset. The 120-day waiting period was removed; instead, the amendment directs the SEC to issue rules within one year for disqualifying offerings and securities sales involving “bad actors” (people with a record of violating certain federal or state laws).
