of profits in a business; rather http://www.hockeyblackhawksnhl.com/authentic-michal-rozsival-blackhawks-jersey/ ,
money was contributed in the form of donations, or in return for the product
being made. The JOBS Act creates an exemption from the registration requirements
of the Securities Act that provides for a form of securities

Under JOBS Act Regulation Crowdfunding, companies will be
limited to raising $1 million in any 12-month period. Companies cannot crowdfund
on their own, but will have to engage an intermediary that is registered with
the SEC. These intermediaries will be subject to a number of

Individual investors will be limited in the amount they can
invest by way of crowdfunding in any 12-month period to if their annual income
or net worth is less than $100,000—the greater of $2,000 or 5 percent of annual
income or net worth, or if their annual income or net worth is more than
$100,000—10 percent of annual income or they have a net worth up to a maximum of
$100,000. (When calculating net worth http://www.hockeyblackhawksnhl.com/authentic-michael-jordan-blackhawks-jersey/ ,
the primary residence is not included.)

The SEC must first write rules
that govern how companies can use JOBS Act crowdfunding to raise money from
investors and set out the responsibilities of intermediaries. These rules will
include what must be disclosed to prospective investors before they decide to
participate, as well as requirements for how intermediaries will operate.
Initial guidance on crowdfunding intermediaries is available

Companies cannot use the JOBS Act crowdfunding to raise funds from
investors until the SEC adopts these rules.

Expansion of Regulation

The JOBS Act requires the SEC to develop rules for a new exemption
similar to existing Regulation A, which will permit offerings of up to $50
million a year without SEC registration (Regulation A currently has a limit of
$5 million).

Like current Regulation A, the new exemption will require
the filing of an offering statement that will be subject to review by SEC staff.
The new exemption will also permit "testing the waters" in connection with the
offering. In a change from current Regulation A, issuers will be required to
file audited financial statements annually with the SEC, and may be subject to
additional reporting requirements, depending on the terms and conditions the SEC
ultimately imposes on the exemption.

Companies cannot use the Regulation
A exemption until the SEC adopts final rules.

Do state law requirements
apply in addition to federal requirements?

Yes. State governments have
their own securities laws and regulations. If a company is selling securities,
it must comply with both federal regulations and state securities laws and
regulations in the states where securities are offered and sold (typically, the
states where offerees and investors are based). A particular offering exempt
under the federal securities laws is not necessarily exempt from any state laws.
Each state’s securities laws have their own separate registration requirements
and exemptions to registration requirements. State securities regulators and
more information about state securities laws http://www.hockeyblackhawksnhl.com/authentic-martin-havlat-blackhawks-jersey/ ,
can be found on the website of the North American Securities Administrators

To facilitate small business capital formation,
NASAA, in conjunction with the American Bar Association, developed the Small
Company Offering Registration or "SCOR" program. The program includes a
simplified "question and answer" registration form that companies can use as the
disclosure document for investors in connection with a Rule 504 offering. The
SCOR program was primarily designed for state registration of small business
securities offerings of up to $1 million annually conducted under the SEC’s Rule
504 of Regulation D. To assist small business securities issuers in the SCOR
program, NASAA maintains a web page providing information on the

To assist small businesses seeking to undertake registration of
a securities offering in several states, some states coordinate their reviews
through a NASAA program called "coordinated review." NASAA maintains a web page
that provides information for companies seeking additional information on its
coordinated review program.

What resources and opportunities are
available through the U.S. Small Business Administration?

The U.S. Small
Business Administration (SBA) was established in 1953 to aid, counsel, and
protect the interests of the nation’s small business community. The SBA
accomplishes this in part by working with intermediaries, banks http://www.hockeyblackhawksnhl.com/authentic-marian-hossa-blackhawks-jersey/ ,
and other lending institutions to provide loans and surety bonds. Though the SBA
does not provide grants to help start a business, it does provide information on
organizations and sites that can assist companies in locating special purpose
grants. Visit the SBA’s website and learn about financing, contracting, disaster
assistance, and training opportunities to help a business succeed.

SBA Answer Desk is a national toll-free telephone service providing information
to the public on small business problems and concerns; moreover, this service
provides general information about SBA programs and other programs available to
assist the small business community. The SBA Answer Desk can be contacted at
1-800-U-ASK-SBA (1-800-827-5722) or TTY at (1-800-704) 344-6640, or by e-mailing
them at answerdesk@sba.gov.

More Information

The SEC maintains a
website with features addressing the needs of small businesses. The SEC also
provides informal guidance to small businesses by answering telephone and e-mail

Small business information can be found at the SEC’s website
at www.sec.gov and clicking on "Information for—Small Businesses." The SEC forms
and regulations used most frequently by small businesses are available from this
location by clicking on "Forms and Regulations." Other SEC forms are available
through the online SEC forms list.

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