The President is expected to sign legislation that among other things relaxes financing rules for smaller businesses. Though the bill enjoys broad, bipartisan support, consumer and investor advocates are justifiably concerned that the so-called jobs legislation is little more than a license for new rounds of financial skulduggery and fraud.
I believe that concerns about investor protection and proper disclosure do indeed have merit. But I also believe that easing the exercise of raising capital does promote much needed entrepreneurship and job growth. I thus conclude that while investors will face a greater burden in evaluating such companies and that penalties for fraudulent behavior should be strengthened, greater flows of capital to small business is worth the risk. I also believe that the legislation creates opportunities for new private sector-based services for investment evaluation.