Senate Passes Bill to Ease SEC Reporting Rules on Rural Providers
Bill simplifies SEC reporting for providers with High-Cost support and assets under $10 million.
Jericho Casper
WASHINGTON, Dec. 5, 2024 – A bill designed to provide regulatory relief to rural broadband providers unanimously passed the Senate on Wednesday.
The ACCESS Rural America Act would amend the Securities Exchange Act of 1934 by offering smaller, locally owned broadband companies relief from costly SEC registration requirements and streamlined financial reporting requirements.
This change would allow these companies to focus more resources on expanding broadband infrastructure and services in underserved rural communities, supporting efforts to close the digital divide.
To qualify for the exemption, issuers must meet several specific criteria. First, they must have received funding through the Universal Service Fund’s High Cost Program, a $4.3 billion subsidy pool that provides financial support to telecommunications providers serving rural, insular, and high-cost areas.
Issuers must also file a financial summary with the SEC within 120 days of their fiscal year’s end, delivering it to all record holders. The summary must include a consolidated balance sheet, income statement, and any additional financially material information required by the SEC.
The securities must be held by more than 500 but fewer than 2,000 non-accredited investors, and the issuer’s total assets must not exceed $10 million, adjusted for inflation every five years. These criteria ensure the exemption is targeted to smaller, community-focused broadband providers.
NTCA–The Rural Broadband Association, representing nearly 850 independent, community-based telecommunications companies across 46 states, issued a statement in support of the legislation. Every NTCA member receives High Cost support, a spokeswoman said.
“Federal Securities and Exchange Commission registration and reporting requirements intended for larger, publicly traded firms pose significant challenges for, and can impose substantial burdens on, smaller, locally owned companies with limited resources,” NTCA CEO Shirley Bloomfield said.
She added, “NTCA therefore greatly appreciates the leadership of Sens. [Tammy] Baldwin and [Joni] Ernst in introducing and passing the ACCESS Rural America Act, which will help relieve these burdens and enable small providers to focus more on their core mission of deploying and operating advanced broadband networks in rural areas.”
Baldwin is a Wisconsin Democrat and Ernst an Iowa Republican.
