Today, April 5, 2012, President Obama signed into law the Jumpstart Our Business Start-ups Act (JOBS Act). This significant legislation substantially changes and liberalizes the landscape for both public and private companies seeking to raise capital. The following is a summary of the major components of the new law. While the Securities and Exchange Commission (SEC) will have the opportunity to shape the implementation of some of the provisions of the JOBS Act through rule and regulation, the JOBS Act will still stand as one of the most significant liberalizations of the securities laws in modern times.

The New Landscape for Emerging Growth Companies and IPOs Title I of the JOBS Act creates regulatory relief for a new type of issuer — the so called “emerging growth company” (EGC). An EGC is defined as any issuer with gross revenues of less than $1 billion during the prior fiscal year. Only companies that have gone public after December 8, 2011, are eligible to be considered EGCs.