JOBS Act crowdfunding proposed rules

What The New SEC JOBS Act Crowdfunding Rules Really Mean

JOBS Act

Kendall Almerico – Crowdfunding Expert and CEO of Click Start LLC

Nearly 10 months after they were supposed to do so, the Securities and Exchange Commission finally released their proposed crowdfunding rules under the JOBS Act. These long-awaited rules for equity crowdfunding are supposed to Wopen up the purchase of stock for start-up companies to everyday people and smaller investors through online crowdfunding web sites. Unfortunately, the SEC’s proposed rules, which now are in a 90-day holding period while public comments are solicited, appear to make the process of raising funds for start-up businesses more complicated than the JOBS Act intended.

The SEC released 585 pages of comments and rules that are filled with new, additional requirements for equity crowdfunding and open investing by unaccredited individuals. This enormous set of comments and rules can be found on the SEC’s website.

News reports, blogs, and crowdfunding enthusiasts across the country were excited about the announcement of the rules hoping that equity crowdfunding had finally arrived. Unfortunately, this is far from the case. Those who have actually read the SEC’s proposed rules are saying that they are a far cry from what these regulations are supposed to be. Even Sen.FileStack-ftu John Thune (R-SD) and Pat Toomey (R-PA) wrote a letter to SEC Chairman Mary Jo White with their concerns that the proposed rules “go beyond Congress’s clear mandate … and would impose unnecessary and burdensome requirements that will … undo the progress made under (the JOBS Act).” The Senators are right. These overbearing measures are against the interests of the small businesses and investors that the JOBS Act was designed to benefit

Reviewing the SEC rules, there appear to be many measures that are going to make the process of equity crowdfunding very difficult for potential business start-ups. From governmental reporting requirements and the need for extensive financial documentation to background checks and other expensive undertakings, the hope that the JOBS Act would open the doors to a flood of new financing for small businesses appears, for now, to be again bogged down in what will become a jungle of governmental red tape. This is exactly the scenario that Congress, acting in a rare, non-partisan fashion, had attempted to avoid when they passed the JOBS Act in 2012.

More analysis

by Aeurelius

No. 6 Spending $15 billion on a program that would hire construction workers to help rehabilitate and refurbishing hundreds of thousands of foreclosed homes and businesses
This is TEMPORARY JOBS!!! and why in the hell is tax payers footing the bill for foreclosed homes? Are you a retarded or what?
No. 7 Creating the National Infrastructure Bank (capitalized with $10 billion), originally proposed in 2007, to help fund infrastructure via private and public capita
This does jack shit to create jobs. It is a slush fund.
No. 8 Creating a nationwide, interoperable wireless network for public safety, while expanding accessibility to high-speed wireless services
Private sector does internet better

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