U.S. President Barack Obama has signed into law a bill making it easier for new businesses to raise money from investors.

Mr. Obama said at a White House signing ceremony Thursday that credit is tight in the current economy, making it almost impossible for new businesses to get started.

He called the new law a useful and important step, stressing that new businesses lead to new jobs.

The bill loosens regulations on small businesses becoming public. It allows entrepreneurs to raise up to $1 million from investors through the Internet.

The measure also allows existing small businesses to go public sooner.

Mr. Obama called on Republicans to make sure the Securities and Exchange Commission is properly funded so investors are rigorously protected against fraud.