Legal Blog

Crowdfunding is coming…so we’re told.

Ever since President Obama signed the 2012 JOBS Act into law, we’ve been waiting for the SEC to publish crowdfunding rules to implement the law. We’re still waiting, but the SEC has loosened the reins a little bit by lifting the ban on general solicitation. Now, if you are looking to raise money for your company, you can advertise the sale of stock to the general public. This is a major change, but comes with new restrictions. Most prominent among the new restrictions is the requirement that all purchasers of any stock that has been advertised publicly be “accredited” (i.e. meet certain minimum asset or income tests) and, more importantly, that you, as the seller, have verified that all of the purchasers meet the asset or income tests. Crowdfunding is coming…so we’re told.If you are thinking about raising funds through an offering of securities (either debt or equity), please contact us and we can help you do so in a manner that assures you that neither the SEC nor your investors will greet you with an unwelcome surprise down the road. If you have questions about Crowdfunding or other securities issues, please contact Offit Kurman business law attorney Brent Salmons at (240) 507-1721 or bsalmons@offitkurman.com. Mr. Salmons has significant experience assisting clients in debt and equity fundraising as well as mergers and acquisition matters. His practice focuses on providing comprehensive legal advice to clients in diverse industries, including Telecommunications, Media and Technology, Government Contracting, Energy and Real Estate. To learn more about Offit Kurman – one of the fastest-growing, full-service law firms in the Mid-Atlantic region – please fill out our contact form. With over 100 attorneys in seven offices serving Washington DC, Baltimore, Philadelphia, Wilmington and Northern Virginia, the firm is well positioned to meet the legal needs of dynamic businesses and the people who own and operate them. You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.