Yesterday, President Obama signed the much-anticipated Jumpstart Our Business Startups (JOBS) Act. The bill, which is intended to boost startups and small businesses, includes provisions that allow for crowdfunding, mini-IPOs, and IPO on-ramps, among other things. "America's high-growth entrepreneurs and small businesses play a vital role in creating jobs and growing the economy," President Obama said in a statement. "I'm pleased Congress took bipartisan action to pass this bill. These proposals will help entrepreneurs raise the capital they need to put Americans back to work and create an economy that's built to last."
Just a few of the provisions in the JOBS Acts included is a federal Kickstarter of sorts, or crowdfunding. Startups and small businesses will be allowed to raise up to $1 million from small-dollar investments via Web-based platforms that are monitored by the Securities and Exchange Commission. The bill also changes some existing limitations on how companies can solicit private investments from 'accredited investors,' tasks the SEC with ensuring that companies take reasonable steps to verify that such investors are accredited, and gives companies more flexibility to plan their access to public markets and incentivize employees.
Two months after Obama proposed the Startup America Legislative Agenda, which includes many of the provisions now in the JOBS Act, the road to recovery seems to be taking shape.