BOWIE, Md. (April 6, 2012)—The Tire Industry Association lauded the passage and signing of the Jumpstart Our Business Startups Act as a way to stimulate financing for the nation's small businesses and entrepreneurs.
“This will kick start small business growth during our economic recovery,” said Roy Littlefield, TIA executive vice president, of the bill signed by President Obama April 5. “This bill is one advantage to an election year where both parties want to be perceived as supporting small businesses.”
Among other things, the JOBS Act removes the Securities and Exchange Commission ban on small businesses advertising to attract investors; raises from $5 million to $50 million the threshold at which small companies must register a sale of shares with the SEC; and allows startup businesses to engage in “crowdfunding,” or raising capital from a large group of investors via the Internet.
“The new law gives a greater opportunity for friends of entrepreneurs and the average person to capitalize on startup companies opening and not keep venture capital in the realm of the most wealthy,” TIA said.
The JOBS Act originally passed the House of Representatives March 8 by a 390-23 vote. The Senate passed the bill 76-23 on March 22, with amendments to safeguard against crowdfunding scams and for other purposes. The House then passed the amended bill March 27 by a 380-41 vote.