- Published: Thursday, January 19, 2017 12:30 PM
VILLA PARK- Illinois crowdfunding is up and running thanks to a law passed by Villa Park Democrat Tom Cullerton.
Cullerton is excited to announce Illinois crowdfunding is coming out strong in 2017 with the start of three local businesses now conducting intrastate crowdfunding through Illinois’s first crowdfunding portal, VestLo.
“Small businesses are essential to growing our economy and creating new jobs in Illinois,” Cullerton said. “This is a new opportunity for Illinois businesses to grow and stimulate our economy.”
In 2015, Cullerton passed legislation to encourage local investment and would create new jobs in Illinois. House Bill 3429 creates an Illinois intrastate exemption allowing Illinois residents to directly invest in Illinois small businesses online.
Crowdfunding is funding a project or venture by raising many small amounts of money from a large number of people. In exchange for funding, investors receive a small ownership interest in the enterprise.
It took 10 months to work through administrative rules. HB 3429 allows Illinois businesses to raise up to $4 million per year from Illinois investors through debt or equity offerings. Illinois’ law is one of the highest intrastate crowdfunding standards in the nation and well above the federal $1 million cap.
Cullerton states this is a new way of doing business in Illinois.
“The only way to grow our economy is to promote business friendly policies,” Cullerton said. “This new model will not only benefit Illinois, but local communities as well.”
Cullerton encourages local residents and businesses to look into crowdfunding as an option to expand existing businesses and starting new ones.
Vestlo is a leader in investment crowdfunding in Illinois, investing in three Illinois businesses so far Native Sons, CrossTown Fitness and Cardfrenzy.