Vote Smart's Synopsis:

Vote to pass a bill that authorizes crowdfunding for small businesses.

Highlights:

• 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).

Full Bill Text

Full Bill Text