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FOXBusiness.com's Kate Rogers on the crowdfunding debate taking place in Washington.
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So lots of things happening for small businesses aside from the fact that they have all these rules and regulations come down -- banks who are -- initiation.
But there's this whole crowd funding debate going on -- I'm terribly sure where it is even is this -- -- ride this year Fox Business outcome.
-- -- he's on the website talk about this so what exactly is good because my house representative.
Raw data warehouses.
-- President Obama is involved and spends Abbas so crowd funding essentially allows small businesses to raise capital online from their friends and family.
Through social networking sites and other web sites and but of course we know access to capital is a major issue for small businesses -- especially in a -- time.
Sell it.
This is kind of -- great now in the senate and at the house approved the content anywhere access to capital act in in November overwhelming.
His the goal is put 400 eat to seventeen something something like that so that and they're very strongly feet graphic and currently -- now there's TU.
Bill stuck in the senate because.
-- -- isn't legal currently because in these -- securities laws from the 1930s.
So there's a lot going on right -- so we spoke to use the small business and entrepreneurship council.
Who are lobbying -- now on Capitol Hill in favor of -- funny because they think it would really.
Does loosen up capital for small business owners and give them the opportunity.
To basically go public on on the web and -- -- businesses.
-- can of their company so that's and they give it do you think they're putting yourself out there and saying hey anybody that wants to invest in invest yes exactly you can raise 510 dollars twenty dollars hundred dollars and you don't have to go through these banks which have really tighten the reins on their their lending.
But we also spoke with the North American Securities Administrators Association and today aren't -- of -- finding but they think that it -- investor protection that there's not enough.
Protection for and balance between the actual start -- and the investors that are.
Putting mind the company so.
Right -- the small business and entrepreneurship council what they say is that.
Like -- -- -- funding is a really quick and easy way for small businesses to raise money get started with out.
Having to go through banks but they do acknowledge that it does kinda opened up the doors for fraud so there does need to be more investor protection article is up right now it's on Fox Business let's say why king set up shop on FaceBook is yes good -- Michigan you don't face what exactly do it down to social media -- right now there's -- thing called kick starter dot com which allows people to.
-- towards different creative projects that they don't actually get at stake in the company -- the project rather they get some really good teacher or you know free coffee -- something like that so it's really small investments in small return but this would be you actually -- -- stake in the company.
So in the North American Securities Administrators Association they want but -- had more about they want -- cap on how much investors can actually put into these companies.
They want it capped at 500 dollars President Obama and his startup America legislation he said he's okay with you being -- at 101000 dollars into.
Companies like this and the two senate -- they have different levels.
What investors can put in based on your annual income.
There's a lot of different.
Things floating around -- know.
I think you'll get a trying to find some balance -- well we don't have happen.
Okay but so it's through the House of Representatives announcement of -- Yes Philly -- to separate -- -- -- and that they have been more focused on investor protection and the house felt like cell.
Would that be helpful they said to me at their ultimate goal is have this on the president's desk by Jean.
And that's what they're doing now -- -- -- lobbying -- Capitol Hill and hopefully getting people on board itself.
How -- people find out more about this what they didn't read my article which have more information check some website -- small business -- -- fat -- and also -- -- SB -- they have a lot -- -- excited about what's going -- -- -- -- -- -- Things really -- -- On you -- -- foxbusiness.com check out her article on crowd funding which is on the Fox Business website.
That's an -- I think that's a really -- -- no way to use social media right.
