The House passed the JOBS (Jumpstart Our Business Startups) Act today, a package bill aimed to make it easier for small businesses and start ups to raise capital.  This is obviously a momentous occasion, right?

Not quite.  As it turns out, the House has already passed most (4 out of 6) of the provisions of this bill in separate bills, including the Crowdfunding Act that I’ve been crowing about since October.  All those bills sailed through the House with ease only to disappear in the Bermuda Triangle that is the Senate.

The JOBS Act will loosen some of the Securities Act regulations, meaning it would be easier for small and mid-cap companies to “ramp up” capital formation on their way to a full and proper IPO.  All neat stuff worthy of serious debate and consideration, and maybe even a vote if we’re lucky.   

The House passed the JOBS act 390-23 (apparently there are 23 Representatives who HATE JOBS).  The White House fully supports it.  So what’s the hold up?

That “cooling saucer” we call the Senate, that’s what.  At this point, legislative milk is turning into ice cream.  Senate Leader Harry Reid has no apparent interest in passing this bill, and he risks a political debacle if he doesn’t get his act together (see: the previous paragraph).  I’m not saying that there aren’t any legitimate concerns about the impact this act would have on securities market and the potential for fraud – there are.  And certainly the SEC is too preoccupied with Dodd-Frank implementation to swiftly promulgate regulations to gap fill the would-be statute.  And don’t get me wrong: this is obviously a bit of political grandstanding by the GOP (any time someone passes a bill they already passes, you can be assured politics, not policy, is the driver). 

But, C’MON already. This week alone, I’ve worked with some partners here at Fox as they’ve found devilishly clever ways to help startup clients find (and negotiate with) VC and angel investors.  My experience helping these hardworking and bright entrepreneurs fight to find investment has certainly made me more sympathetic to their struggle.

Post Blog Post Note:  Then again, maybe not.  The Economist this week also ran an two interesting pieces on why our small business fetish may be holding us back, and how programs designed to help small businesses may retard their incentives for growth.  Check them out here and here.