President Obama signed the JOBS (Jumpstart Our Business Startups) Act in 2012, authorizing interstate equity crowdfunding. This created immense excitement among the entrepreneurial and small business communities. Unfortunately, over two years later, the Securities and Exchange Commission has failed to write the regulations for interstate equity crowdfunding. For that reason, several states have taken proactive measures to help get capital in the hands of small business owners and entrepreneurs through intrastate crowdfunding.
While interstate crowdfunding is the home run small businesses and entrepreneurs are looking for, Illinois can immediately help its small business community by following the lead of its neighbors by allowing intrastate equity crowdfunding. Intrastate crowdfunding not only provides business owners and entrepreneurs greater access to the capital needed to grow and thrive, but it will also foster investment in local communities.
The Intrastate Equity Crowdfunding Bill
The SBAC has tendered an intrastate equity crowdfunding bill through the appropriate channels in Springfield and will work with legislators to ensure the final legislation incorporates the best elements of intrastate crowdfunding bills passed by other states. We look forward to working with fellow business organizations and forward-thinking policymakers to promptly bring intrastate crowdfunding to Illinois. Illinois is replete with innovative business owners and entrepreneurs looking to grow and create jobs. The Illinois legislature must demonstrate that same innovative spirit and pass legislation permitting equity crowdfunding.
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Elliot Richardson is president of the Small Business Advocacy Council of Illinois, representing nearly 1,000 businesses across the Chicagoland area.