So does it affect you? And if so how?
First the highlights of the JOBS Act compliments of security and regs attorney Morrie Simkin. (There’s a link to the whole article at the bottom
of the entry).
The JOBS Act (Jumpstart Our Business Startups Act), signed into law on April 5, 2012, has several parts.
— It will help companies with annual sales under $1,000,000,000 go public and file periodic reports with the SEC for up to five years after they go
— It will help a company making a private placement.
— It creates a crowd funding source for raising capital. Offerings under this part do not have to be registered with the Securities and Exchange
Commission (SEC) or any state, but they are subject to a maximum of $1,000,000 in any 12 months.
–It raises the limits for the small offering registration requirements under Regulation A of the Securities Act of 1933 (Securities Act) to
$50,000,000, and such offering is exempted from state registration requirements.
–The standard for when a company has to register a class of its securities under the Securities Exchange Act of 1934 (Securities Exchange
Act) has been raised.
Now, what’s it mean to a small business:
— When the SEC implements the JOBS Act by adopting the rules the law requires, it will make it easier for companies to go public (IPO) and to conduct private placements.
— However, if you are fund raising, the Act will make it more difficult for you because you will now have to report on a regular basis as well as
fund your own audits (which could run $30 – $40,000 a year).
–For the finders of the world (those who source money for a fee), there is no help in the JOBS Act. If you register as a finder, then you can neither
advertise your services nor can you collect success fees. So basically, you’re in the same place as you were before the Act.
To read the whole article … A User Friendly Primer on the JOBS Act For the Business Person and the
Capital Raiser and get additional analysis from the expert go to this link