WAPO: Congress aims for job creation through small businessesBipartisanship is rare in Congress these days, but if you want to get Republicans and Democrats to support your industry’s wish list, just recast it as a job creation program.
Bipartisanship is rare in Congress these days, but if you want to get Republicans and Democrats to support your industry’s wish list, just recast it as a job creation program. That’s one lesson of the Jumpstart Our Business Startups Act. A package of measures long sought by Silicon Valley and its venture-capitalist allies, the JOBS Act would significantly deregulate start-up company fundraising. It passed the Senate, 73 to 26, on Thursday and seems headed for approval soon in the House, which voted 390 to 23 to approve an earlier version March 8. President Barack Obama has signaled his intention to sign it.
The case for the JOBS Act goes like this: Small companies create jobs. The easier it is to fund a small company, the more jobs there will be. Federal rules make it harder for start-ups to raise capital. Ergo, relax the rules.
Specifically, the JOBS Act creates a new category of “emerging growth companies,” with $1 billion or less in annual revenue, and reduces their required financial disclosures for initial public offerings of stock.
Given the bill’s likely adoption, we’ll find out soon enough if the JOBS Act really is the engine of growth its proponents claim. One thing the law cannot alter is the need for Congress and regulators to stay alert for signs these businesses are abusing their freedom.