President Obama Signs Jumpstart Our Business Startups (JOBS) Act
On Thursday, April 5, President Barack Obama signed the Jumpstart Our Business Startups (JOBS) Act, a bipartisan bill that will help encourage startups and support small businesses in the U.S. The Act promotes American entrepreneurship and innovation while maintaining important protections for U.S. investors.
Key elements of the JOBS Act include allowing small businesses to harness crowdfunding to raise up to $1 million annually from many small-dollar investors through Web-based platforms, expanding the threshold for mini public offerings from $5 million to $50 million, and making it easier for emerging growth companies to go public by providing them more time to reach compliance with public company disclosure and auditing requirements, including Sarbanes-Oxley requirements. The JOBS Act also changes some existing limitations on how companies can solicit private investments from accredited investors, tasks the Securities and Exchange Commission to ensure that companies take necessary steps to verify that investors are accredited, and gives companies more flexibility to plan their access to public markets and incentivize employees.