The Jumpstart Our Business Startups Act (JOBS Act) passed by the House yesterday, includes several provisions to relax certain SEC requirements for smaller companies, including under Sarbanes-Oxley Section 404(b), to help faciliate capital formation. The Senate still has to vote on its version of the bill (see our previous post post on the Senate hearing earlier this week).
Among the significant provisions in the JOBS Act, is HR 3066, the Reopening American Capital Markets to Emerging Growth Companies Act of 2011), which creates a new category of SEC filer, the Emerging Growth Company, defined as public co's with less than $1 billion in revenue. Such co's would be exempted from the internal control provisions of Sarbanes-Oxley Section 404(b) (however Section 404(a) would continue to be applicable) and would be subject to additional modifications of SEC reg's under this and other sections of the JOBS Act. Read more about the JOBS Act here.