On December 30, 2013, Michigan became one of only four states (and the most innovative) in the country to pass intrastate investment crowdfunding legislation. Known as the Michigan Invests Locally Exemption (MILE) law, it is structured to provide a return on investment, either through an ownership stake (equity crowdfunding) or through a debt position. Investors with a debt position are provided a pre-determined rate of return that can be structured in a variety of ways within the investment offering. For example, a local investor invests $5,000 in a new brewery on Main Street and, with other investors, receives a proportional amount – based on investment percentage – from 5% of the brewery’s revenue each month until the investor is repaid $7,500.
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