WASHINGTON, DC—Today, the American Sustainable Business Council (ASBC) applauded the Senate for passing the CROWDFUND Act as an amendment to the Reopening American Capital Markets to Emerging Growth Companies Act of 2011 (HR 3606). In a letter to the Senate last week, ASBC endorsed the legislation as a way to help small businesses expand through new avenues to capital and to add investor protections such as limiting the scale of investment, encouraging full financial disclosure, and requiring all deals to go through financial portals registered with the SEC.
ASBC also released the following quotes from small business leaders:
“The Senate took an important and responsible step today in encouraging small businesses -- the nation’s job-generators -- to expand,” said Frank Knapp Jr., President of the South Carolina Small Business Chamber of Commerce and Vice Chair of the American Sustainable Business Council. “Under the CROWDFUND Act, consumers can invest in local businesses through a model that minimizes the possibility of fraud. In contrast, the House version doesn’t contain the proper level of oversight, putting both small business owners and consumers at risk.”
“A successful crowdfunding model doesn’t have to be a choice between too little access to money and too much fraud,” said David Brodwin, co-founder of ASBC. “The Senate bill strikes the right balance between proper oversight and free markets. At a time when banks are balking at lending to small businesses, the CROWDFUND Act provides a 21st century way to meet capital needs and help them grow.”
To read the ASBC’s letter encouraging the Senate to pass the CROWDFUND Act, please go to: http://asbcouncil.org/crowdfunding-statement
The American Sustainable Business Council is a growing coalition of business networks representing over 100,000 companies and 200,000 business leaders. ASBC advocates for public policies that meet the realities of the 21st century global economy.