The JOBS Act

The JOBS Act, or Jumpstart Our Business Startups Act, was passed in 2012 to encourage funding for small businesses and startups. It aimed to ease regulations for companies seeking to raise capital, particularly through crowdfunding—a method where many people contribute small amounts of money. The Act also increased the limit for companies going public and allowed them to solicit investments publicly while maintaining investor protections. By making it easier for small businesses to access funds, the JOBS Act seeks to stimulate job creation and economic growth.