The Senate unanimously passed HB 4996, the crowdfunding legislation, today! All that is left for this to become law is for the House to concur (since it was a house originated bill) and a signature from the governor. We are an arm’s reach away from being able to assist a segment of our economy that will prove to be huge economic drivers, those new small businesses and those wishing to expand.
HB 4996, a creative approach to economic development, will allow the sales of securities to an unlimited number of non-accredited investors, provided the issuer registers with the State of Michigan. Any Michiganders who do not fit the federal definition of an accredited investor are given the opportunity to support their local entrepreneurs, existing small businesses, and real estate investments.
Additionally, here are a few documents with information on crowdfunding to help get you thinking if you are looking to start something like this in your community. These documents were prepared by students in U of M’s Ford School of Public Policy who have done extensive research on this. The first is a document for local investors (crowdfunding_investors) and the second for local businesses (crowdfunding_businesses).
Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at email@example.com or 517-908-0305.