Washington, D.C. (Press Release – September 15, 2011) – Small Business & Entrepreneurship Council (SBE Council) member and entrepreneur Sherwood “Woodie” Neiss brings his Crowd Fund Investing (CFI) framework to a congressional hearing today, where there is growing support to modernize outdated security laws that prevent small business owners from tapping into their networks for raising capital. Today, the U.S. House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs is hosting “Crowdfunding: Connecting Investors and Job Creators” where they will hear from Neiss and other witnesses on models for crowdfunding. The CFI model presented by Neiss, which includes strong investor protections, has been crafted in conjunction with SBE Council. President Obama included a crowdfunding proposal in his 2011 American Jobs Act based upon this model.
SBE Council President & CEO Karen Kerrigan argues that at a time when entrepreneurs and small businesses have limited sources for accessing capital, the nation needs to reform archaic rules that are hurting U.S. competitiveness, innovation and entrepreneurship. “We need to modernize and tweak outdated rules to allow Americans to invest in promising small businesses. Access to capital is becoming much more difficult and we need to identify and develop effective and modern ways for entrepreneurs to connect with potential funders,” said Kerrigan.