Congress Passes NSBA-Supported JOBS Act

On Tuesday, the U.S. House of Representatives approved the Senate-amended version of Jump-Start Our Business Start-ups Act (H.R. 3606 or “JOBS” Act) by a margin of 380-41, addressing one of NSBA’s top priority issues. The bill, which will ease securities regulations on small businesses making it much easier for them to raise capital through public capital markets, will now head to the President’s desk to be signed into law.

The bill originally passed the House along a wide bipartisan basis (390-23) and was then approved with amendments by the Senate last week, also on a bipartisan basis (73-26.) Prior to passage in the Senate, however, an amendment offered by Sen. Jeff Merkley (D-Ore.) and supported by Sens. Michael Bennet (D-Colo.), Mary Landrieu (D-La.) and Scott Brown (R-Mass.), among others, was adopted 64-35, . This so-called “crowdfunding” amendment (S.Amdt. 1884), will insert the Senate’s version of crowdfunding legislation into the bill, and among other things, require crowdfunding intermediaries to register with the Securities and Exchange Commission (SEC). The original House-passed version of H.R. 3606 did not contain such language.

This bill was also supported by the administration.

This pro-growth, NSBA-supported legislation will positively transform the ability of small businesses to raise capital and help alleviate the disproportionate burden of compliance placed on small firms.

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