Atlanta's New Rule for Small Business That No One is Talking About
Back in 2011, the Georgia Legislature started an initiative that would encourage the growth of small and medium businesses through crowdfunding investments. The new rule change, which is was officially in effect since last month, will allow for SMB’s to get around the previous restrictions of crowdfunding in the state.
Brian Kemp recently said in an interview with the Atlanta Business Chronicle that
“It’s the government getting out of the way and allowing the free market to work”.
Since July, when the “Invest Georgia Exemption” began, there have been 50 companies that have taken advantage and started raising capital by selling debt and/ or equity through accredited and non-accredited investors.
And it’s left to the imagination how companies will make use of this newfound freedom. One such business is a real estate lending marketplace that has been selling investment opportunities to people starting at $10. Groundfloor has leveraged their easy access to capital to move from Raleigh to Atlanta in just one month. Brian Dally, Groundfloor’s CEO, said that…
“We’ve seen firsthand how these rules benefit our state economy by fostering innovative ideas, jobs, and investment opportunities that wouldn’t germinate otherwise”.
And if that isn’t enough, companies can now solicit these types of investment through social media. This will allow for launches of new companies based out of Georgia to raise much more capital. In fact, this new law has raised the amount a company can raise through investment from $1 million to $5 million.
Things are looking great for Atlanta’s small and medium sized businesses. It’s no wonder why they sold more in this year’s second quarter compared to a year ago. Business owners that have been defensive for a while are now saying “it’s time to act”! Let’s see where this takes our wonderful city.
Startup | Small Business | Financing | Capital | Social Media Marketing | Crowdfunding | Atlanta