| Crowdfunding Bill Becomes Law Today RICHMOND, VA -
Virginia Beach Delegate Scott Taylor's crowdfunding bill becomes law today all across Virginia. "Crowdfunding is the future for access to capital for small businesses, creating new jobs, and allowing all Virginians to invest in Virginia companies," said Taylor. Numerous companies are set to take advantage of the new law. VeteranCrowd, a crowdfunding portal that seeks to fund veteran-led companies, is excited about the new law's potential. VeteranCrowd CEO Bob Louthan asserts, "This legislation is game-changing for our veteran entrepreneur clients in the commonwealth, who will now have additional options for raising growth capital from a broader audience of individual investors." Nicole Riley, state director of the National Federation of Independent Business, said, "This legislation is a win-win for Virginia small businesses and investors. It gives entrepreneurs another tool to raise startup money, provides established small-business owners another financing option to expand and gives investors in Virginia another incentive to help more new and small businesses succeed in the commonwealth."
House Bill 1360 creates an exemption from some of the requirements of the Securities Act for certain businesses to be able to more easily take advantage of the benefits of crowdfunding. The issuer of the security must be a for-profit business entity formed under the laws of the Commonwealth. The bill becomes law July 1, 2015.
The exemption would apply to only the first $2 million raised per year and the business could not raise more than $10,000 from any single purchaser unless the purchaser is an accredited investor as defined by 17 C.F.R. § 230.501.
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