The Jobs Act is intended to make it easier for smaller companies to raise public and private capital in the U.S. financial markets. Among the most significant provisions in the Jobs Act are the repeal of the prohibition on general solicitation for certain private offerings, the creation of a new category of issuers called “emerging growth companies” that would be exempt from, or subjected to reduced, regulatory requirements for a limited period of time, and the legalization of ‘crowdfunding’ through registered funding portals. The Jobs Act also includes other measures intended to make it easier for private issuers to raise capital and liberalizes provisions requiring private companies to become SEC public reporting companies based on the number of shareholders. Several provisions of the Jobs Act become effective immediately, while others will be implemented through future SEC rule making.
We invite our readers to read the attached GT Alert — The Jobs Act: Improving Access to Capital Markets for Emerging Growth Companies prepared by Stephen T. Adams and Robert E. Puopolo in our Boston office.