Illinois Governor Rauner Signs New Intrastate Equity Crowdfunding Bill into Law

New crowdfunding legislation means more available capital forIllinois entrepreneurs and small businesses, resulting in more Illinois jobs being created by these entrepreneurs and small businesses

By Robert Hoskins

Chicago, Illinois – Governor Rauner has signed intrastate equity crowdfunding into law.  This new vehicle for raising capital empowers the small business community by allowing business owners and entrepreneurs to raise capital from a large number of people.  In exchange, investors receive a small equity interest in the business.

Illinois Equity Crowdfunding Intrastate Exemption

“Intrastate equity crowdfunding can be a game-changer for the small business community, it will allow business owners and entrepreneurs to invest in, and empower one another.  Many states, including Wisconsin, Indiana and Michigan, have already passed legislation allowing companies to raise money in this way.  Passing this legislation has ensured Illinois businesses are able to compete on a level playing field with those in neighboring states,” said Elliot Richardson, Small Business Advocacy Council, CEO.

The SBAC and a coalition of chambers and business groups spearheaded a grass-roots effort to bring intrastate equity crowdfunding to Illinois.  Through the power of critical mass, the small business community worked with legislators and moved this important legislation.  “This is a tremendous step forward for Illinois small businesses and entrepreneurs. This will mean more available capital forIllinois entrepreneurs and small businesses, resulting in more Illinois jobs being created by these entrepreneurs and small businesses,” said attorney, Anthony J. Zeoli of Freeman & Peters LLP.

State Rep. Carol Sente, D-Vernon Hills, issued this statement, “As Co-Chair of the Small Business Owners Caucus in Springfield and primary bill sponsor, I’m thrilled Governor Rauner signed our Crowdfunding bill!  I know the business community has been anxious to see this legislation passed.  It has been a sincere pleasure to work with the SBAC on this and other measures over the years.  Illinois has so much to offer small businesses and today marks a milestone in finding new ways for small businesses to raise capital.”

# # #

Advertisement

National Seed-Stage Business Accelerator for Real Estate Startups, elmspring, Prepares to Take Advantage of Illinois HB 3429 to Offer Equity Crowdfunding Deals in Chicago

The elmspring accelerator mentors companies such as PeerRealty, which provides a real estate equity crowdfunding platform that soon will be providing a secondary market for crowdfunded assets and private investment offerings

By Robert Hoskins

Chicago, Illinois – The elmspring accelerator applauds the Illinois state legislature for passing HB 3429, a crowdfunding state exemption bill that will allow Illinois small business owners and entrepreneurs the opportunity to raise funds through intrastate equity crowdfunding. The bill has a particular interest to elmspring program participants such as PeerRealty, because they are a real estate crowdfunding platform that will soon be providing a secondary market for crowdfunded assets and private investment offerings.

elmspring business accelerator in Chicago, Illinois

According to Elliot Richardson, CEO and President of SBAC, “The passing of HB 3429 allows Illinois to take much needed steps to funnel investment dollars back into the state. Intrastate equity crowdfunding makes it possible for small business owners and entrepreneurs to raise money from one another and invest in Illinois businesses, thus supporting the very communities they live in.”

Thomas Bretz, Co-Founder of elmspring, agreed, “We applaud the efforts of the SBAC in urging the Illinois General Assembly to pass HB 3429. The bill will immediately impact the success of our recent graduating startup, PeerRealty, but also open doors for other future participants with similar business models. Building healthy, innovative and competitive businesses is what elmspring is all about, and the SBAC fully supports that mission.”

The elmspring accelerator was founded by top real estate professionals and offers participants exclusive access to real estate connections and resources. Select start-up companies are provided with seed capital, office space and opportunities to beta test and refine sales strategies. Participants also demonstrate their products to a host of serious investors at the culmination of the three-month elmspring session. The accelerator is now accepting applications for its third Chicago session until June 19, 2015. Please visit elmspringaccelerator.com for more information.

# # #