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Crowdfunding was seen as a way to marry the worlds of social media and venture capital, but the U.S. Securities and Exchange Commission has issued new guidelines that largely ban social media from the relationship.

Michigan businesses that were planning to use sites like Facebook and Twitter to inexpensively get the word out that they are looking to raise capital for expansion projects or to get off the ground are now consulting with attorneys and trying to figure out their next steps.

"It's going to extremely limit, if not completely close, the ability for businesses to use social media," said Thomas Coke, an attorney who works in business development for Grand Rapids-based VerifyValid, which runs a business-to-business payment service.

Issuers must be headquartered in Michigan, and the offering may be made only to Michigan residents.

Social media use isn't referenced in the Michigan law, so investors have interpreted the law to allow for its use.

The maximum a company could raise is $2 million if it makes audited financial statements available to investors as part of the offering. If not, the maximum is $1 million.

Securities may not be resold within nine months to any non-Michigan resident.

The issuer must provide quarterly reports to its investors and the state of Michigan for as long as the shares remain outstanding.

In 2012, President Barack Obama signed the JOBS Act, which created the possibility for equity crowdfunding, which opens up investment opportunities for those who previously were not allowed to receive a request to invest -- their annual income or net worth was not considered large enough to be considered an accredited investor.

The SEC defines an accredited investor as someone with a net worth of at least $1 million, or who has income of more than $200,000 in the previous two years. An unaccredited investor falls below those financial thresholds.

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New crowdfunding rules muddy biz use of social media

EXPOSED! White House Media Matters Writes News For Major Networks
Alex covers the news coming out that Media Matters has been influencing news released by numerous agencies including CBS, NBC, ABC and others. Alex takes cal...

By: THElNFOWARRlOR

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EXPOSED! White House & Media Matters Writes News For Major Networks - Video

ANGELS ARE SLAIN
ANGELS ARE #39;spirits #39; AND THAT INCLUDES SATAN. THESE BAD EVIL SPIRITS ARE THE CAUSE OF ALL THE GOV #39; WARS, MURDER, MAHEM, POISONS, AND MEDIA CONTROL. A FILM THAT MUST BE SEEN TO VARIFY THE...

By: Edward Everett

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ANGELS ARE SLAIN - Video

SPRINGFIELD, Mo. -- This week, the University of Arkansas increased security on campus after someone heard a rumor while at a bar that there would be a shooting on campus.

Authorities don't think the threat is credible, but it illustrates a heightened sense of awareness surrounding threats to schools.

No doubt social media has also played a big role in awareness.

Last fall, two different possible threats caused confusion at several schools in central Springfield.

While college campuses and some schools were on lockdown, social media blew up with mis-information about what was really going on.

It's very frustrating that we don't have that control anymore, says Springfield Police Chief Paul Williams.

Williams blames social media for spreading misinformation that day.

Before his investigators could let the public know the truth, rumors and suspicions had created chaos and panic on the web.

We took the bull by the horns and said we don't want that to happen again, Williams says. We need to control social media as much as we can.

Williams and school leaders met to craft a new plan for how to disseminate information during a school threat scenario.

Original post:
Social Media Adds New Difficulty to Response on Threats

WASHINGTON Despite an ever-expanding number of ways to put out news and information, a new report says the crackdown on media freedoms around the world has been unrelenting. Freedom of the Press 2014 says global press freedom has fallen to its lowest level in over a decade, with major setbacks in places that had been making progress only a few years ago. Just about everywhere, simply getting the news is getting harder. The non-profit democracy advocate Freedom House reported that media freedom is on the decline worldwide. We see attempts to control or manipulate the message, so increased use of propaganda, of trying to influence editorial content in advance. Then what we also see is a crackdown and harassment of bloggers and people who are using these mediums to get out information, said project director Karin Karlekar. Karlekar said media freedoms eroded so badly in 2013 that only one out of every six people worldwide had access to a Free media. In many areas that saw declines, she added, governments did not act alone. There were changes in media ownership at key outlets. And then we saw changes in editorial tone, we saw pressure being placed on journalists, said Karlerkar. North Korea was ranked the worst of the 197 countries and territories rated by Freedom House. Iran was also near the bottom despite a slight improvement during its presidential election. Syria, where journalists have been killed and kidnapped, was near the bottom as well. The Middle East as a whole saw the worst press freedom declines, led by Egypt, where the military-backed government cracked down hard, targeting journalists and putting them on trial.

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Report: Media Freedoms Worldwide at a 10-Year-Low