Job-creating legislation originally introduced in 2013 by Senator Joe Kyrillos to allow New Jersey residents to invest in New Jersey-based companies, startups, innovators and entrepreneurs was signed into law today. The law, formerly S-712/A-2073, which garnered bipartisan sponsorship from Senate Democrats Cruz-Perez and Lesniak, as well as Assembly Democrats Angel Fuentes and Upendra Chivukula, allows people to engage in online crowdfunding within the state of New Jersey.
“At a time when conventional sources of financing are scarce, this new law will help New Jersey’s innovators seek private capital from the investing public to develop their products or services right here in our state,” Kyrillos said. “Crowdfunding will level the playing field for future employers, giving those without access to Wall Street a chance to gain startup capital quickly and grow their business with the support of the community.”
— Senator Joe Kyrillos (@joekyrillos) November 9, 2015
Senator Kyrillos’ law allows New Jersey-based entrepreneurs to seek up to $1 million in private investment in increments of up to $5,000 from unaccredited investors residing in New Jersey. It does not cost a single tax dollar.
Senator Kyrillos noted that more than 90 percent of New Jersey employers are small businesses owners, employing more than half of the state’s private-sector workforce.
“We grow jobs and opportunities for people here by eliminating opportunity-crushing regulations and antiquated roadblocks to ingenuity and economic revitalization principally driven by our state’s small businesses,” Kyrillos said. “Unaccredited investors have always been able to risk capital in the public markets and now they can as well in private companies, small businesses, and entrepreneurial start-ups.”
This legislation is part of the Senate Republican’s 36-bill package to jumpstart job creation and economic growth without costing taxpayers extra money. So far, 15 of the bills have garnered Senate Democrat sponsorship; 12 have garnered Assembly Democrat sponsorship; the Senate has advanced or fully passed 11 of them and the Assembly has advanced or passed a number of them as well. A full list of bills and their statuses is attached and here.