Capital Formation Resource Guide

Capital Formation Resources for Small Businesses and Entrepreneurs

There are many ways to raise the capital necessary to grow a business, including using personal funds and assets, and perhaps taking loans against those assets. Another way small businesses can raise capital is by selling stock or other securities in their companies. Before engaging in such financing arrangements, however, you must be aware of state and federal laws governing the offer and sale of securities. NASAA members are available to small business owners and the professionals who advise them to provide information on the options available to raise capital in compliance with state or provincial securities laws.State and provincial securities laws assist companies raise capital and further their business growth while maintaining necessary investor protections. Undertaking a securities offering is an important decision in the life of a business. For some it can provide a viable financing alternative, but a securities offering may not be appropriate for every business.

The information in this Guide is  provided for your convenience and is not intended as legal advice. Prospective securities issuers or their representatives are encouraged to contact their state securities regulator in the United States or provincial/territorial securities regulator in Canada for further assistance.


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