Last year the U.S. House passed a crowdfunding bill (H.R. 2930 – Entrepreneur Access to Capital Act) but it has never made it to a vote in the Senate. That looks set to change.
Yesterday House Majority Leader Eric Cantor announced that he would bring up and pass a jobs bill in the house next week. According to this article in The Hill it will also garner support from the Democrats. The new jobs bill is actually six bills one of which is H.R. 2930. As Forbes reported earlier in the week Senate Majority leader Harry Reid now supports H.R. 2930. Many of the other bills are also popular with both sides so it looks like we may well have a new crowdfunding law possibly as soon as later this month.
To recap, H.R. 2930 has three main components that will effect how small businesses are able to raise capital:
- A $10,000 limit per investor (or 10 percent of annual income, whichever is less).
- A cap on the amount a company can raise of $1 million per offering (and up to $2 million if audited financial statements are provided).
- No limit on the number of accredited or unaccredited investors.