Real Estate Crowdfunding Platform Small Change Plans Opportunity Zone Fund

Real estate crowdfunding platform Small Change is planning to launch an Opportunity Zone fund enabling access to investments in the newly minted tax-advantaged designation.

As explained by the IRS:

“Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in distressed communities throughout the country and U.S. possessions by providing tax benefits to investors who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an appropriate investment in a Qualified Opportunity Fund and meeting other requirements.”

Further information on Opportunity Zones is available here.

As one would expect, tax incentives can drive investment returns higher. Multiple online capital formation platforms are offering, or planning to offer, access to investments in these Zones. Small Change, a real estate investment platform, is unique in the fact it uses Reg CF, a crowdfunding exemption that allows any investor to participate in a security offering – not just accredited individuals.

According to the Small Change website, the company will combine “three powerful concepts in its opportunity zone offerings:”

  • the new tax benefits available for investments in qualified opportunity zone funds
  • the Small Change Index, our proprietary method for identifying projects that are socially responsible and benefit cities and communities, and
  • the ability for anyone over the age of 18 to invest.

Small Change is one of the only real estate crowdfunding platforms to use Reg CF. It will be interesting to see what Small Change offers to investors under the Opportunity Zone exemption.


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