House Passes Crowdfunding Bill

November 4th, 2011
Resources & Tools

This week, the House of Representatives passed several measures designed to aid small companies in raising capital. These measures include the Entrepreneur Access to Capital Act, which would create an SEC exemption for crowdfunding.  Under the proposed law, small companies could offer equity stakes in exchange for investments up to 1 million a year, indexed for inflation, or $2 million if the company provides certain financial information.

Additionally, the House has passed the Access to Capital for Job Creators Act, which would allow start-ups to solicit capital from accredited investors.

For more information, see the following articles:

WSJ Digital Network: “House Bills Aim to Help Start-ups Raise Money”

BusinessWeek – “U.S. House Approves Looser SEC Rules for Closely Held Firms”

USA Today – “House OKs bills to make it easier for small biz to raise capital”