Media Center

On April 5, the President signed the Jumpstart Our Business Startups Act (H.R. 3606) into law (P.L. 112-106).  The "JOBS Act" will allow small businesses and start-up enterprises to raise capital from investors more efficiently. Congressman Scott voted for this bi-partisan bill and similar bills which were first considered in one of his committees - the Financial Services Committee.

The JOBS Act will help growing businesses access financing in several ways:

• Allowing Small Businesses to Harness “Crowdfunding”: startups and small businesses will be allowed to raise up to $1 million annually from many small-dollar investors through web-based platforms. All crowdfunding must occur through platforms that are registered with a self-regulatory organization and regulated by the SEC.

• Expanding “Mini Public Offerings”:  The JOBS Act will raise the "regulation A" exemption threshold to $50 million from $5 million for for smaller innovative companies to raise capital consistent with investor protections.

• Creating an “IPO On-Ramp”: The JOBS Act makes it easier for young, high-growth firms to go public by providing an incubator period for a new class of “Emerging Growth Companies.” During this period, qualifying companies will have time to reach compliance with certain public company disclosure and auditing requirements after their initial public offering (IPO). Firms currently have up to two years after the IPO to comply with certain Sarbanes-Oxley auditing requirements. The JOBS Act extends that period to a maximum of five years. 

Additionally, the JOBS Act changes some existing limitations on how companies can solicit private investments from “accredited investors.