HDR: Thumbs Up, Thumbs DownPosted by on November 04, 2011
Thumbs up, thumbs down
By The Record Editorial Staff
THUMBS UP to U.S. Rep. Patrick McHenry for crafting a bill to help business owners that House members couldn’t refuse. His legislation to allow small businesses and entrepreneurs to raise money by securing small contributions from many sources – called “crowdfunding” – cleared the full House by a vote of 407 to 17. That’s a margin almost unheard of, given the divisiveness in Congress these days. The legislation would allow companies to raise up to $2 million, with individuals limited to investments of $10,000 or 10 percent of their annual income. Now, the Securities and Exchange Commission prohibits crowdfunding. It’s a good bill that can provide smaller companies with much-needed start-up money or operating expenses with relatively little risk to investors. We urge the Senate to give the Entrepreneur Access to Capital Act the same support as the House.