On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) into law. This law, which eased many U.S. securities regulations, was created to help encourage funding of small businesses. Five years later, on April 5, 2017, the SEC announced that it has adopted amendmentsto increase the amount of money companies can raise through crowdfunding. Taking inflation into consideration, it also adjusted a threshold used to determine eligibility for benefits offered to “emerging growth companies” (EGCs) under the JOBS Act. The Commission updated these thresholds as part of the requirement to make inflation adjustments to certain JOBS Act rules at least once every five years.“Regular updates to the JOBS Act, as prescribed by Congress, ensure that the entrepreneurs and investors who benefit from crowdfunding will continue to do so,” said SEC Acting Chairman Michael S. Piwowar. “Under these amendments, the JOBS Act can continue to create jobs and investment opportunities for the general public.”The new thresholds will become effective upon their publication in the Federal Register.To learn more about the JOBS Act and crowdfunding, as well as SEC regulations that you must take into consideration, contact Jacko Law Group, PC at (619) 298-2880, or email info@jackolg.com. Thank you.
