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[Infographic] Jumpstart Our Business Startup Act

Mihir Gandhi

ABOUT THE JOBS ACT

The JOBS Act was created with small businesses in mind, giving them greater opportunities to raise capital under new regulations that allow general solicitation and advertising. The U.S. Securities and Exchange Commission (SEC) implemented final rules regarding general solicitation and advertising as required by Title II of the JOBS Act. Those rules went into effect on September 23, 2013 and allowed private startups and businesses to publicly solicit for investments -while still qualifying them as private placements. While the ban on general solicitation and advertising was lifted, investors still need to be verified as accredited in order to purchase securities.