House Subcommittee Addresses JOBS Act ImplementationApril 10, 2013
On Thursday, April 11, the House Small Business Subcommittee on Investigations, Oversight and Regulations held a hearing entitled, “JOBS Act Implementation Update.” The key topic of discussion at this hearing was the U.S. Securities and Exchange Commission’s (SEC’s) delay in implementing the law and the impact it has on small business.
It has been over a year since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law, and little, if anything, has been done to move forward with its implementation. Since the bill was signed into law on April 5, 2012, the SEC has missed two key deadlines: (1) a July 5, 2012 deadline for issuing a final rule for general solicitation for accredited investors, and (2) a December 31, 2012 deadline for issuing final rules on crowdfunding. If implemented properly, the JOBS Act could positively transform the ability of small businesses to raise capital and alleviate a disproportionate burden of compliance placed on small firms. If not, then the JOBS Act will just be another bill, in a long line of bills that had so much promise but so little effect.
“The ‘JOBS’ Act was intended to increase capital formation opportunities for small businesses,” said Subcommittee Chairman David Schweikert (R-Ariz.). “Sadly, delays by the SEC in setting out ground rules have kept these opportunities tied up in red tape on the sidelines. I hope that through better lines of communication and increased transparency we can devise a way to ease the creation and implementation of new opportunities that our small business community so desperately needs.”
Please click here to read past testimony from NSBA First Vice Chair, Jeff Van Winkle on the JOBS Act implementation.