The Canadian Securities Administrators (CSA) has adopted a single, uniform set of rules that will expand the ability of small businesses to use securities crowdfunding to gain access to capital.

Now small businesses and start-ups can increase the maximum they can raise under the crowdfunding prospectus exemption to $1.5 million (up from the previous $500,000) in a 12-month period. 

They can also raise the maximum investment a purchaser can make in an offering to $2,500 from $1,500, with a higher limit of $10,000 if a registered dealer advises that the investment is suitable for the purchaser. 

The CSA said the new rules will remove barriers that have prevented federal and provincial co-operatives or associations from using the start-up crowdfunding prospectus exemption. 

Since 2015, about 110 distributions of securities have taken place under the existing start-up crowdfunding prospectus exemptions, with an average investment of $576 from each investor.