President Barack Obama Thursday signed into law the bipartisan JOBS Act, short for Jumpstart Our Business Startups, which is designed to create jobs over time by easing access to capital for businesses.
Citing the success of American inventors and entrepreneurs such as Graham Bell and Henry Ford, Obama predicted the act will be a “game changer” for the nation’s entrepreneurs. “And we believe that anyone with a solid plan and a willingness to work hard can turn even the most improbable idea into a successful business,” Obama said. “This is a country that’s always been on the cutting edge. And the reason is that America has always had the most daring entrepreneurs in the world.”
Missing during the economic downturn was the capital small business owners needed to grow their companies and create jobs, he acknowledged. Obama said the law will make it easier for established companies to go public, while allowing startups to raise up to $1 million from individuals online through crowdfunding.
The act provides the Securities and Exchange Commission with a 270-day grace period to devise specific regulations for crowdfunding, but small businesses can prepare for the new opportunity by getting their business plans and pitches ready, a Forbes story said.