JOBS Act

Definition:

Jumpstart Our Business Startups Act 2012. The JOBS Act is a federal law passed by the US Congress and intended to encourage capital-raising for small businesses by easing some securities regulations relating to disclosure. It also created a new issuer category of Emerging Growth Company (EGC) in an attempt to provide alternative means to raise capital. As a result of the JOBS Act, the SEC removed its ban (July 2013) on General Solicitation and General Advertising in Rule 144A Offerings and certain offerings made in reliance of Regulation D.

The JOBS Act also regulates Crowdfunding.

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