The U.S. Senate is voting for the JOBS Act on Tuesday. The Jumpstart Our Business Startups Act (JOBS Act) is a series of 6 U.S. federal law bills to change Securities rules that are enforced by the U.S. SEC that relates to small businesses and startups. If you are in support of the JOBS Act, you can urge Senate to pass the bill by visiting this website on Angel.co (http://angel.co/jobs-act). These are the main bullet-points of the bill:
– Increase the number of shareholders a company may have before going public from 500 to 1,000
Note: This was an issue with Facebook. When Goldman Sachs invested in Facebook through a $1.5 billion investment vehicle, the social network technically would have more than 500 investors. This is pressuring them into going public.
– To allow small businesses to sell stock to persons (non-accredited investors) in amounts that are up to $10,000 or 10% of their annual income (Crowd funding)
– To allow small companies to publicly advertise for investors.
– To raise the limit for securities offerings exempted under Rule 505 of Regulation D from $5 million to $50 million, which would allow for larger fundraising efforts under this regulation.