Maine Senate OKs crowdfunding for businesses
The Maine Senate has given initial approval to a bill that would allow Maine-based startup companies to raise up to $1 million by selling shares to Maine residents.
The Portland Press Herald reported that LD 1512 will now go to the House for initial approval before returning to the Senate for an enactment vote. The newspaper reported the bill would allow companies to advertise publicly on crowdfunding sites like Wefunder.com and raise no more than $5,000 per year from any single investor. The federal government passed a similar measure in April 2012, but rules for companies to access capital from small investors are still in a draft form from the Securities and Exchange Commission. That law made it legal for private companies to sell shares to investors without federal “accredited investor” status.
The state proposal would govern investments in Maine companies from Maine residents while investments from outside of the state or Maine investors putting money in companies based elsewhere are governed by the federal law, called the Jumpstart Our Business Startups Act, or JOBS Act.
Editor's note: This story was updated from its original version to reflect that the bill's amendment lowered the limit on the amount that could be raised from $2 million to $1 million.
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