October 26, 2014
Dear Madam or Sir,
As a startup business owner, I write to strongly urge the creation and release of Section III JOBS Act rules and regulations to allow small business to raise equity rounds from non-accredited investors.
We have sought funding from traditional sources for nine months, and have exhausted most our resources in doing so; angel investors aren't interested in investing in hardware, and SBA-loaning banks will not give loans without at least 100% collateral (in addition to the SBA guarantee). The result: Seed money is - or at least has been for us - impossible to gather without significant, existing relationships with very wealthy individuals.
By contrast, I have significant relationships with several hundred micro-investors who are ready to invest $1,000 - $2,000 each into our company; we could get funded very, very quickly - and begin hiring employees! - if your Commission would release the rules for Section III of the JOBS Act.
These rules are now 500 days overdue. While I understand that there are many ramifications for these rules, surely these particularities can be worked out and fine-tuned in practice, as with every law and regulation. Please, PLEASE release SOME form of rules for Section III of the JOBS Act so that small business owners like myself can begin revitalizing the American economy.
Thank you,
Brett Peterson