Crowd Funding
4:16 pm
Thu January 23, 2014

Ala. Senate Seeks Crowd Funding For Small Business

The Alabama Senate is trying to give people a new way to raise money to start small businesses.

The Alabama Senate is trying to give people a new way to raise money to start small businesses.

The Senate voted 31-0 Thursday for a "crowd funding" bill sponsored by Republican Sen. Arthur Orr of Decatur.

The legislation is backed by the Alabama Securities Commission. It would allow someone trying to start a small business in Alabama to use social media and advertising to find small investors who live in the state. It is limited to raising $1 million, and it is restricted to Alabama businesses and investors because of federal regulations.

Orr says it's an option for people trying to start small businesses in a tough credit market. His bill now goes to the House for consideration.