ILN Today Post
August 28, 2012
The Jumpstart Our Business Startups (JOBS) Act, which was signed by President Obama
on April 5, 2012, could significantly improve fundraising prospects for many businesses.
The regulatory requirements currently affecting financing efforts by companies in the United States are often characterized as overly burdensome and expensive, discouraging entrepreneurship and economic growth. The JOBS Act promises to alleviate some of these
regulatory burdens by loosening registration requirements under the Securities Act of 1933 (the Securities Act), and the Securities Exchange Act of 1934 (the Exchange Act). More…
ILN Today Post
May 4, 2012
On April 6, 2012, President Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, which is intended to facilitate job growth by increasing access to private and public capital.
The JOBS Act can be broken into five principal subparts: More…
April 16, 2012
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act or JOBS Act. In light of the sharp decline in the number of companies entering the U.S. capital markets through IPOs over the last ten years, Congress recognized a need for this legislation since small companies are critical to economic growth and job creation. To promote growth and assist small companies in gaining access to capital, the JOBS Act amends the securities laws in several ways, which include the following:
(i) Establishes a new category of issuers known as “Emerging Growth Companies” (EGCs) which are issuers that have total annual gross revenues of less than $1 billion (after December 8, 2011). EGCs are exempt from certain regulatory requirements until the earliest of the date (a) five years from the date of their IPO, (b) they have $1 billion in annual gross revenue or (c) they become a large accelerated filer (i.e. a company with worldwide public float of $700 million or more);