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profits in a business; rather Marco Reus Jersey , money was contributed in the form of donations, or in return for the product being made. The JOBS Act creates an exemption from the registration requirements of the Securities Act that provides for a form of securities crowdfunding.

Under JOBS Act Regulation Crowdfunding, companies will be limited to raising $1 million in any 12-month period. Companies cannot crowdfund on their own, but will have to engage an intermediary that is registered with the SEC. These intermediaries will be subject to a number of requirements.

Individual investors will be limited in the amount they can invest by way of crowdfunding in any 12-month period to if their annual income or net worth is less than $100,000—the greater of $2 Marc-Andre ter Stegen Jersey ,000 or 5 percent of annual income or net worth, or if their annual income or net worth is more than $100,000—10 percent of annual income or they have a net worth up to a maximum of $100,000. (When calculating net worth, the primary residence is not included.)

The SEC must first write rules that govern how companies can use JOBS Act crowdfunding to raise money from investors and set out the responsibilities of intermediaries. These rules will include what must be disclosed to prospective investors before they decide to participate Manuel Neuer Jersey , as well as requirements for how intermediaries will operate. Initial guidance on crowdfunding intermediaries is available here.

Companies cannot use the JOBS Act crowdfunding to raise funds from investors until the SEC adopts these rules.

Expansion of Regulation A

The JOBS Act requires the SEC to develop rules for a new exemption similar to existing Regulation A, which will permit offerings of up to $50 million a year without SEC registration (Regulation A currently has a limit of $5 million).

Like current Regulation A, the new exemption will require the filing of an offering statement that will be subject to review by SEC staff. The new exemption will also permit "testing the waters" in connection with the offering. In a change from current Regulation A, issuers will be required to file audited financial statements annually with the SEC, and may be subject to additional reporting requirements Lukas Podolski Jersey , depending on the terms and conditions the SEC ultimately imposes on the exemption.

Companies cannot use the Regulation A exemption until the SEC adopts final rules.

Do state law requirements apply in addition to federal requirements?

Yes. State governments have their own securities laws and regulations. If a company is selling securities, it must comply with both federal regulations and state securities laws and regulations in the states where securities are offered and sold (typically, the states where offerees and investors are based). A particular offering exempt under the federal securities laws is not necessarily exempt from any state laws. Each state’s securities laws have their own separate registration requirements and exemptions to registration requirements. State securities regulators and more information about state securities laws, can be found on the website of the North American Securities Administrators Association(NASAA).

To facilitate small business capital formation, NASAA Kevin Volland Jersey , in conjunction with the American Bar Association, developed the Small Company Offering Registration or "SCOR" program. The program includes a simplified "question and answer" registration form that companies can use as the disclosure document for investors in connection with a Rule 504 offering. The SCOR program was primarily designed for state registration of small business securities offerings of up to $1 million annually conducted under the SEC’s Rule 504 of Regulation D. To assist small business securities issuers in the SCOR program, NASAA maintains a web page providing information on the program.

To assist small businesses seeking to undertake registration of a securities offering in several states, some states coordinate their reviews through a NASAA program called "coordinated review." NASAA maintains a web page that provides information for companies seeking additional information on its coordinated review program.

What resources and opportunities are available through the U.S. Small Business Administration?

The U.S. Small Business Administration (SBA) was established in 1953 to aid, counsel Karim Bellarabi Jersey , and protect the interests of the nation’s small business community. The SBA accomplishes this in part by working with intermediaries, banks, and other lending institutions to provide loans and surety bonds. Though the SBA does not provide grants to help start a business, it does provide information on organizations and sites that can assist companies in locating special purpose grants. Visit the SBA’s website and learn about financing, contracting Jonas Hector Jersey , disaster assistance, and training opportunities to help a business succeed.

The SBA Answer Desk is a national toll-free telephone service providing information to the public on small business problems and concerns; moreover, this service provides general information about SBA programs and other programs available to assist the small business community. The SBA Answer Desk can be contacted at 1-800-U-ASK-SBA (1-800-827-5722) or TTY at (1-800-704) 344-6640, or by e-mailing them at answerdesk@sba.gov.

More Information

The SEC maintains a website with features addressing the needs of small businesses. The SEC also provides informal guidance to small businesses by answering telephone and e-mail questions.

Small business information can be found at the SEC’s website at www.sec.gov and clicking on "Information for—Small Businesses." The SEC forms and regulations used most frequently by small businesses are available from this location by clicking on "Forms and Regulations." Other SEC forms are available through the online SEC forms list.