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The AIA and the SEC Meet to Discuss Equity Crowdfunding
By Shervan Sebastian, Manager, Federal Relations
As reward, donation and lending based crowdfunding have continued to show considerable value to design and construction projects, the AIA met with the Securities and Exchange Commission (SEC) this week to discuss the status of equity crowdfunding regulations and how those rules may impact the profession.
Equity crowdfunding, an investment tool that enables broad groups of investors to fund startup companies and small businesses in return for equity stakes, is a still developing component of the JOBS Act signed into law last year. The SEC has been tasked with writing regulations to ensure this method of financing will operate effectively, and welcomed the AIA to participate in discussing how architects may put this pioneering option into use.
The AIA has previously published several instances where architects have been able to use crowdfunding to push innovative design ideas forward, and the meeting at SEC headquarters provided an opportunity for an exchange of ideas and constructive dialogue.
Recently, the AIA sent a letter to SEC Chairman Mary Jo White imploring the commission to finalize the rules for equity crowdfunding in a timeframe that supports continued business investment, hiring and economic development.
The AIA and the SEC agreed to continue this dialogue to ensure the interests and concerns of architects are well understood when the equity crowdfunding regulations are finally issued.
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