Equity capital for start-ups and growing small businesses has always been a problem. With the passage of the JOBS Act this was made easier but there are still some problems. While the final regulations have not been written, we know that general solicitation and adequate investor protections will not be in the final regulations.
To solve this problem Small Business California is sponsoring AB 2096. It allows general solicitation and many investor protections like a cap of $5000 for non-accredited investors, attorney fees for successful plaintiffs, and additional disclosure requirements.
AB 2096 passed the Assembly Banking and Finance Committee on an 11 to 0 vote. It is going to the Assembly Appropriations Committee today and it is on consent calendar. We have over 20 small business associations around the state supporting this measure. This bill will fill a real need for small businesses to raise up to $1 million in equity capital.
For more information go to www.leginfo.ca.gov
Small Business California
2311 Taraval Street
San Francisco, CA 94116