Small businesses eye crowdfunding as alternative finance source

12/3/2012 | Reuters

Small businesses may have a new source of financing available, crowdfunding, as more companies enter this space. One example is EarlyShares.com, which provides financing to small businesses. Maurice Lopes was inspired to launch the site after having a hard time finding funding to expand his catering business. "Banks are not lending to small businesses to start or expand," he said. The Securities and Exchange Commission still has to finalize regulations pertaining to crowdfunding for more investors to be able to participate.

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