The Northeastern Vermont Development Association (NVDA) will host an informational meeting on the Vermont Small Business Offering Exemption (VSBOE) and other securities registration exemptions for small businesses to raise capital. Michael Pieciak, deputy commissioner of the Department of Financial Regulationís (DFR) Securities Division, will talk about the new guidelines Thursday, August 21 at 3 p.m. at the NVDA conference room on 36 Eastern Ave. in St. Johnsbury.
The recent modifications to Vermontís securities regulations support entrepreneurship in the state while protecting the interests of investors. VSBOE now allows Vermont businesses and start-up companies to raise up to $2 million in capital by selling shares in their company to in-state investors. The regulation allows for a simplified process to reduce the regulatory burdens and costs usually associated with securities registration.
Traditionally, federal and state securities laws have limited investments in small businesses to wealthy individuals. VSBOE gives all Vermonters the opportunity to support local entrepreneurs, and existing and new small businesses. Participating businesses will be registered with DFR and will allow individual investors to purchase up to $10,000 in stock equity from a single business. VSBOE also allows certain high net-worth individuals to purchase an unlimited amount of equity.
There are also guidelines for small business owners concerning the type of information and disclosures that should be provided to prospective investors under a VSBOE offering.
Anyone interested in learning more about VSBOE is welcome to attend. People may also contact the Departmentís Securities Division at 802-828-3420. Full details of VSBOE and its guidelines can be found on the Departmentís website at www.dfr.vermont.gov.
Contact: Dale Schaft, Information Management Officer, 802-828-4872