New Securities Regs Creates New Approach to Business & CRE Capital Raises

Time to cash in and say goodbye to bank debt that hobbles your growth.

Last month’s landmark changes to the securities regulations changes the rules for obtaining capital financing in the markets. New disclosure requirements, new filing requirements and new opportunities. The days of private placements are effectively over for small and medium-sized companies and CRE developers seeking capital funding.

New construction non-recourse financing opportunities now abound.

Good News & Great News

The new regulatory construct creates the opportunity to use a laddered approach to raising capital funding. The laddered approach is founded in two important registration-exempt offering elections: Regulation Crowdfunding and Regulation A. The new Regulation Crowdfunding limit is $5 million and the new Regulation A Tier II limit is $75 million.

Imagine, capital financing as early as the project’s conceptual phase…

The laddered approach can be used to fund a business or project as early as the conceptual phase, providing the important high-risk capital for program development, then using funds raised from the Regulation Crowdfunding raise to launch the Regulation A Tier II of up to $75 million.

CRE new construction schematic phase investment capital
Structured finance for structured profit-taking and opportunity control.

In essence, the case can be made for using approximately $500,000 to $750,000 in at-risk capital contributions to launch and control a project or business having a capital base of up to $75 million. Banks better take notice. Their business model for small and medium-sized businesses is going to take a hit. Climbing a ladder never felt so good.

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