Crowdfuning bill clears assembly panel


Make text smaller Make text larger




Legislation sponsored by Assembly Republicans Parker Space and Alison Littell McHose that promotes economic growth and job creation today was approved by the Assembly Financial Institutions and Insurance Committee.

The bill will permit small New Jersey businesses to raise money through “crowdfunding” web portals.

“Investment capital is crucial for any start-up or growing business, and in today’s environment, conventional sources of money are few and far between. Introducing intra-state crowdfunding to New Jersey will provide companies with cost-effective access to the funds needed to expand and create more jobs,” said Space, R-Sussex, Warren and Morris.

The legislation provides exemptions from registration with the Bureau of Securities for companies organized in New Jersey that offer intrastate crowdfunding investment opportunities. The total investment can not exceed $1 million, and the investment from any single purchaser is capped at $5,000.

“Innovative businesses can use this new source of funding to open new ventures, expand existing operations, develop, manufacture and market new products here in New Jersey, and to gain an important competitive advantage over out-of-state rivals,” said McHose, R-Sussex, Warren and Morris. “Opening the spigot of this funding option benefits business, the state’s workers, and the economic climate.”

Web sites like Kickstarter and Peerbackers introduced crowdfunding to the market, but those donation-based sites are inadequate for raising funds for an ambitious business project. State-sponsored equity crowdfunding initiatives have proven successful in a handful of states, including Georgia and Kansas.

“Our legislation helps local investors connect with in-state businesses. They can visit the facilities, meet key personnel, and take pride in their investment,” said Space, the owner and operator of Space Farms Museum and Zoo.

This legislation is a version of the federal Jumpstart Our Business Startups Act, commonly referred to as the JOBS Act. It passed Congress with bipartisan support and was signed into law in 2012.

Make text smaller Make text larger

Comments

Pool Rules



MUST READ NEWS

Shanghai Circus coming to Morristown
Amazing athletes defy the laws of gravity when the New Shanghai Circus comes to Mayo Performing Arts Center on Saturday, March...
Read more »
Image

Marc Cohn to feature special guests
MORRISTOWN — Singer-songwriter Marc Cohn, best known for his megahit "Walking in Memphis," performs at Mayo Performing Arts Center on Friday, March 16 at 8 p.m.
Read more »
Image

The Chieftains coming to Mayo Center
Six-time Grammy Award winners The Chieftains perform their signature brand of Celtic music Wednesday, March 14, at 7:30 p.m.
Read more »
Image

Sing along with The Muppet Movie
Sing Along with The Muppet Movie comes to MPAC Sunday, March 11 at 2 p.m.
Tickets are $20-$30.
This is a...

Read more »
Image

VIDEOS



* indicates required
Community Newspapers


MOST READ

Local News
Impact 100 reveals grant process
  • Feb 15, 2018
Local News
Center plans Narcan training
  • Feb 15, 2018
Entertainment
The Chieftains coming to Mayo Center
  • Feb 16, 2018
Entertainment
Sing along with The Muppet Movie
  • Feb 16, 2018

MOST COMMENTED



Weather in Lafayette, NJ