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Louisville representative to file crowdfunding legislation

Would make it easier to invest in state businesses

FRANKFORT, Ky. (Aug. 25, 2014) — State Rep. Steve Riggs (D-Louisville) said today he will file legislation to bring crowdfunding to the commonwealth, with the goal of making it easier for Kentuckians to invest in new or growing businesses within the state

handshakeRiggs noted that similar legislation went into effect last month in Indiana allowing individuals to invest up to $5,000 at a time while helping entrepreneurs raise up to $2 million through for their business. There are built-in safeguards that Riggs said his bill would have to protect investors from fraud or if a business plan falls through.

According to the National Conference of State Legislatures, 16 states have legalized equity crowdfunding since 2011, and legislatures in a more than a half-dozen others have considered similar bills.

The Kauffman Foundation Index recently said Kentucky was the fifth-best state for entrepreneurial activity over the last two years. In January the U.S. Bureau of Labor Statistics said Kentucky led the nation in new-business creation during the last three months of 2013.

According to the State Entrepreneurship Index, released today, Kentucky jumped from 49th to fourth among states for its ability to create businesses.

Riggs said he will pre-file the legislation this week, and it will be discussed during the interim and when the General Assembly convenes the 2015 Regular Session in January.