What does Rule 147 allow an in-state business to do?

Rule 147 allows an in-state business to raise capital in their home state and avoid SEC registration under certain conditions. This is particularly beneficial for small businesses looking to access capital without the burden of federal registration processes. The rule was established to encourage local businesses to access funding from local investors by simplifying compliance requirements when the offerings are limited to the state where the business operates.

By focusing on local investors, the rule ensures that the business remains within the confines of its home state's jurisdiction, thus offering a streamlined pathway for fundraising. This approach supports local economies and entrepreneurship, as it helps businesses raise the necessary funds to grow while reducing the regulatory load that typically comes with federal securities offerings.