Wednesday, May 28, 2014

The NC JOBS Act Works for Rural Business Too

Crowdfunding is rooted in community. Before the modern mega-banking industry began to take shape, communities would come together to finance the needs of community members. Small rural banks knew their borrowers and their depositors. This was truly "relationship banking." Today however, relationship banking is all but dead. To most banks, the customers are merely a collection of numbers: credit scores, account balances, assets, and income. This way of doing business means that customers in small or rural communities are usually under-served. 
The 2008 credit crisis made matters even worse for rural communities. Many local banks failed, and national banking conglomerates curtailed their lending activities in these communities. Things haven't gotten better. Small business borrowers in particular have few alternatives when it comes to accessing capital. Rural communities may not yield the next Twitter or Facebook, but they are places where people live and work. The rural small business owner deserves the same opportunities to grow their business as any other company. Here in North Carolina, one way to serve rural citizens and aid rural economies is with grant programs like the Golden Leaf Foundation. And now, with the NC JOBS Act, North Carolina will have another tool to help these communities.

The NC JOBS Act brings control of financing back to the community. Through crowdfunding, as defined in the NC JOBS Act, rural small businesses will be able to solicit their customers and community members when it comes to raising money, and not be limited to just the banks and grant programs. Now, the people who are best equipped to assess the prospects of a rural small business, the very same people who live in those communities, can contribute to the development and growth of their local economies by investing in local businesses. We've seen this play out on a larger scale, such as the success of CrowdCube in the U.K. in helping many small businesses, so why should we wait any longer for our rural and local small businesses to benefit from the same fundraising tools?
The NC JOBS Act is a common sense solution to an important problem: giving small business owners the capital they need to grow and hire. At the same time, it gives many individuals the opportunity to invest locally. Let's make 2014 the year we implement this important new fundraising framework.

Support the North Carolina JOBS Act:

If you have not yet done so, now is the time to contact your state Senators with an email of your support for H680, the NC JOBS Act. It is very easy to do using the links we give below.


If you have any questions or comments, please email the JOBS NC Crowdfunding Team at jobsnc@nc.rr.com or contact Representative Murry’s office at murryla@ncleg.net.



No comments:

Post a Comment