Eat local. Shop local. Why not invest locally too?
Businesses often turn to big banks when they're looking for funding to start or expand their business. Community members don't hesitate to invest their retirement funds in Wall Street. Today, Oregonians have other options!
Redirecting local money from Wall Street back to Main Street helps the Rogue Valley build “community capital.” A little goes a long way. Even $100—when combined with other investors’ $100—can help an entrepreneur start or improve a business, and the investor might receive a modest financial return, in addition to intangible returns such as supporting a business they'd like to see in business.
The Community Public Offering is a new tool for Oregon-based businesses to raise up to $250,000 from fellow Oregonians. Made legal through the Oregon Intrastate Offering Exemption rules on January 15, 2015, it offers the chance to raise capital from ALL Oregon residents, regardless of wealth. These rules:
- Enable securities crowdfunding (unlike Kickstarter’s donation-based crowdfunding).
- Allow all types of securities and terms, from debt to equity.
- Allow limited public advertising.
- Offering materials are not registered, vetted, or reviewed.
- Offering documents include information from your business plan, reason for raise, team, risks/benefits, terms, etc.
Companies using this law:
- Must be incorporated in Oregon and based within Oregon.
- Can raise up to $250,000.
- Define the terms of the offering.
- Must meet in person with local Business Technical Service Provider to review Biz Plan.
- Allowed 12-months to raise the funds; can extend another 12.
- Must be Oregon residents.
- Can invest up to $2,500 per deal, per person.
Doing a Community Public Offering involves filing comprehensive disclosure documents, your advertising copy and plans, minimum and maximum amounts that you seek to raise, and a few other sensible things. There’s also a $200 filing fee, so keep that in mind.
If you are thinking of raising capital within Oregon, Hatch Oregon is a good place to start.