Legislation expands opportunities for small businesses
State Rep. Bronna Kahle’s legislation to update Michigan’s investment crowdfunding law, the Michigan Invests Locally Exemption, recently received overwhelming bipartisan approval in the Michigan House of Representatives.
Michigan first adopted rules allowing crowdfunding in 2013. Currently, the law only allows Michigan residents to invest in Michigan-based businesses. Kahle’s legislation will expand the program so people can also invest in small businesses primarily doing business in the state and allows Michigan’s law to remain active under new Federal regulations.
“Crowdfunding has created numerous opportunities for start-ups by allowing Michigan residents to invest in Michigan-based businesses,” Kahle said. “Expanding these investment options to more businesses will provide opportunities for further economic growth in our state.”
Kahle recently 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 before the House Commerce and Trade Committee. Tecumseh Brewing Co. was the first Michigan business to use crowdfunding to come up with start-up costs.
“We didn’t come from money, so we really had to build from the ground up to get the funds we needed,” DeWitt said. “We owe a lot to crowdfunding. It was a great program for us. It allowed us to add 20 jobs to our community and help out with community service projects.”
Miller said: “Michigan is one of the leading states in the ‘local capital’ movement that has swept across the country over the last three years. Investment crowdfunding, where all residents can invest in local businesses, is a powerful tool for communities across the state as they work to compete in the global economy. Representative Kahle’s bill to extend Michigan’s 2013 law is critical to continue Michigan’s leadership, and we appreciate Representative Kahle’s sponsorship and support for this important legislation.”
House Bill 4305 now moves to the Senate Commerce Committee for consideration.