If there is one thing that makes business professionals of all kinds nervous, it’s the subject of obtaining capital financing, yet it consumes considerable time, money and angst. The recent changes in the securities laws that went into effect this January threaten to make capital formation a whole lot easier, if not a whole lost less confusing in some cases.
Business Capital Financing Made Easier
For businesses, the process and registration exemptions, made available under the new regulations, provide an incredible new level of opportunity that can be utilized on multiple levels to access capital financing with a potential higher degree of surety of outcome than would otherwise be possible.
We compared the probability of success odds attending the commercial bank loan, local bank loan, credit union loan, SBA-insured loan and venture capital financing segments and found the new opportunities offer a potentially higher degree of surety of outcome. This fundamental dynamic threatens to fundamentally change the financial services industry and nature of operations of the capital markets on a broad basis.
Among other provisions, the new $5 million crowdfunding limitation under the revised Rule 4(a)(6) registration-exemption provides a significant degree of financial investment leverage that was not possible under the previous crowdfunding regulations to potentially leverage and control business capital asset price tags of up to $20 million.
CRE Capital Financing Made Easier
For commercial real estate developers and promoters, the new securities regulations are intended to specifically address their lack of capital access by providing some important new opportunities that have the potential to dramatically change the probability of success odds in their favor.
New Rules Create Better Outcome Opportunities
The regulatory changes include important new rules that allow, under strict guidelines, to broadcast advertise the fact the CRE developer has a new deal and will be looking for capital. Furthermore, the construct of the regulations doesn’t constrain the timing, so this means CRE development deals may go into the market as early as the conceptual stage (versus completion of pre-construction phase activities as was the case in the past).
Get The Facts Before You Start
It pays to know how you can do this, so take the time to go over the new regulations before you launch the next transaction, as the odds may ever be in your favor.