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Raising Capital

You have probably heard the old saying, “it takes money to make money.” Businesses, no matter what size or nature, require capital to grow and succeed, whether that means raising money for a new product or service, expanding a facility, or entering a new market. As an entrepreneur, you have likely relied on your personal assets, and perhaps even taken loans against those assets, to start-up and expand your business.
There are other means of raising the financial resources necessary to grow a business. One of the most frequently used alternatives is selling “securities”— such as stocks, bonds or other forms of investment vehicles—in your company. Before engaging in such financing arrangements, however, you must be aware of state and federal laws governing the offer and sale of securities. 
As part of its mission to encourage capital formation to foster a strong economy for its citizens and investors, the Department of Banking and Securities works to help the small business community understand and comply with the laws governing the offer and sale of securities in Pennsylvania.


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