A Bend Commercial Real Estate Agent says a new law could help generate new jobs in Central Oregon and across the country. Darren Powderly with "Compass Commercial Real Estate" says Crowd Funding is now allowed. The concept allows businesses and others to ask for donations or investors to help them fund good ideas and new products.
Crowd Funding is gaining a lot of momentum in other countries where its bringing a lot of money, and Powderly says it's especially useful for business start-ups who may not be able to get traditional funding from a bank or credit union.
"PRESident OBAMA SIGNED THE JOBS ACT LAST YEAR AND THERE ARE 2 ELEMENTS OF THE ACT THAT ARE REALLY IMPORTANT - ONE, IT LIFTS THE BAN ON PUBLIC SOLITITATION FROM A COMPANY - SO COMPANIES WILL START ADVERTISING FOR FUNDS this year. - THAT HAS BEEN ILLEGAL SINCE 1934. "
The other aspect opens up Crowd Funding for not just businesses, but everyone else. Powderly gives a local example of a possibility - he says part of the OSU-Cascades effort could be funded by Crowd Funding. It allows people to give smaller amounts like $25 dollars to a project and those many small donations are pooled for the larger effort. Another method is to ask for small investiments, similar to buying stock for equity or bonds for income.
Some experts are projecting a 300 billion dollar market for Crowd Funding.