The federal government is moving swiftly (by government standards) to make it easier for small businesses to raise capital in ways that haven’t been possible before.
Less than two months since the White House included the idea in its jobs package, the House is voting on bills this week to lift restrictions on crowdfunding and increase the amount of money companies can raise before having to register with the SEC. These proposals have the backing of House Republicans and the Obama Administration, camps that don’t agree on much legislation these days.
Securities laws designed to protect investors limit how much money businesses can raise, who they can raise it from, and how they can raise it, without going through the costly and cumbersome process of registering a public offering with the Securities and Exchange Commission. Those laws are part of the reason that businesses raising money on crowdfunding sites such as Kickstarter can’t sell equity.
To read the full, original article click on this link: Paving the Way for Crowdfunding - BusinessWeek
