Access to Capital Bill Passes US House

The US House has passed HR 2940, the “Access to Capital for Job Creators Act.” It now awaits action in the Senate. As I mentioned in a previous post, this bill would eliminate the prohibition on general advertisement (solicitation) of securities offered under Rule 506 of Regulation D, which is an exemption commonly used by entrepreneurs raising small amounts of capital.

This bill and the crowdfunding bill had broad support in the House, and the Obama administration has voiced its support of the crowdfunding bill, so prospects for final passage may be good.

My opinion is that the "Access to Capital" bill is very positive for entrepreneurs, but the entire crowdfunding concept is fraught with landmines for entrepreneurs. If you do choose this method, be sure you know the potential negative consequences and how to manage them or you may have a lot of very bad days!