WASHINGTON, March 20, 2012 /PRNewswire-USNewswire/ --A vote in the United States Senate is expected today or tomorrow on the Jumpstart Our Business Startup Act (JOBS Act), H.R. 3606, a package of important capital formation reforms supported by President Barack Obama. The legislation passed the U.S. House of Representatives with overwhelming bipartisan support (390-23) on March 8, 2012. Entrepreneurs and small business owners are galvanized about this important legislation, and are working to ensure the package sails through the U.S. Senate.
The JOBS Act includes practical measures to update archaic Securities and Exchange Commission (SEC) rules, and helps to construct a new regulatory framework that leverages technological innovations and practices that will open new pools of capital for small businesses. Besides reforming regulations that will make it less costly and burdensome for small firms to go public and accelerate their growth in the public markets, the legislation allows for crowdfund investing which presents new opportunities for entrepreneurs to access capital.
"Crowdfunding and the JOBS Act need to pass so we can get capital to our nation's job creators. This important piece of legislation addresses the startup and seed-funding gap that was left after the financial meltdown of 2008. It will allow the community to step in and fund fraud-free entrepreneurs and small businesses. Main Street will be able to evaluate becoming investors in our nation's neighborhood shops or the next great startups and will also share in that prosperity," said Woodie Neiss, founder of Startup Exemption, who developed a crowdfunding framework upon which the legislation is based upon.
According to Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan, Democrats and Republicans not only listened to entrepreneurs regarding their plight on the issue of capital access, but they also found assurance in solutions that protect investors through new technologies, as well as a modern regulatory framework that will increase transparency and investor engagement.
"The legislation provides a sensible regulatory approach that takes into account the power of technology and the 'sunshine' capabilities of social media in protecting investors. Key reforms provide regulatory flexibility and relief, and will enable capital formation. A strong entrepreneurial ecosystem depends on access to capital. Freeing up new sources of capital – as the JOBS Act will do – will strengthen our nation's small business sector, and add to their job creating capacity," said Kerrigan
The Senate is expected to vote on H.R. 3606, the JOBS Act, either later today or tomorrow following votes on a Democrat alternative (Reed Amendment) to the JOBS Act and an amendment to fully fund the Export-Import Bank.
For more information and background about the JOBS Act, or crowdfunding and crowdfund investing, please visit www.sbecouncil.org or call 703-242-5840.
SBE Council is a nonprofit, nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit: www.sbecouncil.org.
Startup Exemption is an initiative founded in January 2011 by three successful entrepreneurs. Sherwood Neiss, Jason Best and Zak Cassady-Dorion, to update current securities laws to make equity-based crowdfunding legal in the U.S. This tram created the proposed regulatory framework that is the basis of the bills currently being debated in Congress. More information can be found at www.startupexemption.com.
CONTACT: Karen Kerrigan
SOURCE Small Business & Entrepreneurship Council