NASSAU, BAHAMAS — The capital markets will soon be in reach of Bahamian small businesses and entrepreneurs, according to Minister of State for Finance Kwasi Thompson, who noted that businesses will be able to raise up to $5 million via crowdfunding.
Thompson, who was making a contribution to the debate in the Senate on the government’s fiscal strategy, mid-term budget communication and a compendium of financial and statistical legislation, noted that this is the latest initiative to support small Bahamian business and entrepreneurs.
“The Securities Commission of The Bahamas will soon release its Securities Industry (Business Capital) Rules, 2021, which modernize the rules for small businesses to raise capital,” said Thompson.
“These rules make the process of raising crowdfunding less costly and less bureaucratic for small businesses. Under the terms of these new proposed rules, businesses will be able to raise up to $5 million via crowdfunding without having to file a prospectus with the Commission.
“The shares created under this framework will be transferable and can be traded on the secondary market such as BISX.”
He added: “For too long, small businesses that wanted to offer shares in their company to raise capital had their hands tied by the bureaucracy. Not anymore.
“With crowdsourcing provisions and other modifications to the regulatory regime, the ability for the small business to raise capital and sell shares will no longer be limited to the proverbial ‘big boys’ in the corporate world.
“We are bringing the capital markets within the reach of the Bahamian entrepreneur and small businesses.”
Thompson noted that the new rules will provide protections as well for small businesses.
He noted that there will be limitations on the number of shares that an individual outside investor may hold, thus protecting the small business owner from hostile takeovers.
Bahamian company ArawakX yesterday announced its intention to introduce the first licensed equity crowdfunding platform in The Bahamas, pending approval from the Securities Commission.
Thompson also noted that, to aid entrepreneurs, the Ministry of Finance is committing more than $20 million in financing in Fiscal Year 2021/22 year to recapitalize the BDB and increase funding opportunities for small and medium-sized businesses in The Bahamas.
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