MONTGOMERY, Alabama — The Alabama Senate is trying to give people a new way to raise money to start small businesses.
The Senate voted 31-0 Thursday for a “crowd funding” bill sponsored by Republican Sen. Arthur Orr of Decatur.
The legislation is backed by the Alabama Securities Commission. It would allow someone trying to start a small business in Alabama to use social media and advertising to find small investors who live in the state. It is limited to raising $1 million, and it is restricted to Alabama businesses and investors because of federal regulations.
The proposed legislation is an option for people trying to start small businesses in a tough credit market, Orr said.
His bill now goes to the House for consideration. House Speaker Mike Hubbard, R-Auburn, said Thursday he favors the bill because Alabama needs innovative ways to give small businesses access to capital. But he said he has not had a chance to gauge support in the House.
The director of the Alabama Securities Commission, Joe Borg, said enactment of the legislation would create a significant opportunity for Alabama entrepreneurs. “While investment in startup businesses has risk, the potential rewards in promoting new business and job formation in our local communities are invaluable,” Borg said.
By The Associated Press
on January 23, 2014 at 6:25 PM