Loading ...The JOBS Act was signed into law last week in an effort to boost the economy. The law, which in long form is the Jumpstart Our Business Startups Act, is designed to help startups and small businesses raise capital and avoid cumbersome regulatory hurdles.
Michael McGeary of Hattery Labs worked directly with lawmakers on this bill and spoke with WebProNews about it. According to him, the law is a “great first step” in getting the economy back on track.
The “crowdfunding” element of the bill that will enable startups to solicit the general public for investment is getting the most attention. McGeary told us that this will help startups become companies faster and give them more growth potential. Additionally, he believes small businesses will benefit from the transparency and removal of forced IPOs that the law will bring.
Although there have been some concerns raised about the JOBS Act regarding fraud and failed IPOs, McGeary told us that, if these issues arise, Washington will step in very quickly to address them. However, due the bipartisan support the bill has received, he does not think these issues will become a problem.
The SEC is currently asking for feedback on the law as it begins the regulatory process.
How will the JOBS Act benefit you? Why or why not?
The good news is it got out of the Congress and signed by President Obama.
The real news, which will never be discussed in the political climate, is it will not have any meaning or value for at least 12 – 15 months.
It is unfortunate this will now get bogged down in the process of become effective and another year will pass before the well needed benefits become available.
The SEC alone has a 9 month evaluation period, with extensions thereafter.
The politicians all laud one another with this milestone, yet the businesses seeking the benefit will not see it for quite a while.