The Senate Commerce Committee advanced bipartisan 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.
Legislation sponsored by Senator Joe Kyrillos would boost small business growth by allowing people to engage in online crowdfunding in New Jersey. (©iStock)
The bill, S-712/A-2073, would allow people to engage in online crowdfunding within the state of New Jersey.
“At a time when conventional sources of financing are scarce, this legislation 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 Kyrillos’ legislation will allow 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 will 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. “Entrepreneurs in New Jersey deserve the same opportunities to thrive as innovators in other states who have turned several thousand dollars in online crowdfunding investments into thriving businesses with dozens of employees.”
This legislation has already passed the state Assembly and is headed to the full Senate for final legislative approval. Other states such as Georgia, North Carolina, Kansas and Wisconsin have already taken action on similar measures.
The legislation is part of the Senate Republican’s recently unveiled 36-bill job creation and economic growth package.