In an op-ed published to The Digital Journal today, Maryland State Senate candidate Don Quinn presents his case for an intrastate crowdfunding exemption in his home state.
It goes without saying that each small business is more than just a single unit employer. Every small business depends on suppliers, transportation and logistics, marketing and advertising, and a host of other businesses to operate. The importance of the small business model is way too large to add on to the importance of crowdfunding, and why Maryland should consider it legislatively, suffice to say small business brings a lot more than direct investment into the economy.
In his analysis, he points to intrastate proposals generally being less restrictive than rules proposed by the SEC. In particular, he cites willingness to increase individual investor limits at the state level. He also points out that issuers at the state level are soliciting their potential customers for investment, and can in turn create an ecosystem where their biggest financial backers can support the company in ways beyond investment.
If Maryland considered and eventually passed an intrastate bill the state would join Georgia, Kansas, Washington, Alabama, Wisconsin and Michigan as states with passed crowdfunding exemptions. North Carolina, Alabama and Maine are all considering their own exemptions.