Microfinancing Part II

Want to learn more about microfinancing? (See my blog post How to Grow the Economy: A Blueprint for NYS and the World.)

Check out today’s Business section of the Washington Post. A full page (G4) is devoted to the concept (Online link), including a brief interview with Premal Shah, founder of Kiva.

A secondary feature of microfinancing businesses in the U.S. is the phenomenon called “crowd funding.” Crowd funding takes advantage of the Internet to allow private businesses to raise capital through sales of shares to online purchasers. Legislation is being considered that would enable that a method of raising money to become more widespread. One proposal is to annow companies to sell a maximum of $2 million in equity with minimum investments of $10,000 for qualified investors.

Congress should take steps to clear the way for crowd funding with minimally invasive protections for potential investors. The benefits to small businesses seeking to grow in an environment where the traditional means of raising capital are not accessible is enormous in terms of potential for growing the economy and boosting employment.

They could call the new legislation the Stimulus That Costs The Taxpayer Zero law.

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