Georgia and Kansas may have led the way in Crowdfunding and Securities Exemptions (CASE) legislation, but many other states are quickly seeing the advantages and passing similar legislation of their own.
After all, crowdfunding promises job creation and economic improvement at the state level. And because any astute politician can see the logic in keeping jobs and business taxes in state.
Crowdfunding for Investors
Who Else In On Board?
In October, Wisconsin passed crowdfunding legislation unanimously. Unlike Georgia, Wisconsin has approved a limit of $2 million for equity investment in private placement offerings during a single year; double that of Georgia. The bill, “2013 Wisconsin Act 52” also creates a new kind of investor, called a “certified investor” which creates a separate class of investor and “middle tier” investor in addition to non-accredited and accredited investors in other states. Wisconsin clearly has high hopes in the promise of crowdfunding.
CrowdfundingInsider.com reports that Wisconsin Representative David Craig, who first proposed the bill, stated: “In signing this bill into law Governor Walker said loud and clear, ‘Wisconsin is open for business.’ No longer will our state watch as other states lead the way in opening up capital access to our small businesses, and no longer will our state treat its job creators like they are located on Wall Street instead of Main Street.”
The Primary Crowdfunding States
And Wisconsin is not the only state enabling equity crowdfunding to help small business. North Carolina’s bill has gone into the legislature and could be implemented within the first quarter of this year. Alabama, South Carolina, Florida, Michigan, Washington State and New Jersey are all expected to propose or vote on legislation in 2014.
Implications for Small Business Owners
More statewide non-traditional options to access investment capital are coming on line monthly, to provide more access to growth capital from a wider pool of potential investors than ever before. Still, it’s up to individual business owners to learn how to take advantage of these new opportunities by understanding and embracing the basic fundamental elements of a viable business plan that investors will fund. We applaud the states that have taken an early leadership role in providing new opportunities for the businesses in their states.