The Jumpstart Our Business Startups Act, or JOBS Act, was signed into law by President Barack Obama on April 5, 2012. The JOBS Act makes changes to the securities laws applicable to certain public issuers, as well as for private placements, and introduces new classes of exempt securities and transactions, including the controversial crowdfunding exemption. The most comprehensive reforms introduced by the JOBS Act include:
- Relaxation of initial public offering requirements for emerging growth companies
- Increasing the 499-shareholder limit for private companies seeking to remain private
- Easing restrictions on general solicitation and general advertising
- A new private placement exemption called crowdfunding
- An expanded small public offering exemption
Nixon Peabody’s Government Relations team, including retired U.S. Representative Thomas Reynolds and Counsel Doug Dziak, worked with congressional proponents of the legislation and key committee members to move this bill through the legislative process.
Since the law was passed, the U.S. Securities and Exchange Commission (SEC) has issued further guidance on the JOBS Act, particularly pertaining to how it affects emerging growth companies.
The JOBS Act: The complete text of the JOBS Act.
SEC's JOBS Act page: SEC guidance about the JOBS Act, includes updates, instructions, and frequently asked questions (FAQs).
SEC Public Comment Submissions: View and submit comments to the SEC, which is inviting public input on certain requirements of the JOBS Act even before the official comment period begins.