The SEC is blocking small business' access to funding and delaying job creation. Congress passed Title III of the Jumpstart Our Business Startups Act, commonly known as the JOBS Act, in 2012 and ordered the SEC to write rules for its implementation by January 2013. The SEC is more than two years late and businesses are suffering as a result.
The SEC has adopted long-awaited final rules which will allow companies to raise money in a private placement through general solicitation or advertising. While on its face this is a welcome development for companies seeking greater access to capital, the SEC has taken questionable steps that have the potential to eviscerate its potential benefits.
Unfortunately for Chair White, her predecessors' mishandling of the JOBS Act rulemaking to lift the ban on general solicitation in private offerings has left her with an uncomfortable choice between speeding implementation of that rule and ignoring her commitment to follow the economic analysis guidelines.