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Jumpstart our Business Startups Act
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The Jumpstart Our Business Startups Act was a federal law passed in 2012. The act exempted companies with gross revenues under $1 billion in the previous fiscal year from certain reporting and regulatory requirements of the Sarbanes-Oxley Act. The act was signed into law by President Barack Obama (D) on April 5, 2012.[1]
Legislative history
On December 8, 2011, the first version of the Jumpstart Our Business Startups (JOBS) Act was introduced in the United States House of Representatives by Representative Stephen Lee Fincher (R) as the Reopening American Capital Markets to Emerging Growth Companies Act. On March 8, 2012, House Majority Leader Eric Cantor (R) introduced a revised version of the JOBS Act that combined four House bills. The Reopening American Capital Markets to Emerging Growth Companies Act was included in Title I of the revised act. The remainder of the act contained three bills that had previously passed the House: HR 1070 (Small Company Capital Formation Act of 2011) , HR 2930 (Entrepreneur Access to Capital Act) , and HR 2940 (Access to Capital for Job Creators Act). The act was further revised and passed the House on March 8, 2012. After passing the House, the act was sent to the United States Senate. The Senate amended the bill to include the CROWDFUND Act as Title III of the act. On March 27, 2012, the amended act was passed by the House in a vote of 380-41 and by voice vote in the Senate. The bill was signed into law by President Barack Obama (D) on April 5, 2012.[2][3][4][5]
Provisions
The JOBS Act exempted companies with less than $1 billion in gross revenue in their previous fiscal year from the auditing and disclosure requirements of Sarbanes–Oxley Act. These companies were defined by the law as emerging growth companies. The act also included a crowdfunding exemption provision allowing the public to invest in startups by buying securities from the companies. The total investment permitted per investor was limited to $2,000 or 5 percent of income (whichever was greater) for people earning up to $100,000, and $10,000 or 10 percent of income (whichever was less) for people earning $100,000 or more. This exemption allowed startup companies to register public offerings on certain internet funding websites registered with the government. The act increased the number of shareholders a company must have before being required to register with the Securities and Exchange Commission to 500 unaccredited investors, or 2,000 persons total.[6]
See also
External links
Footnotes
- ↑ Securities and Exchange Commission, "Jumpstart Our Business Startups (JOBS) Act," accessed March 28, 2017
- ↑ Securities and Exchange Commission, "The Reopening American Capital Markets to Emerging Growth Companies Act of 2011, S. 1933 (2011)", accessed March 15, 2017
- ↑ “United States Congress”, “H.R.3606 - Jumpstart Our Business Startups”," accessed November 17, 2016
- ↑ Jumpstart Our Business Startups Act, H.R. 3606-2 (2012)
- ↑ “Congress.Gov”, “S.2190 - CROWDFUND Act”," accessed November 17, 2016
- ↑ “FINRA”, “Crowdfunding and the JOBS Act: What Investors Should Know”," accessed November 17, 2016
