Small businesses make your community home. They provide the character of Main Street, the tax base for needed infrastructure and vita; job opportunities. Many, however, are staving for capital and often find it difficult to obtain bank loans. It’s up to us, the community to invest.
What is Regulation Crowdfunding?
In 2012, President Barack Obama signed the Jumpstart Our Businesses Startups (JOBS) Act into law, creating federal crowdfunding regulations. Businesses at any stage can now raise up to $1,070,000 from accredited and unaccredited investors, as long as the raise is posted through a Securities and Exchange Commission (SEC) approved funding platform. Each entrepreneur has one year to complete the goal of the raise. Otherwise, funds are returned to investors.
Regulation Crowdfunding is a game changer for small business. Instead of having businesses rely on banks or accredited investors to meet their capital needs, entrepreneurs can now raise from customers, the community and fans around the globe.