North Carolina House Approves State Equity Crowdfunding Bill
Raleigh, North Carolina – North Carolina’s House of Representatives overwhelmingly passed the Jump-Start Our Business Start-Ups Act to jumpstart equity crowdfunding within the state. The House approved House Bill 680 by a vote of 103 to 1. The bill now moves to the state senate.
House Bill 680 allows certain North Carolina businesses to raise funds by the sale of securities under certain circumstances by exempting the businesses from the registration and filing requirements of the North Carolina securities law. The bill allow funds to be raised in $2,000 increments up to $1 million. Up to $2 million could be raised if a business goes through additional disclosures.
“Businesses need access to capital,” said State Rep. Tom Murry (R-Cary) who sponsored the bill. “That’s what this bill is about.” The crowdfunding provisions will expire July 1, 2017, with the expectation that the SEC would have implemented before then regulations to govern crowdfund investing under the federal JOBS Act.
Article by A. Brian Dengler, Member of CFIRA State Policy Working Group.