Skip to content-main content

Blog

From the Rooftop, March 26, Reg A+ Rules Released, Special Edition

Blog

From the Rooftop, March 26, Reg A+ Rules Released, Special Edition

By: Steve Sadler, CEO, Allegiancy

March 26, 2015

US Property Crowdfunding Platforms to Benefit from Regulation A+

SOURCE: INVEZZ

Last year, about $10.4 billion worth of investments in the real estate world were made via property crowdfunding. And this new phenomenon is only set to grow stronger, with many suggesting that investments this year could double the amount seen in 2014.

That estimate doesn’t appear to be so hard to reach when you consider the amount of property crowdfunding platforms that are already available – and the ones that are poised and waiting in the wings to launch. With more and more interest being garnered in the area, investors and companies alike are taking advantage of the newest way to invest in property.

And it seems as though US property crowdfunding platforms are now set to take advantage of a new set of rules relating to Title IV of the Jumpstart Our Business Startups (JOBS) Act, otherwise known as Regulation A+ (Reg A+). The US Securities and Exchange Commission (SEC) voted unanimously yesterday in favour of adopting a rule set designed to help small businesses raise capital through smaller and medium-sized public stock offerings. The new rule implemented by the SEC will raise the amount of money that companies can generate in Reg A+ stock deals from $5 million to $50 million annually.

This ruling will give smaller companies the opportunity to grow at a much faster rate. Asset management company Allegiancy, plans to be one of the first businesses to offer $20 million in preferred equity securities under the new Reg A+. There are an estimated 27.1 million private companies in the US whose ability to access capital markets will be made much easier.

READ THE COMPLETE REPORT HERE.

 

SEC: Startups Can Now Raise $50 Million in ‘Mini IPO’

SOURCE: ENTREPRENEUR

The SEC on Wednesday approved game-changing final rules in the implementation of Title IV of the JOBS Act, known as “Regulation A+,” which will allow small businesses and startups to raise up to $50 million from “the crowd.”

This little-known provision of the JOBS Act will allow a startup company or emerging business to hold a “mini IPO” from the general public, not just accredited investors, and should be a complete game-changer for the way businesses are funded.

When Congress passed the JOBS Act in April 2012, Regulation A+ was an attempt to fix Regulation A, a rarely-used provision of federal law that allowed companies to raise up to $5 million in a public offering. Regulation A was a bust because it required the company to register its offering in each state where it was to be sold. The cost of complying with each state’s “Blue Sky Law” was exorbitant, compared to more commonly used laws such as Regulation D that allowed a company to raise the same amount of money, or more, without having to pay for expensive state-by-state compliance.

Under the SEC’s new rules for Regulation A+, the amount that could be raised increases to $50 million and the need for state compliance has been eliminated. More importantly, Regulation A+ allows those funds to be raised from the general public, not just accredited investors like with Regulation D offerings.

READ THE COMPLETE REPORT HERE.

 

Real Estate Firms Eye Forthcoming Rules of Regulation A+

SOURCE: CROWDFUND INSIDER

Later this morning the Securities and Exchange Commission will be releasing final rules for Title IV of the JOBS Act otherwise known as Regulation A+. While the details are not yet know, the expectations are for proposed rules to allow raised of up to $50 million without having to go through the state review process.  Old Reg A was killed by the laborious state review process and Congress set out to fix the issue.  Investment crowdfunding platforms of all types may benefit from this new exemption allowing platforms to scale and become more profitable.  One sector that may quickly benefit are Real Estate crowdfunding platforms – one of the hottest segments in crowdfunding today.

In a release published yesterday, Allegiancy, a Richmond based real estate asset manager, indicated they were already ready to go forward leveraging Reg A+. Steve Sadler, CEO of Allegiancy, said his company will be one of the first to become an active participant in the new Reg A+ marketplace.

Sadler said, “Allegiancy is poised to lead the nation in Reg A+ –a revolution that will help strengthen small businesses and usher in a new era for investors.”

Fundrise, a real estate crowdfunding firm that launched using old Reg A, may be poised to take advantage of the new rules quickly as well.  Certainly all real estate platforms will be eyeing final rules.

After rules are announced they are not actionable immediately. The rules must first be published in the Federal Register and then go under a waiting period of 60 days (or more).  We will know more soon enough.

READ THE COMPLETE REPORT HERE.

 

SEC Unanimously Approves Final Rules for Reg A+

SOURCE: LAW 360

In a unanimous vote Wednesday, the U.S. Securities and Exchange Commission approved one of the final mandates of the 2012 Jumpstart Our Business Startups Act, providing new registration exemptions for small businesses and startups to raise up to $50 million in new capital over a 12-month period.

The new rules, also referred to as Regulation A+, will update and expand the seldom-used Regulation A in line with the requirements of Title IV of the JOBS Act to provide for two tiers of qualified offerings: one at…

READ THE COMPLETE REPORT HERE.

 

SEC to Take Baby Steps with Vote on ‘IPO Lite’ Crowdfunding Idea

SOURCE: BIZ JOURNALS

Nearly three years after Congress promised to open a spigot of new financing to startups, securities regulators are finally ready to allow one of two anticipated new fundraising methods to go live.

In a meeting Wednesday, the Securities and Exchange Commission will vote on rules detailing what’s being called “Regulation A+,” a new equity selling path that’s been widely described as an ” IPO Lite.”

Details aren’t yet certain pending the vote, but observers expect the rules to allow young companies a way to raise $50 million from regular people ”and to allow those stakes to be traded freely” without having to navigate the patchwork of state securities laws or formally registering with the SEC. This is separate from the more revolutionary Title III of the JOBS Act, a section that would allow startups at all ages to advertise equity investment deals of almost any size…

READ THE COMPLETE REPORT HERE.

 

Virginia Company to Lead Nation in Using Revolutionary Regulation A+ to Raise Capital, Offer More to Investors

SOURCE: ALLEGIANCY

Allegiancy, a Virginia commercial real estate asset manager, is a leader in the national revolution that will help strengthen small businesses, create new jobs and usher in a new era for investors.

As part of the 2012 Jumpstart our Business Startups (JOBS) Act, the U.S. Securities and Exchange Commission (SEC) announced today the new rules for Regulation A+ (Reg A+).

Allegiancy immediately announced that it will file with the SEC to offer $30 million to $50 million in preferred equity securities under the new rules as soon as the rules go into effect.

READ THE COMPLETE REPORT HERE.

Recent Blog Posts:

Blog

iGlobal Forum to Host 4th Real Estate Crowdfunding Summit

iGlobal Forum is pleased to present the 4th Real Estate Crowdfunding Summit, taking place in Los Angeles on Thursday, June 23. Allegiancy CEO Steve Sadler is among the speakers, featured on a

READ MORE

Blog

Why George Washington and Henry Ford would have loved crowdfunding

George Washington is known as America’s `First Entrepreneur’ and I am fully confident he would have been a huge proponent of crowdfunding and the new Reg A+ rules — also

READ MORE