A bill has been passed by Virginia’s House of Delegates and means that more can benefit from crowdfunding and peer to peer lending sites.
The bill, founded by Delegate Scott Taylor, creates exemptions from the Securities Act that currently affects businesses in Virginia. The stipulations of this act meant that, before the bill was passed, some businesses in Virginia could not benefit from money raised by investors on crowdfunding sites. The exemption would only apply to the first $2 million raised per year, and means that the business could not raise more than $10,000 from any single purchaser unless the purchaser was an accredited investor.
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Around the point of the bill’s passing, Taylor stated that “This legislation will make it easier for Virginians to invest in promising Virginia startups, creating a culture of entrepreneurship and more good-paying jobs.” Backing him up was Nicole Riley, state director of the National Federation of Independent Business, who stated that “This legislation is a win-win for Virginia small businesses and investors.”
Already, the many benefits of crowdfunding in America have made themselves known amongst the residents of Virginia. Entrepreneur Michelle Logan told of how crowdfunding helped her to raise $20,000 in a mere three weeks, for a product intended to help women with breast cancer. With achievements like these being made already, the passing of this bill is guaranteed to bring about many more things to celebrate in the Virginia community.