Governor Walker signs Crowdfunding Bill

Wisconsin is one of the first states in the nation to allow investors to purchase equity in a company via crowdfunding. The Greater Madison Chamber supported the bill which passed quickly through the Wisconsin Legislature with strong bi-partisan backing.

The legislation creates a new class of investor titled, “certified investor,” defined as a Wisconsin resident with a minimum net worth of $750,000 or minimum annual income of $100,000.  In addition, it creates new securities exemptions related to transactions originating from not more than 100 Wisconsin residents, excluding institutional, accredited and certified investors.  To qualify, the issuing business must have its principal office in Wisconsin and the majority of its full-time employees must work in the state.  Business could raise up to $2 million with an audit and up to $1 million without one.

Certain disclosures must be made to these investors and purchasers are required to acknowledge that investment losses may exceed the total investment under some circumstances.  In addition, stock purchases for Wisconsin residents who are not accredited, certified or institutional investors are capped at $10,000.

LGBT, Greater Madison Chambers Partner to Ask Rep. Pocan to Help LGBT Angel Investors

MADISON – The Wisconsin LGBT Chamber of Commerce and the Greater Madison Chamber of Commerce have joined together to advocate for a change to a Security and Exchange Commission (SEC) rule to provide an equal opportunity for LGBT investors to participate in startups.

In a joint letter sent to Representative Pocan this afternoon, the Chambers ask the congressman to urge the SEC to revise Rule 501 of Regulation D so that individuals in civil unions, domestic partnerships, and similar relationships can have the same right and opportunity to qualify for accredited investor status as married persons have.

“We understand the important role that startups have to play in creating jobs and new opportunities,” said Wisconsin LGBT Chamber of Commerce Executive Director Jason Rae. “We want to ensure that all individuals are given an equal opportunity to invest and help grow our nation’s economy.”

“Discrimination of any kind impedes growth,” said Greater Madison Chamber of Commerce President Zach Brandon. “This simple revision sends the right message. Whether you are a startup investor or a founder, your financial investment will be treated equally under the law.”

The Greater Madison Chamber of Commerce and the Wisconsin LGBT Chamber of Commerce look forward to working with Congressman Pocan to ensure that this rule is addressed as efficiently as possible. A copy of the letter is attached to this release.

The Greater Madison Chamber of Commerce has more than 1,300 members, and the Wisconsin LGBT Chamber of Commerce, represents more than 100 LGBT-owned and allied businesses and organizations from around the state.

Contact:
Jason Rae, (414) 678-9275, jason@wislgbtchamber.com
Jo-ell Carson, (608) 443-1952, jcarson@greatermadisonchamber.com

Click here for an electronic copy of the press release.
Click here for an electronic copy of the letter to Rep. Pocan.

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Apprenticeships Build Career Pathways

Apprenticeship programs are a great way for businesses to partner with employees who learn hands-on skills as they build career pathways.  The Greater Chamber of Commerce partners with the Madison Metropolitan School District for placement of high school students through the state’s Youth Apprenticeship Program and supports Wisconsin Senate Bill 336/Assembly Bill 402 which would increase state funding for the program by $500,000 annually.

The Chamber also supports Senate Bill 335/Assembly Bill 403 which would reimburse 25 percent of the apprenticeship tuition and fee for employers or students participating in an apprenticeship program.  Reimbursement would be capped at $1,000 per apprentice.

Increased funding for apprenticeships may enable more employers to participate in the program.

Governor Signs Venture Capital Bill

MILWAUKEE – Last Week, Governor Walker signed Act 41, providing much-needed investment capital support for early-stage Wisconsin companies.

Act 41 makes the state a partner in a larger “fund of funds” that matches the state’s $25 million investment, set aside in the 2013-15 state budget, with at least $50 million in private investment.

Chamber President Zach Brandon praised the bipartisan effort, saying it will make Wisconsin more competitive at fostering entrepreneurial activity and converting new ideas into sustainable businesses and jobs. With this more competitive venture capital program in place, Wisconsin is well-positioned to help companies start, stay, and grow.

Business and Labor Agree on Madison TIF Reform

Unified in support of needed reform to Madison’s Tax Incremental Finance (TIF) policy, the Greater Madison Chamber and the Building and Construction Trades of South-Central Wisconsin issued a joint letter to Mayor Soglin and Madison Alders supporting policy revisions which will grow the city’s property tax base.

Although the existing TIF policy has successfully increased value throughout the city, research also shows that Madison’s created value is lower relative to its tax base compared to neighboring municipalities. Further, Madison’s relative use of TIF has declined, yielding conservative investments within the city at a time when ambitions to redevelop areas of Madison are high. Increased flexibilities within the proposed policy include removing the equity participation payment for profitable projects and modifying the conservative assumptions used to evaluate projects, including the “50% rule” that prohibits more than 50% of the new tax increment generated from being available to the project as gap financing. Further, the policy’s amended “but for” standard, which states that but for city assistance, the project would not otherwise occur, allows for additional competitive factors to be considered for employment-oriented projects.

The EDC’s proposed policy represents a balance of effective and competitive TIF usage, while also providing public protections and discussion to ensure that taxpayer dollars are used prudently and strategically.

Madison’s TIF Policy Review Ad Hoc Committee next meets on August 1 to compare the existing policy and proposed changes and determine their next steps.