Secretary of State’s Office to Introduce Crowdfunding Legislation
"A lot of people are familiar with crowdfunding from Kickstarter or Indiegogo, and those are donation based sites to raise money," said Deputy Secretary of State Karen Wheeler. "What we're doing with crowdfunding, it is now an equity-based provision in that businesses within our state, small businesses that are brand new and say they cannot qualify for a loan or a grant, this is a way for them to raise money from local investors who will have a say and a part in this company."
Secretary of State Ed Murray says banking rules and regulations have made it hard for youth to get loans to start and grow small businesses.
"The ability for bankers to establish relationships, with especially new business men and women, is extremely restricted and it has resulted in a lack of alternatives for our youth to get into business," said Murray. "And so I'm really excited about crowdfunding and it being utilized as a real viable successful option for young business men and women."
"The feedback we're getting is very positive, people are excited about this," said Wheeler. "It's a new way for small businesses, these young entrepreneurs as Secretary Murray said, to raise money to get their small businesses going."
Wheeler says they plan to go before the Joint Corporations Committee this fall and have a bill ready to roll for the 2016 budget session.