Job creating legislation originally introduced in 2013 by New Jersey State Senator Joe Kyrillos to allow New Jersey residents to invest in New Jersey-based companies, startups, innovators and entrepreneurs received final legislative approval.
The bill, S-712/A-2073, would allow people to engage in online crowdfunding within the state of New Jersey. It heads to Gov. Chris Christie for consideration.
“At a time when conventional sources of financing are scarce, this legislation will help New Jersey’s innovators seek private capital from the investing public to develop their products or services right here in our state,” Kyrillos said. “Crowdfunding will level the playing field for future employers, giving those without access to Wall Street a chance to gain startup capital quickly and grow their business with the support of the community.”
Senator Kyrillos’ legislation will allow New Jersey-based entrepreneurs to seek up to $1 million in private investment in increments of up to $5,000 from unaccredited investors residing in New Jersey. It will not cost a single tax dollar.
Senator Kyrillos noted that more than 90 percent of New Jersey employers are small businesses owners, employing more than half of the state’s private-sector workforce.
“We grow jobs and opportunities for people here by eliminating opportunity-crushing regulations and antiquated roadblocks to ingenuity and economic revitalization principally driven by our state’s small businesses,” Kyrillos said. “Entrepreneurs in New Jersey deserve the same opportunities to thrive as innovators in other states who have turned several thousand dollars in online crowdfunding investments into thriving businesses with dozens of employees.”
Senator Kyrillos first introduced this legislation in October 2013, and it has since garnered bipartisan sponsorship from Senate Democrats Cruz-Perez and Lesniak, as well as Assembly Democrats Angel Fuentes and Upendra Chivukula. Other states such as Georgia, North Carolina, Kansas and Wisconsin have already taken action on similar measures.
“Unaccredited investors have always been able to risk capital in the public markets and now they can as well in private companies, small businesses, and entrepreneurial start-ups,” Kyrillos concluded.
This legislation is part of the Senate Republican’s recently unveiled 36-bill job creation and economic growth package.
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