Update on the JOBS Act and Its Impact on Crowdfunding
Posted on 04.29.13
By Peter N. Thacker, CPA/ABV/CFF, ASA, CFE
April 5, 2013 marked the one year anniversary of President Obama’s signing of the Jumpstart Our Business Startups (JOBS) Act into law after the legislation received bipartisan support in Congress. With its stated goal of making it easier for small businesses to access capital, the JOBS Act was enthusiastically embraced by the start-up community.
The JOBS Act included a provision that allows a company to have up to 1,000 shareholders of record before the company is required to register its common stock with the Securities and Exchange Commission (SEC). Further, the JOBS Act lessened the regulatory and disclosure requirements that an “emerging growth company” must put forth in its registration statement when it files to go public and five years thereafter. Although the aforementioned provisions of the JOBS Act took effect immediately, other provisions will not become effective until the SEC enacts rules that govern their implementation. Read more