Tue. Mar 9th, 2021




3 min read
crowd-funding element will help make it easier for small companies to access capital

Miami Herald
WASHINGTON — President Barack Obama signed bipartisan jobs legislation Thursday that will help small businesses and make it easier for startups to raise capital.
“When their ideas take root, we get inventions that can change the way we live,” Obama said in the Rose Garden, flanked by lawmakers and entrepreneurs. “And when their businesses take off, more people become employed.”
Some Democrats, however, raised concerns that the so-called JOBS Act, or Jumpstart Our Business Start-ups, softened investment protections enacted after the dot.com excesses and Wall Street meltdowns and the changes could lead to fraud and abuse.
Speaking to an invited audience that included entrepreneurs — including South Floridians Albert Santalo, founder, president and CEO of CareCloud; and Zalmi Duchman, founder and CEO of The Fresh Diet — Obama indicated that he’s aware of those concerns and has directed top officials to “keep a close eye” on how it goes into effect.

The main part of the bill would phase in Securities and Exchange Commission regulations over a five-year period to let smaller companies go public sooner. Firms that have annual gross revenues of less than $1 billion would enjoy this “emerging growth company” status.
Both Duchman, whose North Miami-based company delivers healthy, gourmet meals nationwide, and Santalo said the bill would benefit South Florida because greater access to capital could ultimately bring more jobs to the region. Both also said they would consider an IPO.
“We certainly look at an IPO as a realistic possibility for CareCloud. This new legislation would allow us to do it sooner,” said Santalo, whose three-year-old Miami-based company provides cloud-based practice management, electronic health record and medical billing software and services for medical groups.
“Like any company, we have to be laser-focused on making sure we stay ahead of our competition,” Santalo said. “The JOBS Act now grants us greater access to new capital if we determine that is what we need, and gives us the same advantage that public companies have in raising capital.”
The bill combines a number of bipartisan bills that exempt newer companies from SEC reporting rules in order to reduce costs and red tape. Another provision facilitates the practice of “crowd-funding” in which the Internet is used to solicit a large number of smaller investors.
Sara Hanks, a securities attorney and co-founder of CrowdCheck, a company aimed at helping startups, said the crowd-funding element will help make it easier for small companies to access capital but warned it will be up to investors and entrepreneurs “to protect themselves from deals that are too good to be true.”
The legislation removes SEC regulations preventing small businesses from using ads advertisements to attract investors. It also raises from 500 to 2,000 the number of shareholders a company or community bank can have before it must register with the SEC, a provision Duchman said could be beneficial.
“I believe this JOBS Act is a game-changer for small business in South Florida and around the nation,” said Duchman, who launched his company using credit-card debt in 2006.


  1. I’d sure like a real loan; the banks and other groups are not loaning money unless the products being loaned for have a 2 year or longer traceable record of sales.. ok for most but it stops me from launching a new never before seen or sold item..
    Real start ups need real money.
    I have groups ready willing and able to participate in all aspects of commerce for my innovations, except the group to start it off by funding the distribution of manufactured shelve able products. The one group that has to be in place and invest to start the real money earning of all groups involved.
    When you make it so that those groups, able to loan money, really do loan money to me then I’ll be happy!
    My plans are to be a “Merchant Supplier”; that is I/we have a professional relationship with all aspects of the businesses involved.
    Facts: Manufactures are ready after seeing the designs made professionally. Manufactures have made over 300 products for free for us to sample the market leaders of retail. We did that. The packagers are ready; and can package, print, label, Bar Code, RFID systems also are ready. Storage warehouse system is ready. Marketing is ready. Forbes, Hoovers, and many more can participate for modern systems of sales on a huge level with these products that have a global market niche.
    It’s simple for the next group, all they have to do is invest and collect money from investments and profits.
    Problem is that investors want a track record and new ideas don’t have a track record of sales to project time lines of repayment.
    Solution is that an International Finance Company has agreed to pay an advance on products in warehouse receiving of retailers with my innovations in shelve able forms..that is they will pay us before the products sell, and/or are even on the shelves to be purchased. That’s how much they believe in the products and the places we will put them. 80% of the future profits with this system is more than what investors require with normal standard repayment systems..so when an investor invests in my plans they will be repaid faster than normal and it’s simply a one time investment and a one time lump sum repayment. $25,000 – $2,500,000 can be repaid with the 80% advance of profits within one year. The $25,000 can be done inside of 3 months. This amount will only make 50,000 products. But it’s a start, then the finance company will invest and we will go globally with them. They have connections and do business of this nature in 150+ Countries and have been in Business over 100 years.
    So where is the real money that will make the real products that the real retailers have said they want to sell?
    If and when you have the money to loan, we have the plans and the product lines that will sell Globally ready to be made and distributed and you will be repaid and have money earned for loaning us the money within one year!

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