Businesses in Oregon could soon take advantage of the crowdfunding phenomenon.
State regulators Wednesday heard from the public on proposed rules to let smaller companies raise cash from Oregon investors. Think Kickstarter -- except instead of making a donation you'd be making an actual investment in a small business.
It’s a workaround of federal rules -- with a $250,000 limit per company. Small business advocate Jarvez Hall said he thinks the new policy could open doors to people of color who can have a harder time accessing traditional sources of capital.
"It kind of takes the stigma around color and race and some of those things out of the equation, and it brings it right back to do you have an idea, do you have a passion, do people believe in it. And if they do, they support it,” Hall said.
The Oregon crowdfunding rule could take effect as soon as next month. Washington state is rolling out a similar policy. A spokesperson for the Washington Department of Financial Institutions says the agency has yet to receive a crowdfunding filing since the rules took effect November 1.