The Invest Georgia Exemption

On December 8, 2011, the Georgia State Securities Division promulgated new rules known as the Invest Georgia Exemption (IGE), which permit intrastate crowdfunding.

http://rules.sos.state.ga.us/docs/590/4/2/08.pdf

Specific Terms of the Exemption

● Georgia-based, private companies can sell equity (shares of stock or debt) to Georgia based non-accredited and non-accredited residents of Georgia.

● For-profit Georgia companies can raise up to $1 million annually from non-accredited and accredited investors who are Georgia residents.

● Georgia-based companies can publicly offer their securities in Georgia to Georgia-based residents through a crowdfunding portal such as SterlingFunder.

● Non-accredited Georgia residents can invest up to $10,000 per company. Accredited investors who are legal residents of Georgia can invest as much as they like.

● To qualify for the exemption, the company must (1) be a for-profit business, (2) be formed under the laws of the state of Georgia, (3) have its principal office in Georgia, and (4) carry out a significant amount of its business in this state.

● Companies issuing shares through the exemption must inform investors that the securities are unregistered and may not be resold to non-Georgia residents for a period of nine months after completion of the offering.

● SterlingFunder is the first equity crowdfunding platform for both accredited and non-accredited investors in the country and has initially focused on helping companies raise funds through the Invest Georgia Exemption.