Today was a big day for American small business and entrepreneurship. The House showed that they can in fact work together, even in an election year! The Jumpstart Our Business Startup Act was passed with overwhelming bipartisan support (390-23).
"The bills would make it easier for small companies to go public by providing them a temporary reprieve from Securities and Exchange Commission regulations; remove SEC restrictions preventing small businesses from using advertisements to solicit investors; and remove SEC restrictions on "crowdfunding" so entrepreneurs can raise investment capital from a large pool of small investors."
"They also raise from $5 million to $50 million the ceiling for shares a private company can sell as part of a public offering before having to register with the SEC, raise the SEC registration threshold from 500 to 1,000 shareholders and increase the number of shareholders permitted to invest in a community bank from 500 to 2,000."
Though this is a great win, we have been down this road before with similar bills that have passed the House with overwhelming support, only to be stalled in the Senate for months. Hopefully this time is different and Democrats and Republicans can put their differences aside and show the American people that they can come together and pass smart legislation that is good for the American people (even in an election year).