Sen. Cullerton's bill gives small businesses tools to succeed
U.S. Sen. Tom Cullerton's (D-IL) legislation, designed to help make Illinois more amenable to businesses by implementing intrastate crowdfunding exemptions, was signed into law on Wednesday.
“Small businesses are the backbone of our economy," Cullerton said. "If we want to continue to grow as a state, we need to continue to give small businesses the tools to succeed. This initiative will create a vital partnership between investors and small businesses to spur economic development in our communities.”
Crowdfunding aims to fund a project or venture by raising small amounts of money from large numbers of people. In return, investors receive small ownership interest in the venture.
“We need to continue to embrace innovative and fresh business practices to promote job creation in Illinois,” Cullerton said. “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.”
The bill's exemption will allow residents to directly invest in Illinois small businesses online.
The bill will go into effect Jan. 1, 2016.