In a near unanimous vote (406-4), the House of Representatives has passed the JOBS and Investor Confidence Act of 2018 (often being referred to as the JOBS Act 3.0). The bipartisan package includes a series of bills recently approved by the House Financial Services Committee intended to ease the regulatory landscape for raising and investing capital.
The legislation will significantly expand access to investment opportunities for entrepreneurs and small businesses’, and reduce regulatory burdens imposed on investors.
House Financial Services Committee Chairman Jeb Hensarling announced in his release that the series of bills will “breathe new life into markets that are suffocating under aging regulations” 
The Act aggregates a series of recently adopted bills aimed to expand access to capital and reduce investor reporting requirements, a few included bills that stand out:
- The Helping Angels Lead Our Startups Act (HALOS Act): Defines what an “angel investor group” is, a definition that has long prevented outreach to interested investment parties.
- The Small Business Mergers, Acquisitions, Sales & Brokerage Simplification Act: Simplifies the securities reporting requirements for M & A brokers assisting in transfer of assets of small, privately held companies.
- The Fair Investment Opportunities for Professional Experts Act: Expands the definition of an “accredited investor” to include those professionals with significant education or experience in evaluating investment risks.
- The Encouraging Public Offerings Act: Expands provisions of the JOBS act intended to ease transition to IPO to all public companies; allows companies to submit confidential SEC filings prior to formal public offering.
- The Developing and Empowering our Aspiring Leaders Act (DEAL Act): Updates the definition of a “qualifying investment” for venture capital firms, eliminating a significant hurdle to follow on investments in portfolio companies that go public.
In total, the package includes 32 bills that will significantly ease reporting requirements, access to capital, and opportunity to invest. A full list of the included bills can be found on the Financial Services Committee website here.
We will stay posted on the Act’s movement through Congress. Moisan Legal PC is a boutique business law firm based in New York City catering to entrepreneurs, creatives and innovators.