New Law : How a New Law Lets Small Businesses Advertise Capital Needs

Every great business idea starts with hope. A vision. A simple thought that says, this could work. But for many entrepreneurs, that dream often stops at one big problem—money. Not everyone has investors, savings, or wealthy connections. For years, funding was the biggest wall standing between ideas and reality.That wall began to crack on September 23, 2013. A new law quietly changed how startups raise capital. And for small businesses across the country, it opened doors that were once locked.

What Changed With the JOBS Act?

On September 23, 2013, Title II of the JOBS Act came into effect. This law made it easier for startups and small businesses to raise funds.

Key changes include:

• Entrepreneurs can publicly advertise capital needs

• Equity investments can be promoted online

• Social media can be used to reach investors

• No need to register shares for public trading

This was part of the Jumpstart Our Business Startups Act of 2012, created to encourage innovation and business growth.

Why This Matters for Entrepreneurs

Many entrepreneurs have strong ideas but lack funding. Traditional funding methods are often hard to access.

This law helps because:

• It removes barriers to finding investors

• Give visibility to new ideas

• It supports early-stage startups

• Encourages business growth

For many founders, this change meant possibility. Ideas no longer had to stay on paper.

Equity Crowdfunding vs Donation Crowdfunding

Many people already know crowdfunding through platforms like Kickstarter and Indiegogo. But there is a key difference.

Donation-Based Crowdfunding

• Backers donate money

• No ownership is offered

• Rewards may be given

Equity-Based Crowdfunding

• Investors receive ownership

• Funds are raised for growth

• Investors share future success

The JOBS Act focuses on equity-based fundraising, not donations.

What’s Coming Next?

There is another part of the law still waiting to take effect. This section will allow everyday people, not just accredited investors, to invest small amounts in startups. This could:

• Expand access to funding

• Bring more investors into startups

• Create faster business growth

While exciting, it also brings risks.

Concerns Around Crowdfunding

Not everyone agrees on the impact of this law. Some concerns include:

• Fast growth without experience

• Untested business models

• Inexperienced founders managing funds

Still, many believe this law marks a major step forward for entrepreneurship in the U.S.

Finding the Right Team or Support

Funding is not the only challenge. Many startups struggle to find skilled cofounders, especially technical ones.

Good alternatives include:

• Startup incubators

• Product development partners

• MVP development companies

Some incubators help build products in exchange for equity or reduced fees. This can be helpful for app development or early product launches.

Turn Your Idea Into a Business Faster

If you have a business idea, starting from scratch is not always needed. Ready-made software can help you launch faster and at a lower cost.

Business Solutions You Can Build With iScripts

•  iScripts AutoHoster: Start a web hosting business
• iScripts eSwap: Create a swapping or bartering website
• iScripts GoStores: Build an ecommerce store builder platform
• iScripts MultiCart: Launch a multi-vendor marketplace
• iScripts PrintLogic: Start an online design and printing business
• iScripts ReserveLogic: Create a hotel or booking platform
• iScripts SocialWare: Build a social networking website
• iScripts Cybermatch: Launch a dating website or app
• iScripts EasyCreate: Offer website builder services
• iScripts EasyIndex: Create a business directory
• iScripts MultiCart Enterprise: Power a large multi-store marketplace
• iScripts NetMenus: Build an online food ordering platform
• iScripts Backuper:  Start an online data backup service
• iScripts SupportDesk: Manage customer support with a help desk
• iScripts DailyDeals:  Launch a daily deals platform
• iScripts VistaCart: Create an open-source ecommerce store

Each solution is designed to help entrepreneurs launch faster and focus on growth.

Final Thoughts

The JOBS Act changed more than funding rules. It changed mindsets. Entrepreneurs now have more control, more visibility, and more opportunity than ever before. Crowdfunding is no longer just about donations. It is about ownership, belief, and shared success.

If you have an idea, the tools and opportunities are now within reach. All that remains is taking the first step.