Small businesses in New Jersey could sell securities to the public under a bill before the Legislature, but there's a catch -- investors would need to live within state borders.
The "intrastate crowdfunding" measure is similar to what online services such as Kickstarter offer for new business and arts projects. But instead of T-shirts or mugs as a thank-you gift, mom-and-pop investors would get small amounts of equity in the business. Each investor would be able to supply up to $5,000 worth of capital; entrepreneurs couldn't collect more than $1 million in total.
