The Jumpstart Our Business Start Up Act (JOBS Act) was signed by President Obama one year ago today and a leading organization that represents entrepreneurs and small business owners has expressed frustration regarding inaction it feels from the administration.
According to a statement issued by the Small Business & Entrepreneurship Council (SBE Council), the Securities and Exchange Commission’s response to the JOBS act has been subpar. They’ve failed to issue any rules helping small business improve capital access and have missed key deadlines set up under the JOBS Act.
SBE Council President & CEO Karen Kerrigan who was present for the bill signing and was part of the group that helped to spark the JOBS act legislation said: “The SEC is undermining this important capital formation initiative that was supported by an overwhelming majority in Congress. Entrepreneurs and high-potential businesses that can bring our nation back to robust levels of job creation and growth are being undermined. There really is no excuse for the SEC’s lack of progress.”
Of particular importance was the provision in the JOBS Act which makes debt and equity-based crowdfunding legal. Organizations such as the SBE Council realized that capital was and remains a critical issue for small business owners.
“While lending standards have eased some, according to the latest Fed senior loan officer survey, getting credit remains a difficult task for small businesses. For good measure, it’s worth noting that venture capital investment took a notable dip in 2012. Access to financing remains the biggest hurdle for most entrepreneurs, which makes crowdfunding a critical option in the marketplace,” noted SBE Council Chief Economist Raymond Keating.