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.
