Chamber Supports Crowdfunding Bill to Increase Opportunities for Businesses and Investors in NC
Yesterday, the N.C. Senate voted unanimously to pass an important pro-jobs bill on the Chamber’s 2016 Jobs Agenda that would broaden access to crowdfunding opportunities in North Carolina. By allowing individuals to invest up to $5,000 in a small business or start-up without registering the investment as a formal security, Senate Bill 481: Providing Access to Capital for Entrepreneurs and Small Businesses (NC PACES Act) provides a common sense way for businesses to access new capital while offering clear and balanced crowdfunding guidelines to protect investors and businesses alike. The NC Chamber strongly supports this legislation and we commend the Senate for acting decisively to move this issue forward.
Crowdfunding gives individuals more freedom to make their own investment choices. Traditional business investment opportunities have generally been offered through professional advisor firms that recommend investments based on a limited range of criteria. NC PACES would allow online “funding portals” to advertise new opportunities for investors and coordinate the transaction between the investor and issuer without providing investment advice, opening up a world of new investment opportunities for individuals – particularly middle-class North Carolinians – who typically do not have access to professional advisor services. In turn, these new investments will directly stimulate the growth of locally owned small businesses and startups in North Carolina.
NC PACES is a win-win for individual investors, small businesses and start-up companies. More than thirty states already have similar crowdfunding measures in place. In fact, most of these states used model legislation developed, but not yet passed, right here in North Carolina. It is time for our state to match the competitive crowdfunding measures already in place elsewhere by passing Senate Bill 481. The bill is currently in the House Finance Committee. We will continue to update you on this issue as it advances in the General Assembly.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber