House of Representatives Passes the JOBS Act
The House of Representatives overwhelmingly passed the "Jumpstart Our Business Startups (JOBS)" Act this week, where it now heads to the Senate for consideration. This represents one of the first bipartisan job growth packages that is expected to be signed into law this year.
"The strong bipartisan support for this legislation shows that when Congress works together, we can help empower our start-ups and job creators to deliver new innovations and life-changing products," said Mark Leahey, President and CEO of MDMA. "America's medical technology innovators are overwhelmingly small businesses, with many of the cutting-edge devices being developed by start-ups."
The JOBS Act is combination of several smaller bills authored by Members of the House. Some of the provisions include:
- Making it easier for small companies to go public by providing them a temporary reprieve from Securities and Exchange Commission regulations;
- Removing SEC restrictions preventing small businesses from using advertisements to solicit investors;
- Removing SEC restrictions on "crowdfunding" so entrepreneurs can raise equity capital from a large pool of small investors; and,
- Raising from $5 million to $50 million the ceiling for shares a private company can sell as part of a public offering before having to register with the SEC.
Leahey noted that while the JOBS Act is a step in the right direction, MDMA continues to urge Members of Congress to also repeal the medical device tax which is already proving to be a huge hurdle to innovation and job creation.