Kerrigan’s Jobs Act 3.0
Karen Kerrigan, president, and CEO of the Small Business & Entrepreneurship Council started off by talking about how the JOBS Act 3.0 will affect millennial entrepreneurs. It was carried in the House of Representatives by a vote of 406 to 4 in a stunning act of bipartisan consensus.
The act itself would “improve regulatory compliance and streamline rules and regulations to improve capital access for small businesses … access to capital is a critical part of the ecosystem to strengthen small business growth and it is an enduring challenge,” she said. Right now the bill has passed in the House and is trying to be passed in the Senate and then approved by the president.
How would this process actually work?
One of the things that the Jobs Act 3.0 addresses is the confusion surrounding pitch events. The confusion was about whether, if people pitched accredited investors at these events and there were other investors that were not accredited, these individuals were “running afoul of securities laws … what this law does is clarifies rules around these pitch events… it clarifies the rules so that individuals do not run afoul of these laws. But it does a lot of other things, too,” Kerrigan said.
The law also “modernizes what an accredited investor is.” Kerrigan noted that, right now, an accredited investor is surrounded around wealth. “If you are a wealthy individual, then you can be an accredited investor.” This Act gives people the opportunity to be an accredited investor if you have an education or career experience, as well.
There are about 20 bills that are packed into the JOBS Act 3.0 that will “really help capital formation and increased capital access … We need to encourage more capital encouragement and investment in this country, particularly in start-ups.” And that is what this big package will do — create more access to capital and a good working team around entrepreneurs so that they can grow wealth more easily.
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