By a vote of 380 to 41, the House of Representatives today passed the Jumpstart Our Business Startups ("JOBS") Act, without further amendment. The JOBS Act will now be sent to President Obama. The White House has previously voiced support for the JOBS Act and the President's signature is expected.
The JOBS Act includes provisions designed to ease the IPO process and public company reporting obligations for emerging growth companies ("EGCs"), directs the SEC to deregulate publicity restrictions around Regulation D and Rule 144A offerings, increases the shareholder threshold requiring a private company to begin reporting as a public company and loosens restrictions on pre-IPO research relating to EGCs, among other things. Please see our March 9 memo for a summary of the original House bill (prior to the Senate's "crowdfunding" amendments), and our memo released yesterday, The JOBS Act: Implications for Capital Markets Professionals, Pre-IPO Companies and Private Offerings, for more information about the potential impact of the JOBS Act. Please also see our March 23 memo for a summary of certain implications for private funds.