The JOBS Act, which stands for Jumpstart Our Business Startups Act, has moved forward in Congress.
If the bill is passed a new classification of businesses will be made, “emerging growth companies.” These businesses will be able to raise money via crowdfunding, in a way similar to how non-profits raise money. There will be a million dollar cap on how much can be raised through crowdfunding.
“The JOBS Act gives small businesses the tools they need to expand and create jobs,” says Representative McHenry of North Carolina.
Two amendments still need to be voted on before the JOBS Act can be passed as a law.
Many small businesses will benefit from the JOBS act if it is passed. Stay tuned to BIZ TV for more information on legislation affecting small businesses and other small business news.