A quick update on Michigan’s MILE Act – Intrastate Equity Crowdfunding….
I have written about previously that the State of Michigan has been slow to propose and implement rules to provide guidance on the practical application of Intrastate Crowdfunding.
Today, Michigan’s Department of Licensing and Regulatory Affairs (LARA) issued a posting on its website: “LARA Offers Tips on Intrastate Equity Crowdfunding; 2013 PA 264 streamlines process for Michigan investors to invest in Michigan’s small businesses” check out the press release here
The posting acknowledges the advantages of this new legislation, indicating that it allows local Michigan businesses “to sell an interest in its business to non-accredited investors without having to register these interests as securities. The new law provides a streamlined procedure to allow Michigan investors to invest in Michigan small businesses; in turn, allowing these businesses to raise capital.”
However, the posting doesn’t so much seem to provide any additional guidance, but merely caution to prospective investors and issuers.
“Small businesses must be aware of the requirements for qualifying for the exemption from registration so they don’t run afoul of federal and state securities laws.”
LARA’s posting seems to point to the fact that Michigan and the Federal government are waiting for clarity.
As the post goes on to state:
“The Jumpstart Our Business Startups Act of 2012 (JOBS Act) requires the SEC to promulgate rules on crowdfunding. The SEC published its proposed rules on October 23, 2013 for public comment, but have not yet been finalized.”
Looks like to some degree we are all waiting on the SEC for guidance….
News in Local Crowdfunding…
Local West Michigan Investment Company Loquidity‘s CEO Jesse Clem will be speaking on Crowdfunding: “Community Impact Investing” here
It’s great to see local Social Entrepreneurs at work!
Questions? Comments?
email: Jeshua@dwlawpc.com
Purpose Driven General Counsel 