Crowdfunding won’t work for small businesses unless the U.S. Securities and Exchange Commission limits the burdens imposed on companies that use this new method of raising capital. That’s what crowdfunding experts told members of the House Oversight and Government Reform Committee during a hearing on the JOBS Act, the new law that aims to make it easier for small businesses to raise capital. Once the SEC issues regulations governing crowdfunding, small businesses will be able to use Internet intermediaries to raise up to $1 million in small investments from lots of people.
