Why small businesses need crowdfunding legislation

09/28/2011 | Washington Times, The

Legislation to allow the crowdfunding of small businesses, which has support in both parties, would help to ease the difficulty small firms have finding capital, writes Sherwood Neiss, founder of Startup Exemption. The bill, introduced by Rep. Patrick McHenry, R-N.C., would create a crowdfunding exemption to SEC regulations for companies raising up to $5 million. The government could take steps to protect investors, such as by requiring them to take a brief online course.

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