Senate Passes Jobs Act, Moves to House
March 23, 2012
Yesterday, the Senate passed the bill, but with a few new amendments. Since there are new amendments it will be brought to a vote in the House, where it is expected to pass early next week. Once it passes in the House, it will be signed by President Obama and become a law.
The JOBS Act will do a number of things to help small businesses, but here are some of its most important aspects:
- Designate a new category of “emerging growth” companies that could conduct public offerings of stock while being exempt from certain government requirements for up to 5 years.
- Allow small companies to “crowd-fund,” which means that they can sell cheap stock to a large amount of investors.
- Allow companies to ask for equity investments through the internet and raise up to $1 million annually without being required to register the shares for public trading.