Currently, many small businesses and historically underutilized businesses struggle to gain access to capital and small business loans. While Texas, like many other states, has recently legalized intrastate online crowdfunding to let businesses raise capital in exchange for equity or debt, experience in other states indicates that established small businesses—especially those in underdeveloped areas—struggle to attract investors and gain the financial and technical expertise necessary to fully utilize crowdfunding to raise capital.
What was the problem?
What is the solution?
Representative Eric Johnson has authored legislation to establish more flexible crowdfunding regulation requirements for a specific class of small business development entities that serve historically underfunded businesses. By allowing these businesses to leverage crowdfunding through less intrusive requirements, they can maximize their impact on small businesses and boost the economic impact around Texas.
Submitted by Representative Eric Johnson of Dallas, TX
Winner, 2015 New Ideas Challenge