TOPEKA, Kan. (AP) -- A Kansas regulator has loosened the rules for small businesses trying to raise capital by selling stock within the state.
Interim Securities Commissioner Josh Ney announced Tuesday that he increased the limit on how much businesses are allowed to accept from a single investor to $5,000. It had been $1,000.
Ney issued an order last week modifying what's known as the Invest Kansas Exemption in the state's securities regulations. The exemption allows Kansas businesses to raise $1 million in capital within the state without having to register the stock they sell with the state as securities.
The exemption was enacted in August 2011 and is aimed at allowing small, local investors to start new businesses. It's been used to start a variety store in Stafford and a grocery in Minneola.