See How Your Politicians Voted
Title: Authorizes Crowdfunding for Small Businesses
Vote Smart's Synopsis:
Vote to pass a bill that authorizes crowdfunding for small businesses.
- Establishes crowdfunding exemptions for the following instances (Sec. 2):
- Transactions involving the issuance of securities that aggregate $1 million or less annually;
- If the issuer provides potential investors with audited financial statements of $2 million or less; or
- When individual investments in the securities are less than $10,000 per year or 10 percent of the investor's annual income, whichever amount is smaller.
- Establishes crowdfunding exemption requirements for intermediaries and for security issuers who do not use intermediaries (Sec. 2).
- Specifies that a securities issuer or intermediary may rely on certifications provided by an investor to verify the investor's income (Sec. 2).
- Prohibits investors from selling securities for a 1-year period beginning on the date of purchase, unless the securities are sold to (Sec. 2):
- The issuer of such securities; or
- An accredited investor.
- Specifies that intermediaries are not required to register as a broker (Sec. 2).