Antiquated investing laws and tight credit have always restricted small businesses and startups but with the signing of the JOBS Act by President Obama, he considers this move to be a “potential game changer”.
In explaining the potential impact of the JOBS Act, also known as the Jumpstart Our Business Startups Act, Obama said, “This is a country that has always been on the cutting edge and the reason is because America has always had the most daring entrepreneurs in the world. When their ideas take root we get inventions that can change the way we live. And when their businesses take off, more people become employed because, overall, new businesses account for almost every new job that’s created in America.”
The objective of this Act, simply put, will help entrepreneurs find the finance for their ideas through ‘crowdfunding’ while mature companies won’t have to deal with so much red tape in the process of publicly selling stock.
Also, this Act is supported by both Republicans and Democrats who are of the opinion that making it easier for small businesses to access funds is vital to creating more jobs. In addition, an amendment has also been put into place so that ‘crowdfund’ investors are protected by law.
Without a doubt, the signing of this Act comes off as a big win for President Obama as the administration can take credit for moving this issue to completion. Finally, the signing of this bill will given the much-needed funding for startups and small business but will also strengthen ties between Silicon Valley and the Obama administration.