Small Business Crowdfunding Act Heads To Governor DeWine

COLUMBUS – State Rep. Jena Powell (R-Arcanum) today announced final House approval of   House Bill 312, her legislation allowing Ohioans to raise up to $5 million through intrastate equity crowdfunding to start, grow, or expand their business.

"The Small Business Crowdfunding Act will improve Ohio's business climate and attract investment in our state," said Powell. "Getting this bill signed into law sends a message to our neighboring states that Ohio is open for business"

Crowdfunding is a relatively new and evolving method of raising capital online for startups and small businesses. An individual or entity typically seeks small individual contributions for a large number of people in order to raise funds.

In order to qualify, a business must have 80 percent of its assets in Ohio, and 80 percent of the money must be spent in Ohio. Only Ohio residents can purchase securities, and an investor is typically limited to a $10,000 contribution per year.

Under the bill, crowdfunding must be collected through a website operated by a portal operator who is required to provide disclosures to investors and records to the Division of Securities.

The Small Business Crowdfunding Act also contains safeguards to protect Ohio consumers and penalties for those who conduct deceptive acts.

The House today concurred with a Senate-added amendment that increases the appropriation to the Facilities Establishment Fund to provide funding to state capital projects.

The measure now heads to Governor DeWine for his signature.