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Equity crowdfunding bill would create path for smaller funders

By Chris Gautz , Chris Miller, Adrian’s downtown development authority and economic development coordinator, will testify Wednesday before the House Commerce Committee for a bill allowing equity crowdfunding for smaller investors. There are plenty of entrepreneurs with good ideas to fill any number of the vacant storefronts in downtown Adrian, but there’s always one big problem standing in the way. “It’s the story you always hear: ‘We just can’t find the money to do it,’ ” said Chris Miller, the city’s downtown development authority and economic development coordinator. Since the recession, traditional lenders have tightened their loan standards, and many startups and even some existing businesses looking for capital to expand cannot get the green light, he said. One newer idea Miller thinks has great potential for not just the city, but the state, is equity crowdfunding. It is different than using a website like Kickstarter.com where people can invest in a business, but in order to get around federal regulations, the investment is considered a donation. In return, the investor receives gifts of some kind, rather than equity in the company. Equity crowdfunding was included in the JOBS Act signed in 2012 by President Barack Obama, which brings together social […]

Equity crowdfunding bill would create path for smaller funders: CrowdFund Beat.

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