North Carolina residents might be the next state to enjoy retail equity crowdfunding, thanks to a new bill that was cleared by the Senate Commerce Committee on Wednesday (July 16th). According to the News Observer, the bill, H.B. 680, which last year was passed by the House, is set to move to the Senate Finance Committee.
Rep. Tom Murry, a Morrisville republican and bill sponsor, stated “The bill before you has been used as a model in 14 or 15 other states. Crowdfunding has taken the nation by storm.”
The H.B. 680 enables businesses to raise up to $1 million per year from investors who are able to invest up to $2,000 each. Businesses are also allowed to raise $2 million per year if they undergo an audit. Accredited investors, wealthy individuals who have an annual income of at least $200,000 or a net worth of $1 million, wouldn’t face the $2,000 limit on their investments. Sharing his excitement about the bill being passed to the state’s Senate Finance Committee, president and CEO of N.C. Technology Association, Brooks Raiford, wrote, “North Carolina has a reputation as a technology center and a great place to start a business, and the N.C. Jobs Act will make it even better.” Triangle angel investor and advisor to startups, Mark Easley added, “This is absolutely going to become a law. I don’t see any major issues.” Although the bill has been endorsed by the Senate, a new section has been designed to boost loans to small businesses in the state’s rural and distressed counties that wasn’t considered by the House. This section builds up the New Market’s Tax Credit Program that congress established in 2000.