PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Small Business Advocate Cheers SEC Approval of Key JOBS Act Crowdfunding Measure

By at 30 October, 2015, 10:45 am

Crowd Funding.

FOR IMMEDIATE RELEASE

Capital Access for Entrepreneurs and Start Ups Gets a Boost

Washington, D.C. – Today, the Securities and Exchange Commission (SEC) voted to finalize the rules of the remaining provision of the Jumpstart Our Business Startups Act (JOBS Act), a measure signed by President Barack Obama more than three and one-half years ago. Title III of the JOBS Act allows non-accredited investors to participate in investment crowdfunding. According to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan, the measure unleashes a vast pool of potential investment capital that can benefit entrepreneurs and small businesses.

“We are pleased that complete equity crowdfunding can now move forward. Significant gaps in capital access persist, and Title III is an important tool that will bring more investment capital to the table and open opportunities for business owners and entrepreneurs who will never be able to penetrate established investor networks. Today is an important milestone for both entrepreneurs and a new investment class,” said Kerrigan.

Kerrigan noted Title III’s importance for women and minority entrepreneurs: “This next phase of investment crowdfunding blows the market wide open. For women and minority entrepreneurs the potential is quite significant. Online platforms will continue to grow, diversify, and serve niche markets. Investors will be in search of quality businesses to invest in – regardless of gender, race or location.”

Kerrigan added that more small business owners and entrepreneurs will become investors themselves. “This will be tremendously powerful for the ecosystem,” she said.

There will be a 90-day comment period on the rules, which will go into effect 60 days after the final regulations are published in the Federal Register.

SBE Council is a nonprofit, nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For nearly 25 years, SBE Council has worked to support policies and initiatives that strengthen the environment for startups and small business growth. Please visit: www.sbecouncil.org. Follow: @SBECouncil.

CONTACT: Karen Kerrigan
kkerrigan@sbecouncil.org
703-242-5840

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