Jumpstart Our Business Startups (JOBS) Act

The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country’s securities regulations. It was signed into law on April 5, 2012. Title III, also known as the Crowd Fund Act, has drawn the most public attention because it creates a way for companies to use crowdfunding to issue securities, something that was not previously permitted. It also lifted the ban on “general solicitation” and advertising of some kinds of private placements of securities such as real estate LLCs. This provision allows broader marketing of placements, as long as companies only sell to accredited investors (based on income, net worth or written confirmation from a specified third party).

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