A bill proposed by state Rep. Bronna Kahle that would update Michigan’s investment crowdfunding law, Michigan Invests Locally Exemption, passed the Senate unanimously today.
“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. Currently, the law only allows Michigan residents to invest in Michigan-based businesses. Kahle’s legislation 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.”
Kahle welcomed Chris Miller, economic development coordinator for the city of Adrian, and Kyle DeWitt, general manager and co-founder of Tecumseh Brewing Co., to speak in support of the legislation when it was in the House Commerce and Trade Committee. Tecumseh Brewing Co. was the first Michigan business to use crowdfunding to come up with start-up costs.
House Bill 4305 passed the Michigan House with overwhelming bipartisan support in May and heads to the Governor’s desk for his consideration.
PHOTO INFORMATION: State Rep. Bronna Kahle (center) of Adrian is joined by Tecumseh Brewing Co. co-founder Kyle DeWitt (left) and Adrian Economic Development Coordinator Chris Miller (right) for testimony in support of House Bill 4305 on May 2 before the House Committee on Commerce and Trade.