The JOBS Act has Officially Created the New Hot Field in Finance
President Obama signed off on the Jump-start Our Business Start-ups — JOBS — Act yesterday. In one stroke he made it easier for start-ups to raise capital and eased rules in the IPO market.
In a clear message, the President said during the signing ceremony in the White House Rose Garden, “I’ve always said that the true engine of job creation in this country is the private sector, not the government. Our job is to help our companies grow and hire.”
The President was lent support in the passage of the bill by House Minority Leader Eric Cantor, who also attended the ceremony. “This month, the House will vote on the Small Business Tax Cut, a 20 percent tax cut that will provide real relief to more than 22 million small businesses in our country,” Cantor said later.
Among several enabling moves designed to give small businesses a boost, companies will now find it easier to go public and raise capital in new processes such as crowd-funding (a new and controversial technique).
“For the first time ordinary Americans will be able to go online and invest in entrepreneurs that they believe in,” said the President. “Of course, to make sure Americans don’t get taken advantage of, the websites where folks will go to fund all these start-ups and small businesses will be subject to rigorous oversight.”
Only time will show us whether the new bill will create more benefits than costs. Let us know your thoughts in the comments below.
To contact the reporter on this story: Saul Griffith at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org