A newly released study has found that 24,000 new jobs should be created annually in Arizona directly as a result of a U.S. Securities and Exchange Commission rule change slated to become effective Monday, September 23.
Tempe, AZ -- (SBWIRE) -- 09/23/2013 -- A newly released study has found that 24,000 new jobs should be created annually in Arizona directly as a result of a U.S. Securities and Exchange Commission rule change slated to become effective Monday, September 23. The change mandated under Title II of the Federal J.O.B.S. (Jumpstart Our Business Startups) Act, requires the SEC to lift an 80-year-old Federal ban prohibiting advertising and general solicitation in raising private capital.
The study, conducted for Marketing 506c, Inc., concluded that over $2 billion annually in additional investment capital for Arizona businesses will become available as a result of the changes. Arizona’s $2 billion represents its share of the predicted $180 billion in additional capital forecasted nationally by the SEC. At recent employment levels, as reported by the U.S. Bureau of Labor Statistics, the resultant jobs created would represent approximately 10% of all new jobs in Arizona each year.
"Commencing on September 23 it will be significantly easier for private companies to raise money through the offering of their securities. This translates into increased Arizona employment directly attributable to the JOBS Act," said Ross Horwitz, CEO of Tempe, Arizona based Marketing 506c. The company assists small to medium-sized Arizona businesses with advertising under the JOBS Act to secure expansion capital.
Horwitz previewed the job creation information as a panelist at a seminar, sponsored by the Arizona State Bar Association, that focused on the new law and SEC rules. Also participating on the panel was Congressman David Schweikert (R-AZ), one of the original co-sponsors of the enabling JOBS Act legislation.
Congressman Schweikert, commenting on the newly released study said, "I am very pleased to hear about today's announcement and am happy to be a part of the impressive increased job creation and captial formation for Arizona."
The study was commissioned by Marketing 506c because they were specifically organized to help Arizona businesses benefit from these landmark changes in raising capital and creating new jobs. Most experts recognize small business as the backbone of job creation, according to Horwitz.
The JOBS Act, which enables this and several other key reforms for small business, was originally signed into law on April 5, 2012 with near unanimous approval by Congress. It marks a reversal of a doctrine which has been Federal law since the time of the Great Depression. According to Congressman Schweikert, there will be additional new provisions going into effect soon that allow start-up and smaller companies to utilize crowdfunding and other previously unavailable methods of securities offerings.
An abstract of the “White Paper: New Jobs Heralded from Landmark Legislation” will be available and can be downloaded at the company’s website free of charge (Marketing506c.com).
The new SEC rule mandates that all investors in this type of investment must now meet minimum suitability standards established by the SEC. Horwitz cautioned anyone contemplating utilizing the new provisions to seek professional advice.
Horwitz believes the study numbers are conservative, being based solely on initial jobs to be created and did not add a multiplier effect, which is typically done in such studies. The number of jobs created was determined by analyzing a combination of the SEC’s historic Form D filings, SEC projected filing increases due specifically to the Jobs Act and job creation data provided by the Center for Venture Research at the University of New Hampshire.