The Transylvania Times -

Moving To Conservers To Gather At Peaks & Creeks Brewing Co.

 

August 27, 2018



A local stock market without livestock? This is now a possibility that may allow local businesses of all kinds to get funding for growth. Small businesses and entrepreneurs in North Carolina recently gained a new avenue to obtain funding on a local level through the recently effective North Carolina Providing Access to Capital for Entrepreneurs and Small business (NC PACES) Act.

The act provides a way for N.C.-registered small businesses or startups to obtain “crowdfunding” by setting up a PACES-compliant debt or equity offering, allowing local communities an opportunity to grow local enterprises.

The NC PACES Act allows N.C.-based investors to buy local equity or debt offerings on a small scale. This allows money to be invested close to home, so locals can support area businesses and enjoy the benefits of a healthy, local economy.

This process will be the topic of an informational gathering offered by Moving to Conserver, a cooperative of study, conversation and local action. The gathering will be held on Friday, Sept. 7, from 3-5 p.m., at Peaks & Creeks Brewing Company in the Brevard Lumberyard district. The guest speaker is Benji Jones, a Raleigh attorney, who has been a proponent of the new law and will explain how small businesses and local investors can take advantage of it. A networking session will follow until 7 p.m.

Typically, businesses must register with the Securities and Exchange Commission (SEC) in order to sell shares on a stock exchange, and accredited SEC-registered investors must have a net worth of more than $1 million. Now, North Carolina residents can invest up to $5,000 in a N.C. startup or small business that creates a PACES compliant debt or equity offering. “Angel” investors who are accredited can also participate at higher amounts. The Act sets forth rules to make these investments safe and the risks transparent.

There are two routes one can take to raise funds under this exemption: up to $2 million can be raised via a NC PACES Offering (NCPO), or up to $250,000 with a Local Public Offering (LPO). Both require registration with the state, disclosure of business plans, and quarterly reporting, but also allow for promotion of the offering on the Internet or by other methods, as long as all information required by the exemption is available to potential investors.

Investors can build equity, receive dividends, or sell their shares to another N.C. investor, depending on how the offering is set up. Of course, as with any business venture, there is risk you may lose money, and these risks will be clearly communicated by the issuer.

Seating may be limited on Sept. 7, so feel free to bring a chair. For more information, contact Kim Coram or John Wiseman at jbwkjc@gmail.com.

 
 

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