The JOBS Act [Video]

By Crowdability, on Sunday, May 1, 2016

Back in 2012, in an effort to create jobs, Congress passed an important bill.

Officially, it was called the House of Representatives Bill H.R. 3606.

But nowadays, it’s known as The JOBS Act.

Simply put, the JOBS Act makes it easier for promising new businesses to raise capital from investors like you. Once these businesses have capital, they can start hiring.

This is a pretty historic change…

You see, for the past 83 years—since 1933 to be exact—only wealthy investors were allowed to invest in these private business ventures.

These wealthy investors are known as “accredited investors.” An accredited investor has a net worth of at least $1 million, or earns at least $200,000 per year.

But the JOBS Act will allow ALL investors to invest in early-stage, startup companies —regardless of their income or net worth.

As The Wall Street Journal wrote, “If all goes well, small companies can raise cash relatively cheaply, while investors get a stake in an innovative business with limited downside risk.”

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Tags: The jobs-act

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