Since 1980, small business startups have created over 40 million jobs and are responsible for 60% of new jobs in the United States. Their success is vital to the strength of the economy and the availability of jobs for all Americans.
On Tuesday, House Republicans unveiled the Jumpstart Our Business Startups Act (JOBS Act) on the East Steps of the Capitol.
In President Obama's State of the Union Address, he asked Congress to send him a bill that helps small businesses and entrepreneurs succeed. The JOBS Act does exactly that by removing barriers that are preventing small businesses from attracting investors and gaining access to capital.
Specifically, the legislation:
- eliminates Security and Exchange Commission restrictions that prevent entrepreneurs from raising capital from a large pool of investors;
- makes it easier for small businesses by increasing the threshold under which companies are exempt from SEC registration;
- raises the shareholder registration requirement threshold from 500 shareholders to 1,000 shareholders.
This bipartisan legislation removes these job-destroying regulations and will make it easier for small business startups to flourish while creating the jobs America needs.