Small businesses interested in using equity crowdfunding to raise capital now have it better. A final SEC rule (which is an amendment to the Regulation Crowdfunding) became effective March 15, 2021. It increased the limit on the amount of capital that can be raised through crowdfunding to $5 million (up from $1.07 million). The rule also eliminates investment limits for “accredited investors” and uses the greater of annual income or net worth for calculating the investment limit for non-accredited investors. #IdeaoftheDay
Important: The deadline for applying for a PPP loan runs through May 31, 2021.
