The state of North Carolina appears to be ready to get their own investment crowdfunding exemption. It has taken several attempts by advocates and certain legislators but it seems the stars finally aligned as the most recent initiative was approved by the North Carolina Senate.
An Act to Enact the North Carolina Providing Access to Capital for Entrepreneurs and Small Business
The North Carolina law will allow NC-based companies to raise up to $2 million, thus doubling the current Reg CF/Title III exemption. Investors may purchase securities up to $5000 – unless they are accredited and then it is unlimited. Offers may list on NC based web sites that are approved by state Administrators.
One of the bill co-sponsors, Senator Tamara Barringer, commented on the bill;
“The NC PACES Act has passed the North Carolina House and Senate unanimously, paving the way for small businesses to raise much needed capital, providing jobs and opportunities for North Carolinians.”
North Carolina Governor McCrory is expected to sign the bill into law very soon. But that does not mean NC citizens will be able to move immediately as the Securities Division of the North Carolina Secretary of State’s office will need to write up the exact rules – something that may take a couple of months.
Anthony Zeoli, a Senior Contributor for Crowdfund Insider and an expert on intrastate crowdfunding exemptions stated;
“I am extremely excited to see the North Carolina has finally passed intrastate crowdfunding. I know Mark Easley and the rest of the NC PACES team has fought long and hard for this victory and I am certain it will be to the benefit of all small and start-up businesses in the state. Their team made this a reality and I believe they have the drive and vision to make it truly successful in North Carolina.”
The bill is embedded below.