HB 1299 - Small Business Investment Summary

• Creates "Crowdfinance Act of 2014" providing securities offering exemption for for-profit Florida businesses raising up to $1 million from Florida residents within 12 months

• Exempts funding portals from dealer registration requirements if they comply with federal broker-dealer notice requirements and do not offer investment advice, solicit purchases, compensate for solicitation, or hold investor funds

• Limits non-accredited investor purchases to $2,000 or 5% of annual income/net worth (whichever is greater) if income/net worth is below $100,000; increases to $100,000 or 10% if income/net worth is $100,000 or more

• Prohibits use of crowdfinance exemption with other registration exemptions except for sales to 10% shareholders or officers/directors/partners/trustees

• Requires issuers to file notice before general solicitation or 25th sale and deposit investor funds in federally insured institutions; mandates prominent risk disclosure warnings in offering materials