Pro-crowdfunding JOBS Act to be signed in to law on Thursday

Pt 849

Pro-crowdfunding JOBS Act to be signed in to law on Thursday.

A piece of legislation designed to make crowdfunding a legal option for startups will be passed into law as President Barack Obama plans to sign the JOBS Act Thursday, VentureBeat has confirmed.

The Jumpstart Our Business Startups (JOBS) Act has already successfully made its way throughthe U.S. Senate and the House of Representatives, with some modifications, and will allow startups raising $1 million or less to let regular Joes and Janes (read: non-accredited investors) purchase a limited amount of equity in their nascent businesses via approved portals.

The legislation also eliminates the 500-sharehoulder rule, meaning that startups can wait longer before needing to publicly report financial data to the SEC and hold off on forced public offerings.
“On Thursday, the President will sign the Jobs Act,” press deputy secretary Josh Earnest said in a press gaggle on Friday.


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