Scott Schroeder needs financing for his small electronics assembly business to hire more workers amid a recent surge in demand for its services. His bank recently refused to increase the Oregon company’s credit line, forcing him to consider selling equity in his company to dozens, and possibly hundreds, of investors online.
Online solicitation of unsophisticated investors currently is barred under federal securities law. But Congress in April passed a new law that would allow “equity crowdfunding,” allowing entrepreneurs like Mr. Schroeder to more easily get money for their businesses.
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