TCFloor5.19.15SPRINGFIELD- New businesses struggling to raise money to take their companies to the next level will soon have another method to find funding.

State Senator Tom Cullerton’s (D-Villa Park) initiative to make Illinois more business-friendly by instituting intrastate crowdfunding exemptions was signed into law today.

“Small businesses are the backbone of our economy. If we want to continue to grow as a state, we need to continue to give small businesses the tools to succeed,” said Cullerton. “This initiative will create a vital partnership between investors and small businesses to spur economic development in our communities.”

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.

Cullerton hopes this measure will further encourage local investment and economic development opportunities.

“We need to continue to embrace innovative and fresh business practices to promote job creation in Illinois,” said Cullerton.  “Intrastate crowdfunding gives businesses the resources to find financial support without accumulating loads of debt, while giving the average person an opportunity to invest in companies they support.”

House Bill 3429 creates an Illinois intrastate exemption, which allows Illinois residents to directly invest in Illinois small businesses online.  Currently, 15 states have already passed similar legislation, including neighboring states such as Indiana, Wisconsin and Michigan.

House Bill 3429 was signed into law on July 29 and goes into effect on January 1, 2016

Category: Press Releases