Photo: Marcin Wichary (CC-BY)
Cat Johnson of Shareable writes about the Local Economies Securities Act (AB2751) and what it could do for investors and entrepreneurs in California.
"If you want to invest in a publicly traded company, you simply purchase securities in the company. But if you want to invest in the organic farm down the road, or a new renewable energy startup in your town, it’s not that easy.
Small businesses and entrepreneurs face a costly permitting process or can only pursue private investments from wealthy investors—not small investments from a larger number of people. And would-be investors find few opportunities to invest locally, in part, because of the lengthy and costly securities regulation process and a lack of awareness about local companies seeking investment.
The new California Local Economies Securities Act (AB2751), authored by the Sustainable Economies Law Center (SELC), aims to make it possible for small farms, agricultural land trusts, cooperatives, nonprofit organizations with business income, and renewable energy systems in California to raise capital without going through a costly permitting process."
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