SEC: Title III, Regulation Crowdfunding Fact Sheet (Document)

SEC Securities and Exchange CommissionHighlights of the proposed rules by the Commission for Title III of the JOBS Act that legalizes retail equity crowdfunding.

Companies may raise $1 million during a 12 month period with non-accredited investors able to invest $2000 or 5% of their annual income (whichever is less), or 10% of their income or aggregate net worth if it exceeds $100,000 (again the lesser of the two).

Notably the audit requirement has been removed.

Securities purchased in a crowdfunding transaction generally could not be resold for one
year.

The new rules and forms are said to be effective 180 days after they are published in the Federal Register.

 

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