NSBA Applauds Passage of JOBS ActMarch 22, 2012
The National Small Business Association applauds the Senate for bipartisan passage (73-26) of the JOBS Act today. Although not identical to the House-passed version, the amended Senate bill will, without question, positively transform the ability of small businesses to raise capital and help companies generate sustainable economic growth and jobs.
“There is a direct correlation between job growth and small-business owners’ ability to garner financing,” stated NSBA President and CEO Todd McCracken. “This is the right bill at the right time, and we applaud the Senate for moving beyond partisan politics to pass this very important legislation.
The JOBS Act will put in place several provisions of great importance to America’s small businesses, including: a crowdfunding exemption allowing small companies to raise up to $1 million in a 12-month period and preempt state blue sky laws; the creation of an IPO OnRamp; an increase of the aggregate offering amount of all securities sold under Regulation A from $5 million to $50 million; and language allowing for general solicitation or general advertising to find accredited investors. Together, these provisions will provide significant relief for a small-businesses community that has been struggling to find financing throughout the economic downturn.
Unfortunately, the Senate came up short of the needed votes to approve an amendment that would have included language to reauthorize the U.S. Export-Import Bank (Ex-Im Bank) in the overall package. Ex-Im Bank currently has more business in its pipeline than it can support which could lead to program stoppages as soon as April and have a devastating impact on countless small exporters that rely on Ex-Im financing. NSBA urges the Senate to move quickly on reauthorizing and increasing the lending cap for Ex-Im Bank.
“Despite our disappointment over Ex-Im Bank, passage of the JOBS Act is a top priority for NSBA and will help many small businesses,” stated NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “We are hopeful for prompt House passage an expeditious enactment of this important legislation.”