JOBS Act, Aiding Start Up Investment, Flies Through Senate

The “Jump Start Our Business Start Ups” or JOBS Act, flew through the senate Thursday. The bill will allow fundamental changes in how small companies are able to raise money. The version of the bill that passed through the senate today has some changes from the bill that recently passed through the house, that means this bill will have to be reconciled with the original. Either way this is a big victory for start-ups, venture capitalists and angel funds.

Under the provisions of this ball, smaller, emerging companies can raise up to $1 million dollars in a period of up to five years to private investors without making the investors subject to disclosure regulations that normally affect publicly traded companies.

More after the break
President Obama supported this bill. Senator Pat Toomey (R-PA) said “This might be one of the most constructive things we do this year,” Toomey went on to say “This is going to create more jobs and more growth in the economy.”  The Senate approved the bill 73-26.

All 26 negative votes were from democrats.

The bill also allows for crowd-funding. Crowd Funding allows companies to solicit equity investments through the internet to raise up to $1 million dollars annually without registering their shares for public trading with the SEC. So yes a bit like kickstarter.

source: Fox News

 

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