State Rep. Nancy Jenkins is once again supporting local investment to further spur the Michigan economy and encourage local business owners.
Jenkins sponsored House Bill 5922, which allows local municipalities to invest in small and local businesses provided the company’s principle office, or more than half of their assets or employees, are based in Michigan.
“By allowing our local communities to invest in Michigan-based businesses, we can do even more to attract and retain local businesses throughout our state,” said Jenkins, R-Clayton. “It also gives our municipalities a chance to receive a return on their investments, benefitting their employees and making our cities and villages better places to live and work. It’s a win-win situation for Michigan, and I am proud to sponsor this bill.”
Under current law, local municipalities with a pension system of more than $250 million can invest up to 2 percent of their funds into local and small businesses. HB 5922 lowers the pension fund threshold to $15 million and allows these smaller municipalities to invest up to 5 percent of the system’s funds into local companies. The bill also caps the amount that may be invested into any one business at $100,000.
“This bill is just another way we can support and encourage local, family-owned businesses to open their doors or expand their reach within our communities,” Jenkins said. “It’s exciting to think what could happen in our state with these additional investments and new opportunities.”
Recently, Jenkins was honored by the Michigan Municipal League for her efforts in the passage of legislation that benefits local governments and communities, thanks to laws she authored establishing equity crowdfunding and Michigan Investment Markets.
HB 5922 will be formally introduced when the Legislature returns to session.