An Outlaw Raises Money From The People To Fund Small Businesses

Growth-oriented small businesses are everywhere, but funding for them is not. New and seasonal businesses and businesses with uneven cash flow have a hard time raising money. It is especially hard for women- and minority-owned firms to raise money. These companies make up a growing share of small businesses. Undercapitalized companies have lower sales and profits, generate fewer jobs and are more likely to fail.  Regulation A+ (Reg A+) of JOBS Act was approved in June 2015 to help entrepreneurs and small business owners raise money from average and wealthy Americans. The majority of companies have used this legislation to raise money directly via equity offerings. A few have created innovative financing companies that use the law to raise money to lend to other businesses. “If you own an equity piece of a company, it might take years to get a return. You have to wait for a company to exit, be acquired or do an IPO” said Sally Outlaw, president and founder of Worthy Financial. “We created a debt product to deliver a financial return right away.”