PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Kerrigan on FinTech TV: Investment Crowdfunding Can Be Supercharged to Accelerate Small Business Recovery and Creation During COVID-19

By at 23 October, 2020, 11:38 am

In a new edition of FinTech TV, host Vince Molinari interviews SBE Council president & CEO Karen Kerrigan on the progress and success of investment crowdfunding and how it can be “supercharged” through a “Main Street Recovery Co-Investment Fund.”

As noted by Kerrigan in the interview, the use of regulated crowdfunding is growing among Main Street businesses and entrepreneurs during the COVID-19 crisis to support recovery, resiliency, reinvention and survival. There has been no fraud reported to date with investment crowdfunding, and it is truly democratizing access to capital as was envisioned and foreshadowed by supporters.

Within almost every Congressional district (393 districts total) a regulated crowdfunding raise has occurred, and many have had multiple raises. (See the recent report published by Crowdfund Capital Advisors and SBE Council, Crowdfunding by Congressional District: A Report Card.)

With the Federal Reserve sitting on hundreds of billions of dollars in unused capital, Kerrigan points out that a co-investment fund is a “solution sitting on a silver platter” for the Federal Reserve, working with the U.S. Treasury, or Congress to implement.

The regulatory framework is in place (via SEC regulated platforms), providing the federal government with a turn-key solution to boost Main Street businesses, and support the robust business creation that is currently taking place. Both new and existing businesses need and will need capital to grow and succeed during the COVID-19 economy and beyond. Enabling and incentiving local investment and the desire local citizens have to support their local small businesses through a co-investment fund will accelerate economic recovery.

Related Content:

Crowdfunding Success Indicates Small Businesses and Startups Worthy of Government Matching Program, Forbes, October 7, 2020.

WEBINAR: The Main Street Recovery Co-Investment Fund (Video Recording), October 3, 2020.

Small Business SOS: It’s Time to Supercharge Local Crowdfunding to Unlock Needed Capital, September 16, 2020.

 

Contact: Karen Kerrigan, kkerrigan@sbecouncil.org

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