A bill backed by a Morrisville businessman and Republican that would help entrepreneurs raise money through “crowdfunding” was approved overwhelmingly by the N.C. House today.

N.C. House Bill 680, call the bill the “North Carolina JOBS Act,” passed by a 103-1 vote, says WRAL.com’s Mark Binker.

The measure now goes to the Senate.

“It is a way … to take the power of the internet to help our small businesses grow in our state,” Rep. Tom Murry said of the bill.

He also said the NC Bar Association’s Security’s Division backs the bill.

The bill allow funds to be raised in $2,000 increments up to $1 million. Up to $2 million could be raised if a business goes through additional disclosures.

North Carolina would be the third state to pass such legislation.

The federal government already has a law on the books, but is still putting together the regulations.

The NC law will expire in 2017, when the federal law is expected to be in force.

Rep. Mark Brody, R-Union, says he believed it would help start small construction projects get funding.

Added Rep. Robert Brawley, R-Iredell: “We do need more creative way to raise funds and work together in North Carolina.” He added that some businesses were trying to do this informally now, so the bill would help bring people in from a legal gray area.

The bill passed the House finance committee on Wednesday.

Murry has said  the legislationwould help entrepreneurs raise money while the SEC wrestles with implementation of the Jumpstart Our Business Startup Act (or JOBS Act) that was passed last year.

“You’re talking about a mom and pop type of operation using a web based platform to raise capital and small investment,” Murry said recently at the General Assembly.

The Research Division of the General Assembly sums up the bill this way:

“House Bill 680 allows certain North Carolina businesses to raise funds by the sale of securities under certain circumstances by exempting the businesses from the registration and filing requirements of the North Carolina securities law.”