{"id":390,"date":"2020-08-04T19:48:46","date_gmt":"2020-08-04T23:48:46","guid":{"rendered":"http:\/\/www.new.waltercounsel.com\/blog\/?p=390"},"modified":"2020-09-24T16:11:06","modified_gmt":"2020-09-24T20:11:06","slug":"raising-money-title-ii-of-the-jobs-act","status":"publish","type":"post","link":"https:\/\/waltercounsel.com\/?p=390","title":{"rendered":"Raising Money: Title II of the JOBS Act"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"329\" height=\"228\" src=\"https:\/\/waltercounsel.com\/defiant\/wp-content\/uploads\/2020\/09\/173p.jpg\" alt=\"\" class=\"wp-image-550\" srcset=\"https:\/\/waltercounsel.com\/wp-content\/uploads\/2020\/09\/173p.jpg 329w, https:\/\/waltercounsel.com\/wp-content\/uploads\/2020\/09\/173p-300x208.jpg 300w\" sizes=\"auto, (max-width: 329px) 100vw, 329px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Until recently, new companies wishing to raise money \u2013 that had exhausted their sources from friends and family and had no access to angel or venture capitalists \u2013 needed to rely on the SEC\u2019s Regulation A or D, regulations promulgated under the federal Securities Act of 1933. Nothing wrong with that, except that offerings under Regs A and D need to satisfy a whole slew of conditions, some of which are expensive and some of which are just plain annoying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Congress recognized the limitation in offering possibilities and passed the JOBS Act two years ago as a means of expanding the universe of options. The rules and regulations needed to effectuate the Act are (ever so) slowly being adopted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While we\u2019re waiting for the SEC to issue final regulations for equity crowdfunding, Title III under the JOBS Act, and for Reg A+, a liberalization of Reg A, there are other possibilities. Companies may want to consider raising funds under Title II of the JOBS Act. Compared to traditional Reg D and Reg A offerings, Title II or Rule 506(c) offers a streamlined and cheaper method of raising money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What\u2019s good about Rule 506(c)?<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>There is no limit on the amount that can be raised<\/li><li>General solicitation and advertising is permitted<\/li><li>No pre-sale disclosure, including financial information, is required<\/li><li>No pre-sale approval is required by any governmental agency<\/li><li>Usually, no ongoing reporting is required<\/li><li>State security laws are pre-empted (for the most part)<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">But what\u2019s not so good about the Rule?<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sales may only be made to accredited investors<\/li><li>The issuer must take reasonable steps to verify that each investor is an accredited investor<\/li><li>Certain \u201cbad actors\u201d may not participate in the sales<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you need (or want) money and you\u2019re able to limit your sales to accredited investors, a Rule 506(c) offering&nbsp;\u2014 equity crowdfunding light?&nbsp;\u2014 should be seriously considered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Please feel free to contact me, if you have any questions.<\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\">Alan N. Walter<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Until recently, new companies wishing to raise money \u2013 that had exhausted their sources from friends and family and had no access to angel or venture capitalists \u2013 needed to rely on the SEC\u2019s Regulation A or D, regulations promulgated under the federal Securities Act of 1933. Nothing wrong with that, except that offerings under &#8230; <a title=\"Raising Money: Title II of the JOBS Act\" class=\"read-more\" href=\"https:\/\/waltercounsel.com\/?p=390\" aria-label=\"Read more about Raising Money: Title II of the JOBS Act\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,7,6],"tags":[21,22],"class_list":["post-390","post","type-post","status-publish","format-standard","hentry","category-crowdfunding","category-financing","category-securities","tag-jobs-act","tag-reg-d"],"_links":{"self":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=390"}],"version-history":[{"count":3,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/390\/revisions"}],"predecessor-version":[{"id":565,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=\/wp\/v2\/posts\/390\/revisions\/565"}],"wp:attachment":[{"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/waltercounsel.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}