11/17/2015 02:06 PM EST
Maine Securities Administrator Judith Shaw is highlighting Maine's seed capital formation registration rule, informally known as Fund-ME, and encouraging business owners and those thinking about starting a company to contact the Office of Securities to learn more. The rule, which took effect January 1, 2015, provides a streamlined avenue for small businesses to raise capital while still providing protections for investors.
Fund-ME allows Maine businesses to raise up to $1 million, and generally permits individuals to invest up to $5,000 in each business during a 12-month period. Small businesses and entrepreneurs taking advantage of this new method for raising capital would provide offering documents to potential investors, including a subscription agreement and a completed Fund-ME offering circular.
"Consumers may be familiar with crowdfunding websites. Maine's new rule takes that basic concept of social funding and allows everyday investors to participate directly in the development of a Maine business," Administrator Shaw said.
Crowdfunding legislation has also been enacted at the federal level. The JOBS Act was signed into law in April of 2012 and authorized the Securities and Exchange Commission (SEC) to write federal rules for crowdfunding. Those rules were recently finalized, but Maine and other states moved forward in the interim. Maine's rule should provide a viable alternative for businesses that might not be interested in the federal approach.
Shaw noted that Maine's crowdfunding opportunity works differently than the approach taken by many other states, as it allows businesses to raise money from investors outside of Maine. The new crowdfunding rule, and the documents Maine businesses will need to file with the Office, can be found at www.investors.maine.gov.
Small businesses and consumers are encouraged to contact the Maine Office of Securities with questions regarding Fund-ME at 1-877-624-8551 (toll free in Maine) or (207) 624-8551. Shaw also reminded consumers that the Office of Securities' staff is eager to assist investors before they make any investment decisions. The Office can provide general information about investment professionals and products, including online investment opportunities. More information is available at www.investors.maine.gov.
Maine's Office of Securities is one of five agencies within the Department of Professional and Financial Regulation, located in Gardiner, Maine. More information about the Department can be found at www.maine.gov/pfr.
Fund-ME allows Maine businesses to raise up to $1 million, and generally permits individuals to invest up to $5,000 in each business during a 12-month period. Small businesses and entrepreneurs taking advantage of this new method for raising capital would provide offering documents to potential investors, including a subscription agreement and a completed Fund-ME offering circular.
"Consumers may be familiar with crowdfunding websites. Maine's new rule takes that basic concept of social funding and allows everyday investors to participate directly in the development of a Maine business," Administrator Shaw said.
Crowdfunding legislation has also been enacted at the federal level. The JOBS Act was signed into law in April of 2012 and authorized the Securities and Exchange Commission (SEC) to write federal rules for crowdfunding. Those rules were recently finalized, but Maine and other states moved forward in the interim. Maine's rule should provide a viable alternative for businesses that might not be interested in the federal approach.
Shaw noted that Maine's crowdfunding opportunity works differently than the approach taken by many other states, as it allows businesses to raise money from investors outside of Maine. The new crowdfunding rule, and the documents Maine businesses will need to file with the Office, can be found at www.investors.maine.gov.
Small businesses and consumers are encouraged to contact the Maine Office of Securities with questions regarding Fund-ME at 1-877-624-8551 (toll free in Maine) or (207) 624-8551. Shaw also reminded consumers that the Office of Securities' staff is eager to assist investors before they make any investment decisions. The Office can provide general information about investment professionals and products, including online investment opportunities. More information is available at www.investors.maine.gov.
Maine's Office of Securities is one of five agencies within the Department of Professional and Financial Regulation, located in Gardiner, Maine. More information about the Department can be found at www.maine.gov/pfr.
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