Market Data 
Markets
Replies to post #30613 on DD Support Board and Research Team
09/02/12 8:43 PM
Asher Enterprises: The JOBS Act
Curt Kramer and the team at Asher Enterprises were excited to learn about the recent passage of the JOBS Act. The JOBS Act, short for “Jumpstart Our Business Startups,” simplifies the process of obtaining funding for small businesses. The law relaxes several regulations for small businesses, which makes getting the money they need easier.
The JOBS Act is good news both for small business owners and for people looking for employment. In a nutshell, here’s what it does:
•Allows for crowd-funding. Thanks to the law, small business owners can now pitch a limited business plan to multiple fenders online. They can receive up to $1 million through crowd funding. If they do have documentation, the amount increases to $2 million.
•Expands Mini Public offerings. Before the JOBS Act passed, a company could only raise up to $5 million in a public offering to qualify for Regulation A exemption. With the Act, the amount has increased to $50 million. According to Asher Enterprises, this is a very good thing.
•Makes it easier to go public. The law created a class known as “Emerging Growth Companies.” While companies previously had two years to provide all paperwork, they now have up to 5 years.
History
President Obama signed the JOBS Act on April 5, 2012. The act has both the support of the Republican and Democratic parties and passed the House with a 390-23 vote. The JOBS Act came out of several proposals made by President Obama to promote small businesses and encourage people to create start-ups.
Asher Enterprises on the Benefits of the JOBS Act
A major benefit of the JOBS Act is that more capital for businesses means more businesses are likely to form. The Act also opens the door so that almost anyone can invest in a small business. Prior to the law, an investor needed to have a net worth of at least $1 million.
Another benefit of the law is that it allows small businesses to remain privately held companies for a longer period of time. Before, companies with 500 shareholders needed to make a public offering the number of shareholders has grown to 2,000 with the JOBS Act. As private companies, small businesses now also have the option of paying employees with stock. Employees who receive stock do not count towards the 2,000 shareholder limit.
Asher Enterprises in Great Neck is delighted that the JOBS Act passed with the support it received. A private investment company, Asher Enterprises is committed to funding small businesses. Find out how your small business can receive funding by contacting Curt Kramer and Asher Enterprises today!
AI
