Editorial Submitted to Shawnee Dispatch, November 30, 2011 Democratic Economic Development Anyone who has ever started

a business knows that obtaining a startup loan or funding can be maddening, if not impossible. Help may be on the way. Something called crowd-funding could break the stranglehold banks have on small businesses obtaining startup capital. Congressman Patrick McHenry (R-NC) has introduced HR 2930 Entrepreneur Access to Capital Act. It modifies federal and state securities regulations from the 1930s. It will give small business entrepreneurs the ability to raise up to $2 million by selling investment shares to regular folks like us. On November 3 the House sent HR2930 to the Senate with a favorable 407-17 vote. Crowd-funding is not a new idea. Think of causes soliciting donations to address unmet social needs, or the Nobel Peace Prize winning Bangladeshi Grameen Bank. Organizations such as kiva.org have brought together crowd-funding and micro-lending to connect individuals as lenders to developing world entrepreneurs. Shawnee s proposed economic development fund also recognizes the reality of a failed banking system with taxpayer funded micro-loans. Unlike old school donation based crowd-funded micro-lending; the new law would actually permit a tangible return on investment for businesses here in the United States . Unlike taxpayer supported loans such as Shawnee s proposal, HR 2930 opens up lending to the market place. As individuals, we would now be allowed to invest in local, small startup businesses. Instead of just being customers, we could be co-owners. I urge you to join me in asking Senators Roberts and Moran to support the Entrepreneur Access to Capital Act.

Source: http://www.npr.org/2011/11/27/142821690/the-deregulation-bill-thatsdrawing-crowds