Deadline to Submit Crowdfunding Comments ApproachingJanuary 16, 2014
On October 23, 2013, the U.S. Securities and Exchange Commission (SEC) issued their proposed rules on crowdfunding, pursuant to Title III of the JOBS Act. If implemented properly and without unreasonable regulatory requirements, crowdfunding could transform small business’s ability to raise much-needed capital to expand their firms, hire new employees and maintain sustainable economic growth. Unfortunately, based on NSBA’s initial assessment of the proposed rules, that does not appear to be the case.
Comments on the proposed rules are due February 3, 2014. It will likely take the SEC several months to comb through all of the comments, so there is no timetable yet on when the Commission would issue final rules to effectively legalize the practice of crowdfunding, as defined in the rules and intended in the JOBS Act. NSBA is encouraging its members to voice their concerns with staff, so that they may be incorporated in the NSBA comment letter.