Since November 2011, the U.S. House of Representatives and now the U.S. Senate have been debating proposed legislation that is anticipated to increase access to capital for small companies. The most hotly debated are the so-called “Crowdfunding Bills” that propose allowing small companies to raise capital online or through similar forms of media from non-accredited investors without violating U.S securities laws regarding general solicitations or advertising. Companies could raise up to $2 million (with the provision of audited financial statements) and individuals would be limited to investments of $10,000 or 10% of their annual income (whichever is less).
It appears legislation may come to a vote shortly, and Mission Markets is carefully studying the implications of these proposed new rules. We are excited to learn of the outcome, and we will keep our members and clients informed about how the changes will affect the impact investment and sustainability markets going forward. For a brief overview of the proposed legislation please refer to this summary.