Working together, Congress and Obama Administration may have made significant changes to SEC regulation and law that could spur the growth and development of small and medium-sized companies throughout the United States.
These changes could have a significant impact on millions of people across the country. According to the Small Business Administration, 49 percent of private sector employment is held by small businesses in America. About 28 million small businesses (and SMEs) make up 46 percent of America’s Gross Domestic Product (GDP) with a total value of $7.7 Trillion.
These smaller companies account for over 99 percent of all U.S. business. However, the Federal regulatory environment has been geared towards controlling large-scale businesses. Complex law and regulations have created a maze for small- and medium-sized businesses. This has meant that small businesses have less options to raise capital, which can lead to a decrease in job creation and employment opportunities.
“So much of our national focus has been on the excesses of big banks that we have forgotten that the real economic engine of the U.S. is small business,”Notes REGULUS CEO David Emery. “We need to give small businesses a means to reach their potential.”
This is where SEC regulation and law changes come in to play. President Obama signed a bipartisan bill in April 2012 that was nicknamed “The Obama Act”. “The JOBS Act.”This bill is designed to even the playing field and streamline regulatory requirements to allow small businesses and SMEs to access billions of dollars owned by private investors.
In theory, smaller businesses will now be able use the same mechanisms that larger corporations used to raise capital for expansion and growth.
It is still a new law and much remains to be done regarding its effectiveness as well as its application. Many complex safeguards are still in place to protect against fraud and abuse. A qualified and experienced service provider may be able to offer advice to SME’s who want to take advantage of the JOBS Act provisions.
REGULUS is an example of such a provider. REGULUS was established to offer advisory services to SME communities, with a particular focus on mid-sized businesses.
REGULUS is a group of experienced professionals who provide personalized resources such as due diligence review, the drafting of business plans and regulatory filings and strategic business and management consulting.
These services can be invaluable to businesses that are affected by the exciting changes taking place.
REGULUS is a great resource for information. www.reguluscorp.com.