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National Crowdfunding Association To Work With SCORE

[ 0 ] Oct. 1, 2012 | SBO Editor

The National Crowdfunding Association (NLCFA), recently announced that it has agreed, at the request of SCORE, to produce a series of educational webinars to teach the basics of crowdfunding to SCORE’s 13,000+ volunteers.

Over the past fifty years, SCORE’s “counselors to America’s small businesses” have helped over 9 million businesses get off the ground, grow and achieve their goals through education and mentorship.  Supported by the U.S. Small Business Administration, and its vast volunteer network, SCORE (www.score.org) delivers its mentoring services at no charge.  Its 364 chapters also hold free or low-cost events and workshops locally across the U.S. and its territories.

Through these webinars, the NLCFA will help educate SCORE’s thousands of volunteers, and indirectly educate hundreds of thousands of entrepreneurs and business owners on the procedures, benefits and risks of investment crowdfunding which is expected to commence in early 2013.  “A major part of our charter is to provide education about crowdfunding and SCORE is an ideal partner,” said David Marlett, Founder and Executive Director of the NLCFA.  “It is rare that I meet someone outside the finance industry who has ever heard the term ‘crowdfunding,’ or even Kickstarter.  We have to change that.  The future of financing small businesses is coming alive, and everyone should know about it as soon as possible.”

Investment crowdfunding, a revolutionary way of financing businesses in America, arose from the JOBS Act signed into law by President Obama this past April.  That Act allows small and start-up businesses to raise up to $1 million per year by issuing equity or debt securities to many small investors through an online site (portal).   Once the SEC gets its regulations finalized (probably early 2013), the first of millions of investment crowdfunding transactions is expected to commence.  Investment crowdfunding will add the investment element to what is an already successful donation model, popularized by online portals such as Kickstarter and Indiegogo.

Bill Hubbard, a Chicago attorney who leads the NLCFA’s Education Committee, said, “These webinars will cover the current statutory requirements, expected SEC regulations, risks, things to watch out for, and the particular steps businesses can take now, and what they will need to do in the near future, to take advantage of investment crowdfunding.”

The National Crowdfunding Association, www.NLCFA.org, the oldest and largest crowdfunding trade association in America, is comprised of hundreds of companies, firms and individuals who have an interest in the success of rewards-based and investment crowdfunding.

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Category: Features