Earlier today (June 20, 2016) the North Carolina Senate passed legislation (SB 481) that would allow small North Carolina companies to raise up to $2 million from non-accredited and accredited investors. Â The bill now marches over to the House Committee on Finance. Â The bill is similar to a previous version that stalled out in the legislative process. Â The proposal allows issuers to accept up to $5000 from any single purchaser who is not accredited. For raises over $1 million and up to $2 million, issuers must provide an audit or a review that meets generally accepted accounting principles.
The intrastate crowdfunding exemption comes just as the federal retail crowdfunding exemption, Title III of the JOBS Act, has just commenced. Â Recently an update to Title III, also called Reg CF, passed the House Financial Services Committee. Â The bill now allows special purpose vehicles but a portion of the bill that would have increased the exemption to $5 million was pulled from final text. The cap on Reg CF is for $1 million.
If the law passes North Carolina will join several dozen other states that have enacted their own crowdfunding exemption. Â Texas is, perhaps, the most active state in regards to their intrastate exemption having. A recent report stated Texas had initiated 35 crowdfunding offers under their state rules.