Crowdfunding and Capital Access: A New Framework is in the Works and the SEC Must Get It Right
Capital Access and Outdated Regulation
SBE Council is leading an effort to modernize outdated securities laws to help boost the availability of capital for small businesses. Working with our members, we are educating lawmakers and regulators about crowdfund investingﾠand why it is important to developﾠa new regulatory framework that will help increase the pool of available capital for entrepreneurs.
Help us reform outdated rules that impede entrepreneurship, and place the U.S. at a competitive disadvantage. Help make crowdfund investing legal!ﾠ
Access to Capital Important to You? Help Make Crowdfund Investing Legal - Sign the Petition Today!
UPDATE on Crowdfunding Legislation
President Obamaﾠannounced his support ofﾠcrowdfunding inﾠhisﾠjobs plan. (Please find that information on page 4 of the White House document here.)ﾠ Karen Kerrigan also praised the President's initiative in a recent press release here.
Neiss Testifies before U.S. House on Crowdfunding on Sept. 15.
Read Woodie Neiss's Op-edﾠpublished in The Washington Times,
House Finance Committee advances crowdfunding billﾠ(H.R. 2930) on October 27, 2011.
The White House issuesﾠthis Statement of Administration Policyﾠin support of H.R. 2930.ﾠ
KEY VOTE: SBE Council KEY VOTES H.R. 2930, the "Entrepreneurs Access to Capital Act."
House Passes crowdfunding bill, H.R. 2930, 407-17 on November 2!ﾠ
Momentum is on our side, but we need the support of entrepreneurs to help us push H.R. 2930, the "Entrepreneurs Access to Capital Act" over the finish line and on to President Obama's desk.ﾠﾠ(Read about House passage of H.R. 2930 in this BizJournals.com article, which also quotes SBE Council President & CEO Karen Kerrigan about the prospects for Senate passage.)
SBE Council member and Startup Exemption co-founder Jason Bestﾠappeared on PBS's Nightly Business Reportwhere he discussed the benefits of H.R. 2930, and how it will unleash much needed capital for small businesses across the United States.
November 9, 2011: Senator Scott Brown (R-Mass.) introduces a crowd funding bill, "Democratizing Access to Capital Act" (S.1791) in the U.S. Senate. Senator Brown published this piece "Creating a National of Venture Capitalists through Crowdfunding" in WIRED Magazine.
November 17 Rally in Washington: "Rally for Capital" to Urge Senate Passage of House-Backed Crowdfunding Bill.ﾠ Please JOIN US!
Video highlights of "Rally for Capital" as captured by House Financial Services Committeeﾠstaff.
Obama's "Start-up Legislative Agenda" Includes Crowdfunding: On January 31, 2012 President Obama sent his start-up legislative agenda to Congress which includes "a national framework that allows entrepreneurs and small businesses to raise capital through crowdfunding.'"
A Few FeburaryﾠMedia Stories highlighting our efforts and progress:
A CNBC.com story on February 14 reported on the power of crowdfunding and the status of legislation in Washington.ﾠ In the piece, SBE Council president & CEO Karen Kerrigan predicts that if a Senate bill hits the floor it has a very good chance at passage.
A FoxBusiness.com story on February 16, which quotes Kerrigan and Woodie Neiss, explains crowdfunding, its widespread appeal, but notes the fierce opposition by state regulators.
This Courier-Journal article (February 19) looks at how one Louisville-based entrepreneur saw a need in the marketplace and raised the funding she needed on Kickstarter, but notes the limitations of gift-based crowdfunding.
LEGALIZE CROWDFUND INVESTING:ﾠWoodie Neiss has launched a site where entrepreneurs can help supportﾠlegislative efforts on Capitol Hill.ﾠ LegalizeCrowdfunding.org is also meant to demonstrate the amount of jobs that could be created if entrepreneurs had access to the capital they need to grow.ﾠADD YOUR IMPACT: You can click on your state, record your capital needs and how many jobs you would create if such capital was available.
U.S. Senate Movement:ﾠOn February 28, U.S. Senate Majority Leader said he would move forward on the bipartisan capital formation bills that passed the U.S. House.ﾠ Read the Portfolio.com update on this development here.ﾠ Senate Banking Committee will host hearingsﾠthe week of March 5.
Small BusinessﾠCoalition Letter to Senate Leaders: The nation's most influential groups representing small business owners and entrepreneurs deliver a letter to Senate leaders urging passage of crowdfunding legislation.ﾠ Read the media release about the letter here.
U.S. House to consider the JOBS Act (H.R. 3606) - a comprehensive legislative package that includes H.R. 2930, the crowdfund investing legislation.ﾠ (This meansﾠH.R. 2930ﾠwill be voted on again, alongsideﾠfive other capital formation measures.) SBE Council sent a KEY VOTE letter to all Members of the U.S. House to let them know SBE Council will include this vote in its forthcoming Ratings of the 112th Congress.
U.S. Senate Banking Committee holds Round II of its capital access hearings on March 6.ﾠ Crowdfundingﾠ receives a balanced hearing.
JOBS Act Passes the House!ﾠ U.S. House passes the JOBS Act on March 9 by a 390-23 margin.ﾠ Read SBE Council's media release lauding House passage on FOXBusiness.com, as well as a round-up of statements compiled by The Washington Post.ﾠ Crowdsourcing.org looks at "what's next" in the U.S. Senate.
U.S. Senate Up Next!:ﾠSenate to vote on JOBS Act week of March 19. SBE Council support letter.ﾠﾠ Despite fierce opposition from some Democrats, regulators and the generally uninformed, SBE Council President & CEO Karen Kerrigan remains optimistic about U.S. Senate passage.ﾠ (See March 16 Portfolio.com article here.)
U.S. Senate Action: On March 20, SBE Council and small business allies send a coalition letter to the U.S. Senate urging a yes vote on H.R. 3606.
Senate Passes JOBS Act! On March 22, the U.S. Senate overwhelmingly passes the JOBS Act (73-26). Read SBE Council's media statement here.ﾠ ﾠPortfolio.com reported on Senate passage, which includes observations from SBE Council President & CEO Karen Kerrigan.
How We Did It: On March 22, The Business Journals Washington Bureau Chief Kent Hoover wrote a great piece on how the JOBS Act, and specifically the crowdfunding measure, overcame all odds against it.
JOBS Act Goes Back to House:ﾠ In a letter to the full House on March 27, SBE Council President & CEO Karen Kerrigan urges Members ﾠto vote for Senate-Amended JOBS Act.
Senate-Amended JOBS Act Passes House: On March 27, the U.S. House passes the Senate-amended JOBS Act (380-41).ﾠ President Obama will sign the legislation on April 5, 2012.
President Obama Signs JOBS Act! SBE Council statement.ﾠ In Rose Garden ceremony at the White House, attended by SBE Council President & CEO Karen Kerrigan and members/crowdfund investing "fathers" Woodie Neiss and Jason Best, President Obama signed the JOBS Act, which makes crowdfund investing legal.
Next Steps: The rulemaking process. SEC Seeks Public Comment Prior to JOBS Act Rulemaking