Crowdfunding encourages community buy-in—figurative and literal—and can fill critical gaps in access to capital for businesses and projects.

The League has championed community crowdfunding as a tool for local placemaking and economic development since 2013. That year, we supported Michigan’s passage of the MILE Act (PA 264), becoming one of four states to authorize intrastate crowdfunding.  Known as “investment crowdfunding,” it is a powerful tool for using local capital to support and grow local businesses.

With the advent of investment crowdfunding, every Michigan resident can now have a direct role in growing their local economy, supporting entrepreneurs, and creating jobs.

Private, non-accredited investors comprise 97 percent of the population, and they can now invest up to $10,000 per company, per year, in businesses incorporated or organized under Michigan law. (Accredited investors may invest any amount.) These crowdfunding investments can be used to leverage additional capital from traditional banks or financial institutions.

Online platforms like Patronicity specialize in raising money for civic and community-based initiatives. Patronicity partners with the Michigan Municipal League on a crowd-granting program called Public Spaces, Community Places (PSCP), which supports public space projects such as plazas, green spaces, public amenities, farmers markets, and other place-based improvements. Qualifying communities can raise local funds for their project and receive a matching grant from the Michigan Economic Development Corporation (MEDC) of up to $50,000.

For more information on the program and how it works please visit the Public Spaces Community Places page.