Amendment that Improves Investor Protections in JOBS Bill Now on its Way to White House to Become Law
The U.S. House of Representatives today passed on a bipartisan basis Colorado U.S. Senator Michael Bennet’s amendment to allow small businesses and start-ups to raise capital online and through social media while also protecting investors. The amendment passed as part of the Jumpstarting Our Business Startups (JOBS) Act, which passed with a bipartisan vote of 380-41. The Senate passed the bill with Bennet’s amendment last week.
“Crowdfunding is a common-sense way to harness potential investments in small businesses and start-ups in Colorado and across the country,” said Bennet. “I am glad to see bipartisan support in the House and the Senate for crowdfunding that helps to bring our securities laws into the 21st century while incorporating important investor protections. This bill will help drive innovation, promote job growth and support small businesses.”
The bipartisan amendment, which was cosponsored by Bennet and Senators Jeff Merkley (D-OR) and Scott Brown (R-MA), is based on the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure (“CROWDFUND”) Act. It would address the difficulties small businesses and start-ups face in securing capital, compared with larger companies, by allowing them to raise capital from individual investors online and through social media.
For more information on the crowdfunding amendment, click here.
The JOBS Act will now be sent to the President for his signature into law.