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AZ Crowdfunding Legislation Introduced

State capitol building in Phoenix AZ

State capitol building in Phoenix AZ

Sedona AZ (February 9, 2015) – Arizona State Representative Jeff Weninger and State Senator David Farnsworth introduced HB 2591 and SB 1450 to allow crowdfunding in Arizona. Crowdfunding allows individuals to finance a project or venture by raising money from a large number of people. 

The bill, if passed would allow donors to become equity stakeholders in a project or company, and allow for $10,000 per person and unlimited for qualified investors per offering. One million dollars per offering may be raised for companies or they may raise $2.5 million if they submit audited financials.

“If this passes in Arizona it could open up a way for many entrepreneurs to start their own businesses,” said Rep. Weninger, District 17. “Maybe you know someone who is developing the next innovative idea in technology, or maybe you have a friend down the street who wants to open a coffee shop? With this bill their dreams could be a reality.”

“The need for increased availability of funds for entrepreneurs is so vital, that we have sponsored identical bills in the House and Senate to ensure the prompt passage of legislation to allow for just that. This exciting concept brings together two things; the natural instinct most people have to save and invest and the abilities of entrepreneurs to create,” said Sen. Farnsworth, District 16. “Upon passage, SB 1450 and HB 2591 will incentivize saving and investing, and will stimulate job growth.”

“Modern technology has allowed the formation of a hyper-efficient peer-to-peer economy. Small businesses that want to participate in this economy need a hyper-efficient way to raise capital. By allowing hard-working Arizonans access to crowdfunding, the legislature is shepherding Arizona into the new economies of the future,” commented U. S. Congressman David Schweikert, AZ-6, about the newly introduced state house legislation.

The bill as passed would apply only to Arizona residents and companies. Transactions could be done on Internet portals or could be made in person-to-person meetings.

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For the best Arizona news and views, read www.SedonaEye.com daily!

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