The JOBS Act passed through the House just weeks ago and is now in the hands of the Senate. There has been much debate as of late on whether or not this series of bills will put investors at risk and the debate has continued in the Senate. While the question of whether or not the JOBS Act will truly improve the job market has become somewhat irrelevant, the energy expended on the Act seems to be increasing.
According to Deseret News, the Senate voted on Wednesday 76-22 to limit the debate on the JOBS Act. If you can remember from previous posts, the JOBS Act specifically is the Jumpstarting Our Business Startups Act. The main goal of the Act is to make gathering funding for startups much easier by increasing the cap amount and increasing the number of investors allowed. If you’ve been following the JOBS Act trail, then you are fully aware that many financial experts and advisers feel that by making it easier for startups to gain more funding, the investors that are doing the funding can be made vulnerable.
Additionally, House Majority Leader Harry Reid seemed to be holding up the passing of the Act as leverage for 17 judicial nominees that were held back by Republicans. In so many words, the JOBS Act was being used in a snarky game of politics between Republicans and Democrats. However, it seems that the Senate has started to address the bills and the majority vote on limiting debate on the JOBS Act is good news. While Republicans in the Senate understand that the Act won’t completely turn around the market, they know that it is a step in the right direction.
Senate Minority Leader Mitch McConnell (R-Ky.) was quoted in the Politico saying, “these bills on their own certainly won’t solve the jobs crisis. But they will make it a lot easier for entrepreneurs and innovators to get the capital they need to build businesses and create jobs.” It’s difficult to argue with this standpoint, but Democrats in the Senate are not convinced. As reported by Deseret, they want to add two amendments to the bills that would increase protection for investors. Unsurprisingly, the House wants the full Act passed through the Senate unchanged. After all, it did pass through the House with a 390 to 23 vote in favor of it.
Regardless of what the House may think, Reid thinks the JOBS Act needs a lot of work. “I want everyone to know, the bill is imperfect and perhaps that is an understatement.” Reid’s thoughts on the bills certainly are not hidden, but it’s difficult to decipher if he takes issue with the actual bills or is simply allowing general politics get in the way. It was widely known that Reid took no issue with letting the Act sit in the Senate while he pressed Senate Republicans to pass the judicial nominees he wanted passed.
Regardless of what the Senate is doing, the JOBS Act surprisingly has gained significant bi-partisan support. Again, we will just have to wait and see what happens to the Act as it slowly makes its way through the Senate.
What do you think of the JOBS Act? Do you think it may actually put investors at risk?