President Obama Signs JOBS Act into Law
05 Apr, 2012, 02:06 ET
TechNet: New Law Will Spur More IPOs, Create More Jobs
WASHINGTON, April 5, 2012 /PRNewswire-USNewswire/ -- TechNet, the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today thanked President Obama for quickly signing into law the Jumpstart Our Business Startups Act (JOBS Act), legislation that will make it easier for high-growth firms to raise capital.
The President's signature is a welcome development for emerging companies that have been dissuaded from entering the public markets because of the cumulative effect of one-size-fits-all regulations that are disproportionately burdensome to small companies. The new law preserves investor protections but creates an on-ramp for emerging growth companies by providing some temporary relief from regulatory and communications burdens.
The legislation is the culmination of years of thoughtful work and advocacy by a broad group of professionals from throughout the capital markets community, including TechNet members. It received broad, bipartisan support in Congress and includes provisions supported by the Obama Administration.
"This is a significant step forward in creating good American jobs," said Rey Ramsey, President and CEO of TechNet. "Nine out of ten jobs created at an emerging growth company come after the IPO. By providing temporary relief on some of the most costly compliance regulations, this bill preserves key investor protections while making it easier for small companies with big potential to go public sooner and raise the capital necessary to keep growing and creating jobs.
"This bill will go a long way in reviving the IPO market, the broader capital markets and, hence, the broader U.S. economy. It shows that the White House and Congress can work together to improve existing policy and advance U.S. competitiveness."
The legislation does the following:
- Encourages more firms to file initial public offerings by allowing emerging growth businesses, those with less than $1 billion in annual revenue, to phase-in some of the most expensive Securities and Exchange Commission regulations over the first five years after going public;
- Enables companies to offer up to $50 million in stock to the public without registering with the SEC, an update from the previous threshold of $5 million that better reflects today's markets;
- Allows small companies selling securities under the SEC's Regulation D to advertise their offerings, reversing the SEC's ban on solicitation.
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet's members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin. Web address: www.technet.org. You can also follow us on Facebook and Twitter at @technetupdate.
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