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Summary of JOBS Bill and Update

I got a few emails asking if I can congeal the five part blog summary of the "JOBS" bill passed by the US House into one. Below is the meat of the bill without comment. As an update, it appears the bill is facing growing political opposition from the left, although President Obama supports...

Lifting the Ban on General Solicitation and General Advertising

On Thursday afternoon, the US Senate passed the Jumpstart Our Business Startups Act, a bill designed to make it easier for small companies to raise capital. The centerpiece of the legislation is the crowdfunding provision. However, the Senate passed an amendment to that section of the legislation...

The JOBS Act: Creating Jobs, or a Replay?

As the 1990s drew to a close Congress passed legislation signed by the President ensuring the deregulation of the derivatives markets. At the time CFTC Chairwoman Brooksley Born was one of the sole voices of dissent. Less than ten years that dissent proved prophetic as the most severe market crisis...

Senate Passes Modified JOBS Act - Regulatory Reform for Small and Emerging Growth Companies Speeds Closer to Fruition

On March 22, 2012, the Senate passed the Jumpstart Our Business Startups (JOBS) Act by a vote of 73-26. The House of Representatives passed the JOBS Act on March 8, 2012 by a vote of 390-23. The Senate bypassed its typical committee process to rush the bill to a floor vote. Legislators in both parties...

Final Senate Version of Crowdfunding

As we know, the Senate changed the version of the Jumpstart our Business Startups (JOBS) Act in only one way, they added an amendment, drafted by Sen. Merkley (but also supported by Sens. Bennet and Brown), which added more investor protections to the "crowdfunding" section of the bill...

Next Steps for the JOBS Act

The Jumpstart Our Business Startups Act, as amended by the Senate, was voted on by the House of Representatives yesterday and passed 380 to 41. That makes it a very bi-partisan bill, even though a ll 41 "Nays" were Democrats . If I remember my Schoolhouse Rocks song correctly, it's...

In Spite of What You May Have Heard, the Senate Just Effectively Killed Crowdfunding

This last week, the Senate passed the " JOBS Act ," leaving it one step away from final passage by Congress and Signature by President Obama. The JOBS Act contains a number of provisions which are aimed at reducing the securities compliance burdens of small companies and startups. One of...

Steps to Determine if an Investor is Accredited

Private funds will be able to advertise and solicit for investor, provided all of the investors are " accredited investors ." The Jumpstart Our Business Startups Act will dramatically change the way capital raising for private funds operates. The drawback is the loss of 35 non-accredited...

The Impact of the JOBS Act on D&O Liability

On March 27, 2012, the U.S. House of Representatives passed the Jumpstart Our Business Startups Act (of the JOBS Act as it is more popularly known). President Obama is expected to sign the Act shortly. The Act is intended to facilitate capital-raising by reducing regulatory burdens. The Act also...

SEC Small Business Forum Gets Some Stuff in JOBS Act – Part I

Very recently the SEC published its final report on the SEC Government-Business Forum on Small Business Capital Formation from the November 17, 2011 event, which I attended in DC. Participants breathlessly await this report each year to see what recommendations make the hot list for the upcoming...

SEC Small Business Forum Gets Some Stuff in JOBS Act – Part II

In this part II, let's hit some key recommendations from the SEC Small Business Forum that did not make it into the JOBS Act and that advocates are still hoping will get some attention: Allowing "finders" in M&A and private offerings to have a simplified registration and...

The Practical Implications of the "JOBS" Act for EB-5 Practice

On March 22, 2012 Washington, DC, "Jumpstart Our Business Startups" (JOBS) Act was passed by the Senate, following its passage on March 8, 2012 by the House of Representatives. The purpose of the said legislation is to ease the regulatory burden on small companies for raising capital...

Dick Phillips, Alan Berkeley and Stan Keller Discuss the JOBS Act.

On this edition, Dick Phillips and Alan Berkeley of K&L Gates and Stan Keller of Edwards Wildman discuss the JOBS Act (Jumpstart Our Business Startups Act), which was signed into law April 5 by President Obama. They provide an overview of the legislation and explore some of the controversies of the...

Is China's Love Affair with US Capital Markets Over?

Not two years ago, reverse mergers with little known Chinese firms was all the rage. The reverse merger was a cheap way to get a private Chinese (or any other) company public. Chinese firms took a liking to this backdoor to the US capital markets more than anyone else. So much so that it caused...

New York’s Carolyn Maloney More Focused On Politics Than Investors

With Democrats like Representative Carolyn Maloney of New York, who needs the Republicans? When special interests pursue self-interested legislation - or seek to block legislation that affects their interests - Maloney waves the jobs and economic growth flag for campaign contributors rather than...

You Cannot 'Crowdfund' a Fund (in Case You Were Wondering)

Crowdfunding may provide an interesting way for some companies to raise capital. It's definitely getting a lot of the hype since passage of the Jumpstart Our Business Startups ( JOBS ) Act earlier this month. I've read articles talking about how crowdfunding is going to disrupt funding for...

Crowdfunding Under the JOBS Act: The Bottom Line Impact on Private Equity Issuers and Market Intermediaries

by Jonathan B. Wilson and Dianne L. Trenholm Excerpt: On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (the "JOBS Act"), H.R. 3606, into law calling it "a potential game-changer" for startup companies. President Obama signed the JOBS Act just...

Thoughts for the SEC on JOBS Act Part I-General Solicitation

Our firm is working on a comment letter to submit to the SEC, but in the meantime I thought I would deliver some thoughts that are purely my own as the SEC pursues the massive rulemaking job put upon it by the Jumpstart our Business Startups (JOBS) Act recently signed into law. The law directs...

Emerging Growth Companies: You Have Been Warned

In order to try to boost the number of companies going public, the recently enacted JOBS act provides for certain procedural and reporting advantages for "Emerging Growth Companies," which are defined in the Act as companies within five years of their IPO and with revenues less than $1 ...

A Masterstroke of Some Kind: Crowdfunding and the JOBS Act

"Everyone agrees the title was a work of pure genius," says Dick Phillips of K&L Gates in a recent podcast , referring to the Jumpstart Our Business Startups (JOBS) Act. "It's impossible to vote against in an election year." When a law is so well named, it's important...