HORNER WILLIAMS, LLC Consultants to Owners & Employers

Investors & Owners

A new era of small business capital fundraising has begun. The JOBS ACT, signed into law in April 2012, includes a provision for individual investors everywhere the opportunity to gain access to private investments previously limited to institutions, public funds, and so-called high net worth individuals. 

Individuals and small businesses will be able to raise up to one million dollars or more directly from the public. The opportunity for the "average investor" to invest directly in private small businesses will create both opportunities and pitfalls. This opportunity has not been available to the general public in over 80 years! This is truly a new day in small business investment. 

How do I apply to become a private investor or obtain small business funding?
Investors and small businesses are encouraged to apply long before they seek private investment information or funding. Not every small investor or business seeking investment will be a good fit for the JOBS ACT small business investment program.

Standards vary among private investments, but for Horner Williams, LLC businesses interested in private investment should meet the following criteria:

  • Only majority owners or partners (you must own or control at least 51% of the business) are eligible

  • Business in operation for at least two years, or a documented track record of previous business success in the case of a new startup

  • Sales above $150,000 in the most recent fiscal year

  • At least 50% of private financing must be used for asset purchases such as equipment, real property, furniture, machinery, real estate, trucks, etc.

  • All tax and legal obligations current

Debt financing takes the form of loans usually repaid over time, with interest. Private equity financing is much different because it takes the form of money obtained from investors in exchange for an ownership share in the business. The main advantage to equity financing is that the business is not obligated to repay the money. Instead, the investors hope to reclaim their investment out of future profits. If there are no profits, there are no payments.

Both debt and equity financing can prove valuable to both business owners and investors.

Simply submit your contact information to learn more. 

How much does it cost?
Horner Williams, LLC believes in financial transparency. We practice what we preach not only because it makes sense, but it is also good business.

Small Business Private Money Lending
All-inclusive services offered from $5,000 up.
Includes audited or reviewed financial statements, loan documents, loan syndication strategy, investor relations, legal compliance, as needed and more in preparation for funding. All fees paid by the borrower.

As the law stands today, anyone earning $100,000 or more can invest 10% of yearly income. Investors earning less than $100,000 per year can invest 5% of annual income or up to $2,000.

The new law will allow existing businesses and startups to raise up to $1 million, and existing businesses with two years of audited financials can raise up to $2 million.

The are three parts to the JOBS ACT:
#1 - Focus on Start Ups

#2 - Investors
#3 - Advertising

Previously, when a business had over 500 investors or $5,000,000 in outside investments, the business would need to register with the Securities and Exchange Commission. Going forward, you will not need to register until you have over 2,000 investors.

Businesses will need find a way to balance the cost of fundraising, investor communications, CPA reviews and audit compliance; all within a new competitive landscape. 

Running a successful business, raising money, reporting to investors and staying within the boundaries of the law will prove difficult for some entrepreneurs because oftentimes the business is too small to successfully navigate this new landscape alone.

By partnering with both management and small investors, Horner Williams, LLC develops strategies to increase capital investment and facilitate investor relations affordably. We help small businesses grow, while educating small investors about small business investment opportunities.

We also host private small business fundraising events and invitation only conferences.

Horner Williams, LLC also helps small businesses raise funds from traditional sources such as government agencies and banks. On behalf of small businesses, we have been successful securing financing from the Small Business Administration, NJ Economic Development Agency (NJEDA), Bank of America, American Express, and Chase Bank among others. No endorsement expressed or implied from or for any private firm or government entity.