Bill > S232

This bill aims to encourage small business growth by creating a new exemption from securities registration requirements for certain offerings. Specifically, it allows businesses incorporated and primarily operating in the Commonwealth, that are not investment companies or subject to certain federal reporting requirements, to sell securities to Massachusetts residents. These offerings are capped at $1 million within a 12-month period, with individual accredited investors limited to purchasing over $5,000. The bill mandates that commissions only be paid to registered brokers, that investor funds be held in escrow until a minimum offering amount is met, and requires issuers to file a notice with the secretary and provide extensive disclosures to potential investors about the company, the offering, and the risks involved, including that the securities cannot be resold. Additionally, the secretary will report annually on the impact of this new exemption.