SEC Misses Two Key JOBS Act DeadlinesJanuary 16, 2013
The JOBS Act, signed into law April 5, 2012, contained a number of important provisions designed to improve small businesses’ access to capital. Two of the most important were provision allowing small businesses to advertise seeking accredited investors in their company and allowing small businesses to crowdfund (to raise small amounts of money from many ordinary investors through a web portal). Because of Securities and Exchange Commission (SEC) inaction and its failure to comply with the law’s requirements, both of these new means of raising capital remain unavailable to small business.
The SEC was required by the JOBS Act to have issued a final rule by July 5 implementing the provisions allowing small businesses to advertise seeking accredited investors in their company. On August 29, the Commission agreed to a proposed rule. The proposed rule simply reiterated the JOBS Act language. Because the SEC has yet to issue a final rule, small businesses are still unable to take advantage of the JOBS Act.
The JOBS Act also required the SEC to have issued final rules for crowdfunding by December 31, 2012. The SEC has not done so. Thus, crowdfunding also remains unavailable to small firms.
NSBA fought hard for the JOBS Act and has worked hard for reasonable JOBS Act regulations.
To read NSBA’s testimony on JOBS Act implementation, click here.
To read our comments to the SEC, please click the links below.
To submit comments to the SEC urging it to adopt reasonable rules and to adopt those rules quickly so small firms can take advantage of the JOBS Act, click here.