Bill provides businesses with a place to connect with investors in the state via intrastate broker-dealers
Small businesses looking to open their doors or expand their operations will be able to more easily connect with local investors throughout Michigan under legislation now headed to the governor’s desk, announced state Rep. Nancy Jenkins.
The Senate today unanimously approved House Bill 5273 – an extension of Jenkins’ crowdfunding measure enacted in 2013 – allowing for the creation of Michigan Investment Markets (MIMs), which operate as intrastate broker-dealers. The broker-dealers then connect Michigan businesses and residents, allowing stocks in local companies to be bought, sold and traded.
“Established small businesses and even new entrepreneurs are seeing the benefits of our recovering economy, and they want to be a part of Michigan’s brighter future,” said Jenkins, R-Clayton. “This will help small businesses raise the capital they need to open their doors or expand their business by making it easier for their friends and neighbors to invest, while also giving investors some flexibility in where their money goes.”
Under the Michigan Invests Locally Exemption, authored by Jenkins, small businesses and start-ups can use investment crowdfunding to raise money from both accredited and non-accredited individuals by waiving many state regulations that have prevented such financing in the past. HB 5273 supports these offerings by making it easier for investors and small businesses to connect via the broker-dealers.
“Locally owned businesses are opening in Michigan every day,” Jenkins said. “But there are still ways that we can continue to support their efforts, and this bill does just that. By investing in our communities and local small businesses, we are investing in Michigan’s future.”