StartupReport and EarnMBA have teamed up to bring us their newest infographic on the topic of The Jumpstart Our Business Startups Act passed with support from both parties and signed by Debt Brother in April of 2012. Titled “The JOBS Act & Crowdfunding“, this picture really is worth a thousand words and worth your time to review if you are an entrepreneur or a participant in the ever popular crowd-funding industry.
One key point about The JOBS Act is the relief being given to “emerging growth companies” (EGC) which have as much as $1 billion in annual revenues and would be exempt from those pesky governance rules, reporting rules, and disclosure rules (a Jon Corzine junior if you will). The EGC’s will be able to operate for, at most, 5 years without any independent reviews of their internal controls, you know, the controls that keep the Enron’s, Adelphia’s and Worldcom’s of the US in check.
This Act is one of the most significant pieces of legislation to hit the financial services industry since the Securities and Exchange Act from 1933 (which allowed the creation of the shell regulation entity known as the SEC). If some of this is new to you, may I suggest you read The JOBS Act: Crowdfunding For Small Business to familiarize yourself with how you can get in on this new form of small business funding.