MONTGOMERY, Ala. (AP) -- Alabamians are being given a new way to raise money to start a small business.
A spokeswoman for Gov. Robert Bentley says he signed legislation Tuesday that was sponsored by Republican Sen. Arthur Orr of Decatur and supported by the Alabama Securities Commission.
The new law allows someone trying to start a small business in Alabama to use social media and advertising to find small investors who live in the state. The so-called "crowd funding" is limited to raising $1 million, and it is restricted to Alabama businesses and investors because of federal regulations. The investments are capped at $5,000 for most people.
State Securities Commission Director Joe Borg describes the legislation as a significant opportunity for Alabama entrepreneurs to raise money in a tough credit market.