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November 4, 2012

JOBS Act opens up crowdfunding

NORMAN — The bipartisan Jumpstart Our Business Startups Act or JOBS Act signed into law by President Barack Obama on April 5 is intended to encourage funding of small businesses by easing some securities regulations.

The JOBS Act includes legislation which affects how small start-up businesses raise capital. One section of the law removed restrictions imposed by the Securities and Exchange Commission on crowdfunding. Entrepreneurs can raise up to $1 million from investors before having to register with the SEC. It also allows small businesses to use advertisements to solicit investors which was previously disallowed.

Source: U.S. Department of Commerce

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