Cheyenne, WY, March 26, 2012 --(PR.com
)-- Legislation to help startup companies raise capital via the Internet won easy passage in the Senate Thursday and since President Barack Obama supports the measure, it appears that Conzortia Business Funding, Inc.'s crowdfunding site, Conzortia.com, will be legal & operational in a matter days, upon House reconciliation and the President's signature.
In referring to the economy and job growth, Sen. Pat Toomey, R-Pa., said this "might be the most pro-growth measure that this body will consider."
The measure will allow small businesses to use advertisements to solicit investors, allow up to 2,000 shareholders that a company can have before it must register with the SEC, and allow smaller companies to publicly sell up to $50 million in shares, without filing some SEC paperwork. It encourages the practice of "crowdfunding," in which the Internet is used to raise capital from a large number of smaller investors. The measure puts dollar limits on contributions from individual investors based upon their annual income.
Crowdfunding was previously banned for stock sales because it was not legal to openly advertise and offer securities to the public without SEC registration.
"It's a great day for public posterity," said Robert Dobyns, Founder & CEO of Conzortia Business Funding, Inc. "This represents a paradigm shift in the way that small businesses get funded AND lets the small investor have a real stake in companies that have exponential growth potential."
Meanwhile, the website at Conzortia.com sits dormant with a "coming soon" note attached.
"We are currently accepting investor & business registrations pending final approval," Dobyns stressed. "There are currently $1.2 million in offers awaiting launch at Conzortia and lots of information on what crowdfunding is all about."
And as Capitol Hill completes its final tounches, Dobyns waits. And the Conzortia tech team waits. And America waits for the momentous day to arrive.