(NewsUSA) – Congress and the Obama Administration, working in concert, may have produced monumental changes to SEC law and regulation that could stimulate the growth of small and medium-sized enterprises throughout the United States.
The changes are potentially significant, affecting millions nationwide. According to the Small Business Administration (SBA), small businesses in America account for 49 percent of all private sector employment. There are about 28 million small businesses and SMEs, making up about 46 percent of the nation’s gross domestic product (GDP), with a total value reaching $7.7 trillion dollars.
Despite the fact that these smaller entities account for more than 99 percent of all U.S. businesses, the Federal regulatory climate has been tilted towards the challenge of controlling large-scale companies. The resulting body of complex law and regulation has created a challenging maze for SMEs to navigate. As a result, small businesses have had fewer options for raising capital, depressing job creation and employment opportunity.
“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.”
That is where the changes in SEC law and regulation come into play. In April 2012, President Obama signed a bipartisan bill nicknamed “The JOBS Act.” The bill is intended to level the playing field by streamlining regulatory requirements, allowing small businesses and SMEs access to billions of dollars held by private investors.
Now, in theory, smaller business will be able to utilize the same mechanisms previously held by larger corporations to raise capital for growth and expansion.
The law is new and much has yet to be determined regarding its effectiveness and application. In addition, many tough and complicated safeguards remain to prevent fraud and abuse. SMEs hoping to use JOBS Act provisions may want to consider counsel from a qualified and experienced service provider.
One such provider is REGULUS. The entity was established to give advisory services to the SME community, with a specific focus on middle-sized businesses.
REGULUS is comprised of a team of hands-on experts who offer personalized resources, including due diligence review, drafting business plans and regulatory filings, and providing strategic business and management consulting.
As exciting changes take hold, these services may prove invaluable to affected businesses.
To learn more, visit REGULUS at www.reguluscorp.com.