JOBS Act Set to Sail Through
While the Senate approved the JOBS Act late last week, it attached an amendment that requires House approval before the legislation makes it to President Obama to be signed into law. However, the amendment—which increases investor protections in crowdfunding—is not enough to derail the hugely popular legislation which is expected to sail through the House easily this week.
The Jumpstart Our Business Startups Act—a package of six bills that would make it easier to launch and grow startups—originated in the House and is supported by the Administration.
The amendment added last week by the Senate requires startups receiving crowdfunding to provide financial statements to investors, limits the total a company can raise via the method to $1 million and requires crowdfunding sites to register with the SEC. House Majority Leader Eric Cantor promised a quick vote.
While the crowdfunding measures attract all the attention, the Act also provides for limits on Sarbanes-Oxley requirements for “Emerging Growth Companies”—reducing the cost of going public for startups and small firms.