Kyle Hulten wrote recently on the iVLG blog about new developments to the JOBS Act. For those of you not familiar with the JOBS Act, here’s a summary of Title II (equity crowdfunding) and Title III (crowdfunding) of the act. In a nutshell, the Jumpstart Our Business Startups Act was passed to provide businesses easier access to a wider pool (the public, or “crowd”) of investors. As part of the JOBS Act, the SEC lifted the 80+ year old ban on general solicitation (i.e. public advertising) of securities offerings–private companies had not been able to advertise that they were seeking to raise capital from investors.
It has been a long road since the act was signed by President Obama in April 2012. The SEC has been given the task of passing rules that will govern how this act will be utilized. And unfortunately, the SEC has missed all of its deadlines in proposing and finalizing the rules.
The U.S. House Financial Services Committee recently held a hearing to discuss implementing wide-scale changes to the JOBS Act, including changes to Title II (equity crowdfunding), Title III (crowdfunding), and additional securities regulations. If these changes are implemented, we won’t be starting from scratch, but there will be major changes to the SEC’s proposed and final rules.
To learn more about all the changes proposed by Rep. Patrick McHenry–and a great video with McHenry discussing why we need changes to the crowdfunding legislation–check out Kyle’s full article at the iVLG blog.
If you’d like to discuss crowdfunding and how it may impact your small business, please contact me or comment below.
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