Experts Expect JOBS Act to Spark Growth in Startups; Law Aimed at Creating Opportunities for Nontraditional Investors
Giegerich, Steve, St Louis Post-Dispatch (MO)
ST. LOUIS - A group of financial advisers and economic development specialists expressed cautious optimism Thursday that the federal Jumpstart Our Business Startups Act will spark the business startup efforts key to putting the regional economy back on track.
"It's not going to be a rocketship, but we'll get a set of keys to the shackles that have prevented access to capital (investment)," said Jay DeLong, the vice president for New Ventures with the St. Louis Regional Chamber and Growth Association.
DeLong was one of five panelists at a Federal Reserve Bank of St. Louis forum to address the potential outcomes for local entrepreneurs when the JOBS Act starts to take hold this fall.
The legislation, passed in April, opens the door for nontraditional investors to finance small business ventures in far smaller amounts than the funding flowing through venture capital firms.
"It opens the way for investors to come in at $25,000 or $50,000," explained panelist J. Joseph Schlafly, a senior vice president for private markets with Stifel Nicolaus. …