3 Things You Should Know About Small Business: March 28
NEW YORK (MainStreet) - What's happening in small business today?
1. Restrictions are being eased to make it easier to get capital. The House of Representatives on Tuesday passed the final measure needed to get the Jumpstart Our Business Startups Act (JOBS Act) onto President Barack Obama's desk to be signed into law. The JOBS Act makes it easier for companies to attract investors and comply with securities laws by easing Securities and Exchange Commission restrictions on soliciting new investors. It also permits so-called "crowdfunding" to allow entrepreneurs to raise equity from larger pools of smaller investors, according to the Washington Post.
The measure was first passed by the House earlier in March. The Senate passed its version of the bill last week, which included additional safeguards on crowdfunding.
According to Washington Post, private companies would be able to sell up to $50 million in shares as part of an IPO before having to register with the SEC under the new law. However, critics say bypassing critical filings opens the door to fraud and investor abuse.
In a separate measure, the House is expected to vote next month on a bill that would give growing small businesses temporary 20% tax cuts. A Senate proposal introduced this week grants $26 billion in tax credits to smaller companies that either hire new workers or increase the size of their payroll, the article states.