Hosemann used a personal example of how he wanted to buy some property with a loan from the bank and was asked how much did the lot cost and how much did he want to borrow.
“I said it cost $24,000, and they asked, ‘How much do you need?’ I said, ‘$24,000,” Hosemann said. “So many Mississippians with good ideas need access to capital. The banking industry is exceptionally strong in Mississippi, but they get penalized for making loans when there isn’t capital or cash flow behind it. And then the Feds rank them down because of the Dodd-Frank regulations.”
Hosemann said he wanted to address those problems and he found crowdfunding can be a solution.
“It’s a way to finance a start-up until you get up and running,” Hosemann said. “In Mississippi, we don’t wait on the federal government’s verification, and I didn’t wait on them either. So our Legislature gave me the right as the Secretary of State to write the regulations for crowdfunding in Mississippi, effective a week ago last Friday.”