By now, you’ve probably heard that the JOBS Act passed. The “Jumpstart Our Business Startups,” or JOBS Act, will allow entrepreneurs to crowdfund online to fund small businesses and startups. Plus, entrepreneurs can raise funds from non-accredited investors. The catch: The regulations aren’t in place until the SEC review period is up in January 2013.
While the bill itself is effective immediately, still pending are how the sections that fall under the SEC scope will be regulated. The SEC has 270 days to focus on how to regulate the offerings targeting non-accredited investors. In the meantime, entrepreneurs will be able to crowdfund only to accredited investors beginning July 4, 2012.