Today, Monday, May 16th, 2016 marks the beginning of a new era in American capital formation. Title III of the historic JOBS Act signed by President Barack Obama on April 5th, 2012 is now a reality. Regulation crowdfunding, known as Reg CF, allows startups and small businesses to raise up to $1 million annually from small-dollar investors through web-based funding portals.
Also effective upon enactment, Title VII of the JOBS Act requires the Securities and Exchange Commission to conduct outreach to inform small and medium sized businesses, as well as businesses owned by women, veterans and minorities, of the changes made by the JOBS Act.
To this end, I personally believe that equity crowdfunding is the most significant piece of financial based legislation for African Americans since the Emancipation Proclamation’s 1863 emancipation of the Southern slaves.