The Entrepreneur'sRESOURCE

Explore the Resource Center to find resources.  Designed with entrepreneurs in mind, our resource center allows you to find materials to grow great ideas.

SEC Seeking Input on Creation of Equity-Based Crowdfunding

Mark Marich

The Securities and Exchange Commission is looking for feedback from entrepreneurs and small business owners on a proposed rule to implement equity-based crowdfunding as required by the Jumpstart Our Business Startup (JOBS) Act. While the proposed rule will allow a startup or small business to offer an equity stake in exchange for an investment, it imposes limitations, reporting and record-keeping requirements on entities seeking to raise capital through crowdfunding. The rule also imposes registration, reporting and recordkeeping requirements on the website portals that small businesses will use for crowdfunding transactions.  

The SEC is hoping to strike the right balance in protecting individual investors while not being so burdensome for entrepreneurs. Entrepreneurs, small business owners and others have until February 3, 2014, to provide formal comment

This and other opportunities for entrepreneurs and small business owners to comment on federal regulations are available as part of the Small Biz Reg Watch from the U.S. House Committee on Small Business. 

comments powered by Disqus

Search for Resources

Stay Connected

Email Newsletter Signup

Want to get connected? Sign up to receive regular news, polls and updates from The Kauffman Foundation.

Email Newsletters

Want to be up-to-date with the latest news and updates from To subscribe, just give us your email address below; you'll choose which e-newsletters you'd like to receive on the next screen.