Jumpstart Act

The Jumpstart Our Business Startups (JOBS) Act, also known as Bill 117 hr 7374, was introduced in the US Congress with the goal of promoting small business growth and job creation. The act aimed to make it easier for small businesses to raise capital by easing regulations and requirements for initial public offerings (IPOs) and crowdfunding.

One of the key provisions of the JOBS Act was the creation of a new category of companies called "emerging growth companies" (EGCs). These companies were given certain exemptions from regulatory requirements, such as reduced disclosure requirements and the ability to confidentially submit draft registration statements to the Securities and Exchange Commission (SEC).

The act also allowed for crowdfunding, which enabled small businesses to raise capital from a large number of individual investors through online platforms. This provided a new avenue for small businesses to access funding without having to go through traditional financial institutions. Overall, the JOBS Act was seen as a positive step towards supporting small businesses and encouraging entrepreneurship in the United States. It aimed to stimulate economic growth by making it easier for small businesses to raise capital and create jobs.