Working It
As federal JOBS Act kicks in, local businesses look to benefit – but it may not be a local fix.
Thursday, October 18, 2012
Crowdfunding platforms like Kickstarter have long allowed artists and small businesses to trade gifts like CDs or raffle prizes for cash. But a new federal law will take crowdfunding to a whole new level.
The Jumpstart Our Business Startups Act, signed into law in April, is Congress’ effort to boost hiring. One piece of the massive policy package allows small businesses to sell shares through crowdfunding, which should make it easier to raise cash from the masses and eliminate the need to woo venture capitalists or angel investors.
Carmel-based business consultant Jim White presents to some 60 local business leaders on the JOBS Act in an Oct. 18 workshop hosted by CSU Monterey Bay’s Small Business Development Center, a partnership with the U.S. Small Business Administration.
White focuses on the red tape of crowdfunding rules, but he says Monterey Bay-area businesses generally have easy access to money.
“Access to capital is not the issue,” he says. “The issue for our region is government regulation and a skilled workforce. This new rule is not going to excite the Doles or Taylor Farms of the world.”
But for a franchisee like Jon Brandt, who launched Salinas-based Always Best Senior Care Services in May, crowdfunding could be the path to survival. “I’ve still got a buffer of original capital,” he says, “but I’m looking for alternate sources.”
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