Rep. McHenry Introduces Crowdfunding Act
Rep. Patrick McHenry (NC-10)
Congressman Patrick McHenry introduced the Entrepreneur Access to Capital Act, H.R. 2930. The legislation represents a point of agreement between Republicans and the White House regarding regulatory reform in the President’s newest jobs bill. The bill would provide a crowdfunding exemption to SEC registration requirements for firms raising up to $5 million, with individual investments limited to $10,000 or 10 percent of an investor’s income. The exemption would erase limits on the number of investors until the first $5 million of capital is raised. This exemption provides smaller investors an opportunity to support startups that is currently not an option under SEC regulation.
Rep. McHenry released the following statement:
“Over two years into a sluggish economic recovery, it’s clear that we need new ideas to help provide small businesses and entrepreneurs the ability to create jobs,” said Congressman McHenry. “Due to the difficulty obtaining capital in today’s economy, most business ideas never make it past the dinner table. This legislation will connect entrepreneurs with everyday investors to help get their businesses off the ground.”