Limerick: Raising Funds
More on Reg D here.
financing
Limerick: FTX
An elderly lady with old money and new / Invested her wealth with the FTX crew / They bungled and stole / Left her deep in a hole / And now the old woman, she lives in a shoe / More on digital assets.
The ABCs OF NFTs
NFTs are still hot. $37 billion of transactions in the first four months of 2022. So, what’s the story with NFTs? And how do you monetize them? We’ll get to that second question, but let’s start from the beginning. And check the glossary — on the right or below, depending on your device — for … Read more
Paycheck Protection Program Rules Revised
In an attempt to target funding to small businesses, the Biden administration has amended the rules governing the Paycheck Protection Program (“PPP”). First, only businesses with fewer than 20 employees may apply during the period from February 24 to March 2. Second, effective in early March, the formula used to calculate the amount of the … Read more
What the …? I’m Selling Securities?!
You have a new business or you’re thinking about expanding your existing business. And you think it would be great to offer some shares or membership interest in your company to an outside investor. Nothing could be easier. Right? Wrong! You may be selling securities and will need to comply with federal and state securities … Read more
Second Round of PPP Loans
A second round of Paycheck Protection Program (PPP) loans — second draw loans — will be available soon. Probably in mid-January. The criteria for the second round differs significantly from the first, so read on. The recent relief and spending bill designated about $280 billion in PPP funding for first-time eligible borrowers. Funds are also … Read more
SEC Revises ‘Accredited Investor’ Definition
If a company wishes to raise funds by selling or offering its securities it must register those securities with the Securities and Exchange Commission. However, there are numerous exemptions to this requirement to register. There are different regulatory frameworks with different requirements and limitations, including the amount of money that can be raised, the amount … Read more
New Investment Limits for Exempt Offerings
Generally speaking, if a company wishes to raise funds by selling or offering its securities it must register those securities with the Securities and Exchange Commission. However, there are numerous exemptions to this requirement to register. Although Reg D’s Rule 506 is the most widely used, there are also exemptions under Reg A, Rule 504 … Read more
Sale of Entity that Received Paycheck Protection Program Funds
If you’re buying or selling an entity – or its assets – you should be aware of a new notice from the Small Business Administration (“SBA”). If the seller has received Paycheck Protection Program (“PPP”) funds, it must notify the funds lender that the seller intends to enter into a sales transaction that would constitute … Read more
Raising Money: Title II of the JOBS Act
Until recently, new companies wishing to raise money – that had exhausted their sources from friends and family and had no access to angel or venture capitalists – needed to rely on the SEC’s Regulation A or D, regulations promulgated under the federal Securities Act of 1933. Nothing wrong with that, except that offerings under … Read more
Introduction to Crowdfunding
This post is a primer on crowdfunding for entrepreneurs and other people who are not securities lawyers. Securities I’ll start by talking a bit about securities and then about equity and non-equity offerings. Bear with me; we’ll get to crowdfunding. What is a security? The most common types of securities are stocks, bonds and notes. … Read more