We are frequently asked by customers and reporters, “when can we equity crowdfund?!”
As many of you know, Georgia was only the second state to allow equity crowdfunding – so SterlingFunder has already been facilitating equity crowdfunding transactions.
The JOBS Act is the federal law that paved the way for equity crowdfunding to take place nationally. (Georgia has its own, what you could call, “mini-JOBS Act,” that allows SterlingFunder to operate now. Georgia’s rule is actually called the “Invest Georgia Exemption.”)
Before anyone, no matter what state you live in, can use the JOBS Act, the Securities and Exchange Commission (“SEC”) needs to finalize its crowdfunding rules.
The SEC proposed its crowdfunding rules in October 2013. The public had until February 3, 2014 to provide comments on the proposed rules. The next step is for the SEC to review the public comments and write and vote on final crowdfunding rules. Given that the SEC received thousands of public comments – with many multi-page comments – it will likely take several months for the SEC to review and finalize rules. As a result, we estimate that the final rules will issue during the Summer of 2014.
In the meantime, you can equity crowdfund in Georgia and can also take advantage of SterlingFunder’s reward-based crowdfunding program. Hope this was helpful – contact us with any questions.