The JOBS Act of 2012 has been sent to President Obama for signature. If it becomes law, the Securities and Exchange Commission will have 270 days to develop regulations to implement the Act. It appears that the law would then become effective early in 2013. Some provisions of the Act are designed to enhance access to capital, particularly for smaller companies.
- So-called "crowd-funding" would allow the public sale of small amounts of stock, up to $1 million annually, without being required to register with the Securities and Exchange Commission.
- Companies with annual revenues up to $1 billion could ignore, for five years some regulations designed to provide investor protection after the end of the dot-com bubble and the collapse of Enron.
Some protections for investors were added by the Senate before sending the bill on to the President, including:
- Companies seeking to raise $100,000 or less would need to provide tax returns and a financial statement certified by a company principal.
- Companies seeking to raise up to $500,000 would need to provide financial statements that are reviewed by an independent public accountant.
- Persons seeking to help companies raise money through crowd-funding would need to register with the SEC.