LEGISLATURE ENACTS “CROWD INVESTING” MEASURE

President Alfond’s bill opens door for more Mainers to invest in local start-ups

AUGUSTA—In a unanimous vote of 35 – 0, the Legislature gave final approval to a measure allowing Maine businesses to sell securities as a means to raise start-up capital while maintaining Maine’s strong consumer and investor protection laws.

“Maine is a great place to start a business and, with this bill, we have a unique opportunity to support entrepreneurs, increase investing opportunities for more Maine people, and be a national leader in turning ideas into jobs,” said President Alfond. “By allowing and encouraging small-scale investment in companies, Mainers tell the world, if you have a vision and a plan, we want to support you and help your business grow.”

Under the proposed measure, any Maine-based business interested in crowd investing can register with the Office of Securities and sell small amounts of equity to individual investors, with a maximum investment of $5,000 per person. The business would set a target amount to raise, of no more than $1 million, and a hard deadline to raise it by. If the business owners do not raise the target amount by the set deadline, all of the contributed money is returned to the investors.

President Alfond added, “This is a great small business bill, and I encourage the Governor to join the Legislature is supporting and growing Maine’s start-up culture.”

The House passed the bill, LD 1512, “An Act To Increase Funding for Start-ups,” in a vote of 129—1 last week. It will now be sent to Governor LePage.

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