Proposed legislation to facilitate public funding of small local green businesses
For A Green America‘s web site contains the complete text of proposed legislation that would allow the raising of “funds from the general public for a local investment pool (hereinafter “Community Fund”) . . . to invest in, and support local green businesses . . . through an unrestricted local public offering, without having to submit a registration statement with the SEC, or require any approvals from state securities agencies.” Such a local public offering would only be allowed under the following conditions:
- unaccredited investors would have to be residents of the state in which the offering was made; and
- at least 10% of the total funds would have to come from institutional investors whose minimum net worth is $100,000,000 each and/or from approved Small Business Investment Companies (SBICs).
The rationale is that the involvement of institutional investors would ensure oversight of the Community Fund by a sophisticated watchdog that would protect the interests of the rest of the investors.
The proposed legislation also authorizes the trading of shares issued by a Community Fund on an exchange or over-the-counter listing service.
