The implementation of equity crowdfunding, a way for small businesses to raise capital, has been delayed again.
In my column last week, I said that the rules for launching the JOBS Act, which legalizes equity crowdfunding, would probably be finalized by this spring. That is not likely now.
According to David Marlett, founder of the National Crowdfunding Association, “Now we are hoping for by end of 2013.”
The trade association’s website, nlcfa.org, says that it is both an opportunity and a risk for investors to “invest money into or loan money to small entrepreneurial companies.”
The U.S. Securities and Exchange Commission is trying to minimize the risk as they wrestle with perfecting the rules.