What is A Regulation (Part 2)
Title I and Title II
Title I and II are simply simple names referring to the two parts of the legislation that make up the JOBS Act. These are extremely important to the startup and crowdfunding portions of small business ventures. While these changes started in 2011, Title II did not go into effect until 2013. There is a Title III to be put into practice in May of 2016 that concerns equity crowdfunding and is made possible by the rules accepted by the SEC after initiation of Title II.
Accredited investors can be an asset to new companies because they do not need as much protection by the government. These financially stable and well established investors do not need backup and can stand alone when it comes to financially backing a business startup. These types of investors are used to all the paperwork and regulations of many business investments, but may like the ease of small business backing with its more lenient strategies.
The new laws are extremely helpful when the health of the economy is concerned. The legislative changes have brought hope many entrepreneurs who may have been holding back from taking the leap into the business world. With various options and increased eagerness in crowdfunding, the traditional small businesses that many communities were built on may make a substantial comeback.