State Rep. Bronna Kahle’s legislation that would update Michigan’s investment crowdfunding law, Michigan Invests Locally Exemption, has been signed into law by Gov. Rick Snyder.
“Investment crowdfunding has played an important role in helping people raise the money they need to start and grow small businesses,” Kahle said. “Expanding crowdfunding options to more businesses will provide opportunities for further economic growth.”
Michigan first adopted legislation allowing crowdfunding in 2013. Previously, the law only allows Michigan residents to invest in Michigan-based businesses. House Bill 4305, now Public Act 141 of 2017, will expand the program to allow companies whose principal place of business is in Michigan, but may be incorporated in a different state, to conduct investment crowdfunding activities.
To date, 35 states plus the District of Columbia have now enacted investment crowdfunding legislation and many have used Michigan’s law as a model. House Bill 4305 will allow Michigan to continue to be a national leader with its investment crowdfunding law.
“Crowdfunding has created numerous opportunities for start-ups by allowing Michigan residents to invest in Michigan-based businesses,” Kahle said. “This legislation is another way to help start-up business get the necessary funding to get businesses off the ground or to support the growth of existing businesses.”
House Bill 4305 passed the Michigan House with overwhelming bipartisan support in May and advanced through the Senate with a unanimous vote on Oct. 18.
PHOTO INFORMATION: State Rep. Bronna Kahle of Adrian and Adrian Economic Development Coordinator Chris Miller watched Gov. Rick Snyder sign legislation to update Michigan’s investment crowdfunding law, Michigan Invests Locally Exemption.