EAU CLAIRE, Wis. (WEAU) - If you've ever thought of starting your own business you've probably realized finding the money to get it off the ground isn't easy.
New legislation making its way through the Senate could open up new avenues for entrepreneurs.
The measure would create an exception in the state law to allow what's called “crowd funding” for small businesses.
Sites like Kickstarter are popular spots now for small projects to get off the ground.
“I started looking into the Kickstarter and I was like, woah we could really talk to the community. If we could get each person from the community to donate $5 we could have a comic book about the downtown Eau Claire by just going through Kickstarter,” small business owner Eli Bremer said.
For Bremer Kickstarter was an avenue to get his idea for a comic book about downtown Eau Claire off the ground.
“Putting it out on Kickstarter is a great way for the community to get their hands involved in what they want to see and a great way for the entrepreneur to know if it’s something that will go well,” Bremer said.
Now the state of Wisconsin is considering using the concept of crowd funding -- meaning a bunch of people paying to invest in small business.
“It’s an interesting opportunity for the right person both for investors and people who are seeking funding,”
Karman Briggs with Western Dairyland said.
Briggs helps businesses launch locally through Western Dairyland's business center. She says it can be harder to get a loan these days, but businesses could find it easier if crowd funding became an option.
Under the bill businesses could raise up to $1 million annually without an audit or up to $2 million with an audit.
“Being able to extend that cap for what you can give in peer to peer lending i think its kind of exciting for both the business owner and the lender,” Briggs said.
But the concept does come with a downside.
“If you get all of this money and don't know how to run a business there are steps you need to realize because yes you may have a great concept but you should still have a business plan,” Bremer said.
There are several sites out there that bring investors and borrowers together. You can find links to those below.