The House of Representatives has passed the Senate version of the Jump Start Business Startups Act ,or JOBS Act, and President Obama is expected to sign the legislation.
Some principal components of the JOBS Act include:
- Provide an exemption for crowdfunding by permitting sales of not more than $1,000,000 in any twelve month period.
- Facilitate initial public offerings and subsequent Exchange Act compliance for “emerging growth companies.”
- Eliminating the prohibition on general solicitation (a/k/a advertising) for Rule 506 Regulation D offerings and sales under Rule 144A.
- Increasing the Regulation A threshold to $50,000,000.
- Increase the threshold for registration under the Securities Exchange Act to 2,000 persons or 500 persons who are not accredited investors.
Check jobs-act-info.com frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.