“JOBS Act” (or the “Jumpstart Our Business Startups Act”) was signed into law on April 5, 2012, in order to encourage the funding of small businesses in the U.S. by adjusting and enacting certain Federal Securities Laws and regulations.
Among other things, the JOBS Act:
- Created a new way for companies to use Equity Crowdfunding to issue Securities and raise funding;
- Increased the number of Stockholders that a company may have before being required to register with the SEC and become a Reporting Company;
- Lifted the ban on General Solicitation for certain types of Private Placements, so long as the company only sells to Accredited Investors (among other requirements); and
- Raised the Regulation A exemption limit from $5 million to $50 million in a 12-month period.