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State House passes business crowdfunding bill


LANSING (WKZO) -- Legislation to allow start-up companies and other small businesses to use equity crowdfunding to come up with capital is headed to the State Senate. The Michigan House this week unanimously approved the bill to allow for more equity crowdfunding. It allows companies to secure funds from investors in exchange for ownership shares in the company, and State Representative Wayne Schmidt, of Traverse City, it's an innovative way to encourage new growth and start ups. Previously, there were several state regulations that prevented the use of such financing.