NSBA Meets with SEC on JOBS Act ImplementationJuly 10, 2012
NSBA today met with the Securities and Exchange Commission (SEC) in support of the JOBS Act signed into law by the President in April. The JOBS Act will facilitate the ability of small business owners to raise debt and equity capital by:
- Creating new crowdfunding web portals;
- Allowing small firms to advertise seeking accredited investors; and
- Reducing the cost of going and staying a public company for the first five years.
The SEC must adopt a number of rules to implement the JOBS Act. Moreover, clarification or amplification by the SEC would be highly desirable in a number of cases where adopting a regulatory regime is not specifically mandated by the Act but the statute is either very general or ambiguous.
NSBA, in both written comments and during its meeting today, July 11, urged SEC to guard against regulations that will undermine the purpose of the Act by imposing such complexity, opaqueness and regulatory risk that small firms or funding portals must either incur exorbitant legal and accounting fees or fail to take advantage of the new means of raising capital offered by the Act. The regulatory framework should be straight-forward and streamlined, imposing the minimum necessary cost and regulatory risk on small firms seeking to raise capital.
To read the NSBA comments to the SEC, click here.
Additionally, NSBA is urging small-business owners to register their own comments of support for the JOBS Act with the SEC. Please click here for more details.