Legislators push for a new bill that would make it easier for North Carolina businesses to expand and grow.
As the Securities and Exchange Commission continues to finalize the rules of the JOBS Act, federal legislation which enables emerging companies to utilize equity crowdfunding, North Carolina is considering its own set of rules to expand funding opportunities for businesses.
The proposal would allow a company to raise $2 million through equity crowdfunding over a 12-month period. Investors would be able to invest through equity crowdfunding, though those who do not meet a certain income threshold would be limited to invest only up to $5,000 per company annually.
Senate Bill 481, known as the North Carolina Providing Access to Capital for Entrepreneurs and Small Business Act, was approved in Senate Judiciary I Committee on April 14. The bill will move to the Senate Finance Committee before being submitted to the floor for a vote. Many lawmakers are hoping for a swift approval, which could help many emerging and existing businesses in North Carolina.
“Senate Bill 481 addresses two top priorities [for small business owners]…access to capital and reducing the regulatory burdens of gaining the capital needed to add and create more jobs, increase inventory and expand their businesses,” says NFIB/North Carolina state director Gregg Thompson.
“Crowdfunding has been very successful in other states and Gov. McCrory and his administration feel it is crucial for it to be one of the tools in the economic development toolbox in North Carolina. NFIB strongly supports the legislation and is working hard to get it passed.”
