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New Va. law regulates crowdfunding for small companies

The Associated Press//July 21, 2015

New Va. law regulates crowdfunding for small companies

The Associated Press//July 21, 2015

(AP) A Virginia law hits the books this month that will make it easier for small companies to raise capital.

According to the State Corporation Commission, the agency’s new regulations will allow companies to raise up to $2 million through crowdfunding. Crowdfunding typically uses the internet to raise funds.

Virginia Code amendments adopted by the 2015 General Assembly establish the criteria for such funding appeals, which are exempt from the more detailed registration requirements of the Virginia Securities Act.

The Virginia crowdfunding exemption allows companies to raise up to $10,000 from each investor.

The state code amendments were effective July 1. The SCC regulations take effect on July 31.

Updated July 21 to reflect separate effective dates for the code amendments and the regulations.

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