New Year Brings New Investment Opportunities for Mainers

Crowdfunding law expands access to capital for Maine business

AUGUSTA –As of January 1st, Maine businesses now have an additional avenue to access capital through crowdfunding.

The new law, sponsored by Democratic Leader Justin Alfond, allows any Maine-based business interested in crowd-investing to sell small amounts of equity to individual investors, with a maximum investment of $5,000 per person.

“Maine is a small business state. Expanding ways to raise money gives more opportunities for our local entrepreneurs to strengthen their success and viability,” said Senator Alfond. “This will allow entrepreneurs to jump start and grow their ideas in to successful businesses.”

According to the Maine Office of Securities, since the new year, there is a growing list of businesses waiting to use the new crowdfunding tool.

Alfond added, “Crowdfunding gives more Mainers access and opportunity to invest in our local economy and support members of our community.”

Public law 452 went into effect in 2014 without Governor LePage’s signature. In August, a public hearing was held about a “rule making” change to reduce red tape and simplify the application process. The Governor’s office and Attorney General’s office have since adopted the rule change and the streamlined process is in effect.