Careful With That Business Plan – The Feds Are Watching

The landmark changes in the securities regulations and rules governing disclosure items enacted by the Securities & Exchange Commission (SEC) last week have created an unprecedented level of capital financing access for CRE developers, entrepreneurs and businesses. The impact of these changes cannot be overstated. Having said, there are important changes that could land you and your business plan or pitch deck in hot water – that means you better get comfortable with making sure everything in the plan or pitch deck is completely factual and within the new rules framework – jiffy quick.

Rule 206 private placement offering solicitations and advertising compliance
With Opportunity Comes Responsibility for Compliance.

The SEC now requires disclosure to the SEC of certain pre-offering communications regarding certain registration-exempt private placement offerings, and that means you may be required to file a copy of a pitch deck and/or business plan with the SEC on Form C, Form D or Form 1-A in certain circumstances. Release 33-10884 from the SEC is a capitalist’s dream in many respects but compliance is no joke.

SEC rule 241 disclosures, advertisements, securities offerings, due diligence, compliance
More Opportunity for More Financial Investment Leverage as Early as Pre-Construction.

More than 19 rules were changed, a bunch of new rules were created and big changes were made to Regulation A, Regulation CF (4(a)(6) crowdfunding offerings) and Regulation D that create huge market opportunities, but you cannot do this in a vacuum. You need to consult with your legal advisor and you need to look at your due diligence disclosures, communications and rethink how you want to go forward in this new capitalist utopia the government has allowed us to create.

business accelerator program support for securities private placement offerings

Leave a Reply