Businesses can use crowdfunding sources for funds

The new Illinois law comes with a catch.

Published 07/30 2015 06:09PM

Updated 07/30 2015 06:09PM

Businesses in Illinois have a new way to raise money.
 
They can take advantage of crowdfunding like a lot of people do for personal reasons. The law signed by Governor Bruce Rauner enables businesses to use the internet to obtain investors.
 
They can collect up to $4 million. That's the highest amount in the country. Any money you provide isn't a gift and you would own a stake in the company.
 
Supporters say it makes the state more attractive to businesses. 
 
"Illinois has the most competitive regulations so we actually are the most competitive state right now making it easier for people to invest and crowdfunding," said Judy Willard of the Illinois Policy Institute. 
 
The new law takes effect January 1st.

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