On April 5, 2012, President Obama signed the JOBS Act into law with full bipartisan support from the U.S. Congress. It was one of America’s most promising pieces of legislation to jumpstart America’s economy by providing a new pool of investment capital for startups and small businesses through a process known as Equity Crowdfunding.
The law allows 98% more Americans to begin investing in small local businesses they know and trust in return for an equity position that will provide a return on investment if the business becomes successful.
Right now there are approximately 260 million Americans that are 18 years or older. The JOBS Act will allow unaccredited investors to invest up to $2,000 per year in small businesses that promise to provide products and services they want to see introduced into their community. If a mere 10% of unaccredited investors invested $2,000 it would inject $52,000,000,000 into the local economy.
Instead of incurring more tax payer debt, Americans for the first time in history would be able to steer the economy with their hard earned dollars. They would invest in products they actually want to buy. There would be zero red tape, pork barrel spending, or financial roadblocks that to date have preventing small businesses from getting access to the badly needed investment capital they need to startup or expand operations. Crowdfunding is a financial tool that will create millions of jobs at zero expense to the U.S. Government or its taxpayers.
And since Crowdfunding investments are financing the creation of hundreds of thousands of small businesses that will not only create new jobs, but buying new tools, vehicles, office equipment, office space rentals, and of course, paying more taxes to the U.S. Government, why not make all Crowdfunding investments tax deductible?
This would be a great way to adjust the financial hardships that are now facing Americans in light of recent government failures to get America back on track.
Per the Small Business Administration small businesses accounted for:
- 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009.
- Represent 99.7 percent of all employer firms.
- Employ about half of all private sector employees.
- Pay 43 percent of total U.S. private payroll.
- Have generated 65 percent of net new jobs over the past 17 years.
- Create more than half of the nonfarm private GDP.
- Hire 43 percent of high tech workers (scientists, engineers, computer programmers, and others).
- Made up 97.5 percent of all identified exporters.
- Produced 31 percent of export value in FY 2008.
- Produced 16.5 times more patents per employee than large patenting firms.
Why not make it possible for average Americans to fund the creation of more small businesses?
When the U.S. Congress passes a bill and the President of the United States signs it into law, all Americans are expected to abide by the law regardless of whether they feel it is right or wrong. Why then are the executives the Securities Exchange Commission (SEC) allowed to break the JOBS Act law that clearly states that Crowdfunding guidelines be issued by January 1, 2013?
President Obama’s second term inauguration speech promised to help small businesses and get America back on its feet and recapture the #1 position of worldwide leadership. Is it true the SEC has more power and clout on Capitol Hill than the President of the United States or the U.S. Congress?
It makes one wonder where is the current administration’s will power to do what America needs most, create new jobs and instill a sense of national pride that we are the still the best country in the world?
Crowdfunding naysayers point to the potential for fraud, but in reality this is just a political excuse not to shift the financial power from Wall Street to the average American for wealth creation. Why not give the average American a chance to make a good profit from wise, well-thought investment in local companies they know and trust?
If Australia and the United Kingdom have been doing Crowdfunding for years with zero cases of fraud, why is our government allowing our country to fall behind in the race for worldwide economic recovery? Soon Equity Crowdfunding will be legal in France, Belgium, Germany, Ireland, Finland, Italy, Hong Kong and South Africa, but not the United States.
Have America’s leaders lost the ability to think straight and put innovative policies in place that are clearly working in other countries successfully? If we are not smart enough to create our own rules, why not copy another country’s rules that are working well?
America used to be recognized as leader and a worldwide power, but our reputation is fading and the American public is sick and tired of politicians not doing what is right for the general population. We need jobs right now, not several years from now.
The U.S. Government has done their job to put a law in place that will empower our nation to become great again. It is now time for the SEC to follow suit and get the Title II and Title III guidelines issued as soon as soon as possible so that America can get back to work.
Sign the White House Crowdfunding Petition
If you support the Crowdfunding industry and would like to send a message to the White House that America needs more jobs now, not in a year or two, but right now please add your name to this White House Crowdfunding Petition by March 30, 2013.
How to Contact the SEC Directly
1. Via Email:
TBD, SEC Chairman
Daniel M. Gallagher, SEC Commissioner
Troy A. Paredes. SEC Commissioner
David Marsh, SEC Staff
2. Via Postal Mail:
Securities Exchange Commission (SEC)
Attn.: JOBS ACT/Crowdfunding Guidelines
100 F Street NE
3. Via Phone:
Tel: (202) 942-8088
4. Online Comment Form: