Regulating crowdsourced loans

Spanish crowdfunding projects, which source funds collectively in order to finance ideas and projects when traditional resources are hard to access, have needed increased regulation for a long time.

The goal is to increase transparency among these projects, but it is doubtful whether a pending Spanish business law (Ley de la Financiación Empresarial) will work.

The bill limits the number of investments and caps the total amount that a fund can raise. Companies think that the law will be a burden, especially to small businesses who are struggling to get traditional lines of credit at banks.

Because person-to-person loans are a sure way to galvanize business for small and mid-size companies, the government should do what it can to support this alternative investment model.