Cantor calls on Reid to quickly take up JOBS Act

The Jumpstart Our Business Startups (JOBS) Act, H.R. 3606, is broadly aimed at making capital formation easier for new companies. Among other things, it creates a new class of companies that would enjoy relaxed Securities and Exchange Commission (SEC) rules, allowing small companies to go public sooner.

{mosads}The House disposed of several amendments on Wednesday that tweak the definition of these “emerging growth companies.”

The bill also ends an SEC ban on small company advertisements to solicit capital, allows “crowd-funding,” increases the offering threshold from $5 million to $50 million before SEC registration is required, raises the shareholder registration requirement from 500 to 1,000 shareholders and increases the number of shareholders allowed to invest in community banks from 500 to 2,000.

The House began considering the last seven amendments to the bill shortly after 10 a.m., and was expected to complete work on the bill by early afternoon.