Alabama small businesses looking to raise money to support their growth might soon have an easier time doing just that.

A bill pre-filed by Sen. Arthur Orr, R-Decatur, would ease disclosure requirements on businesses selling up to $1 million worth of stock.

Usually when a business advertises to the public that it is raising capital through the sale of stock, regulators will require that the company file several disclosures and go through a set of procedures before making the sale. The bill would simplify that process for companies making relatively small equity placements.

“It would just open another avenue,” Orr said of the pre-filed legislation.

The bill includes a provision to protect individual investors, capping the amount they can spend to buy such stock at $5,000. Accredited investors recognized by the Alabama Securities Commission could spend more.

Similar rules have been authorized in Kansas and Georgia, Orr notes.