Tandem bills legalizing crowdfunding have been introduced in the state of Arizona. Yesterday HB 2591 and SB 1450 were introduced to begin the process of allowing investment crowdfunding in amounts up to $2.5 million. According to the draft rules, companies that have not undergone an audit, nor provided an “opinion letter”, issuers may raise a maximum of $1 million – as it stands now.
For investors who are not considered accredited, they are limited to a $10,000 investment cap on offers. Accredited investors are subjected to an investment cap.
Of course all of this can change during the committee review process and once a final bill has been completed it must be signed into law by Governor Doug Ducey.
As with other states pushing forward with state exemptions these policy initiatives are viewed as beneficial in facilitating capital for small enterprises.
Both bills found ample support from state politicians to sponsor the legislation.
Arizona Senator David Farnsworth, a backer of the bill, was quoted at KTAR saying a new law would encourage people to invest in local companies;
“This give people who would ordinarily not be investing the opportunity to invest in something they believe in; something that’s close to home,” Farnsworth said.
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