SPRINGFIELD, Ill. – State Rep. Carol Sente, D-Vernon Hills, passed legislation through the House on Friday making it easier for small and medium-sized businesses to raise money to expand and create local jobs through an innovative new technique known as “intrastate equity crowdfunding.”
“Crowdfunding allows startups that lack access to the type of capital available to large corporations to promote their ideas and receive backing from investors of all sizes,” Sente said. “When we provide more avenues for businesses to raise money, it helps them to grow, spurs economic development, and creates good-paying jobs in our community.”
“Crowdfunding” is the practice of funding a project by raising money from a large number of investors. In 2015, Sente authored and passed a law that allowed Illinois businesses to raise up to $4 million in capital from non-accredited investors residing in Illinois in exchange for a stake in their business. The Sente-introduced House Bill 3791 updates the 2015 crowdfunding law to allow Illinois companies to receive crowdfunding investments from companies incorporated outside of Illinois, as well as updates other regulations to allow Illinois law to accommodate federal changes.
“Illinois has become a national leader for crowdfunding, and it is exciting to meet business owners that have been able to launch and grow successful businesses because of the opportunities it has provided,” Sente said. “I look forward to meeting more business owners in Illinois that have been able to expand because of this innovative new way to raise money.”
House Bill 3791 passed overwhelming by a count of 103-0 and now goes to the Senate for consideration.
Visit Rep Sente’s website
272-S Stratton Office Building
Springfield, IL 62706
(217) 524-0443 FAX
The Laschen Center
294 Evergreen Dr.
Vernon Hills, IL 60061
(847) 984-2206 FAX