President Obama on Thursday signed into law the Jump-Start Our Business Start-ups (JOBS) Act, which will significantly improve small businesses’ ability to raise capital and help companies generate sustainable economic growth and jobs. The National Small Business Association (NSBA), which is SBAM’s national affiliate, was a leading proponent of the JOBS Act, and, as such, was invited to attend the bill signing in the White House Rose Garden.
NSBA Chair Chris Holman (a past chair of SBAM) was in the audience for the ceremony (pictured left.) “America’s small businesses have struggled to secure financing throughout the economic downturn which has greatly hindered our ability to grow and create jobs,” stated Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “The signing of this bill comes not a minute too soon.”
According to NSBA data over the past nearly 20 years, there has been a direct correlation between job growth and small-business owners’ ability to garner financing—when small businesses have adequate financing, they create jobs.
Today’s signing of the JOBS Act will enact: a crowdfunding exemption allowing small companies to raise up to $1 million in a 12-month period which includes a preemption of 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.
“The bipartisan passage of the JOBS Act and today’s signing ceremony exemplify how things in Washington can, and should work,” stated NSBA President and CEO Todd McCracken. “When pragmatism and sound policy take precedence over politics, good things can happen.”