{"id":5549,"date":"2013-12-20T00:00:00","date_gmt":"2013-12-20T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/12\/the_jobs_act_sec_proposes_rais_1"},"modified":"2022-03-09T16:20:28","modified_gmt":"2022-03-09T22:20:28","slug":"the-jobs-act-sec-proposes-rais-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/","title":{"rendered":"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits"},"content":{"rendered":"\n<p>The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their proposal, firms could raise up to $50 million, instead of just $5 million, while giving investors less disclosures than what public companies are obligated to provide. The measure, which has just been issued for public comment, is the Jumpstart Our Business Startups Act\u2019s last big requirement. <\/p>\n<p>The JOBS Act was established to assist small business in going public and raising capital. Currently, it lets the SEC preempt states from overseeing Regulation A offerings if only \u201cqualified\u201d buyers are allowed to purchase the the deals or if they are offered via a stock exchange. However, the SEC has to approve the offerings and companies employing the exemption have to get approval by regulators in each state where shares were sold. It is this review by the states of Regulation A deals that reportedly have been a biggest hassle because each state has its own standards for whether to approve offers. <\/p>\n<p>It was Congress and the 2012 Jumpstart Our Business Startups Act that mandated revisions to the Commission\u2019s Regulation A so that investors will want to get behind smaller companies. According to a Government Accountability Office report, in 2011, the number of businesses trying to raise money under the current rule dropped to 19\u2014way down from the 116 businesses that did in 1997. Some said that the requirements were too strict for how much money they were allowed to raise.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/\"  title=\"Continue Reading The JOBS Act: SEC Proposes Raising Small Stock Deal Limits\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their proposal, firms could raise up to $50 million, instead of just $5 million, while giving investors less disclosures than what public companies are obligated to provide. The measure, which has [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4026],"tags":[],"class_list":["post-5549","post","type-post","status-publish","format-standard","hentry","category-jobs-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The JOBS Act: SEC Proposes Raising Small Stock Deal Limits &#8212; Investor Lawyers Blog &#8212; December 20, 2013<\/title>\n<meta name=\"description\" content=\"The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their &#8212; December 20, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits &#8212; Investor Lawyers Blog &#8212; December 20, 2013\" \/>\n<meta name=\"twitter:description\" content=\"The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their &#8212; December 20, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits &#8212; Investor Lawyers Blog &#8212; December 20, 2013","description":"The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their &#8212; December 20, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/","twitter_card":"summary_large_image","twitter_title":"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits &#8212; Investor Lawyers Blog &#8212; December 20, 2013","twitter_description":"The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. Under their &#8212; December 20, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits","datePublished":"2013-12-20T06:00:00+00:00","dateModified":"2022-03-09T22:20:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/"},"wordCount":561,"articleSection":["JOBS Act"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/","url":"https:\/\/www.investorlawyers.com\/blog\/the-jobs-act-sec-proposes-rais-1\/","name":"The JOBS Act: SEC Proposes Raising Small Stock Deal Limits &#8212; Investor Lawyers Blog &#8212; December 20, 2013","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2013-12-20T06:00:00+00:00","dateModified":"2022-03-09T22:20:28+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The US Securities and Exchange Commission wants to up by 10 times how much money companies can raise via a simplified public offering. 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