The recently signed Small Business Jobs Act promises that investors who put money into small companies will get full relief from capital-gains taxes on any returns.

But to get the break, investors have to act in the next three months.

That’s too short a time to identify and strike a deal with an up-and-coming business, say many angel investors and venture capitalists.

“We don’t write checks from a back-of-a-napkin plan,” says angel investor Dave Berkus, managing partner at Kodiak Ventures LP and at Berkus Technology Ventures LLC, both in Arcadia, Calif. “It takes three to five months on average to sign the check.”

In signing the legislation Monday, President Barack Obama—who has long promised to eliminate capital-gains taxes on small-business investments—estimated the measure would drive “capital to as many as one million small firms across America.”

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