The JOBS Act is a big gain for a changing construction industry.
?
Financing. It?s a common discussion topic amongst startup businesses and their attorneys. But seldom does it come up in the construction law world. Well, it?s time to talk about it, because with new technologies, new building practices and new niche construction work, the construction startup is more common than ever.
?
Recently, I have had the pleasure of assisting a number of small startup businesses. Small businesses are very alike at their core, requiring structure, planning, compliance and financial management. Construction firms are no different and require consistent capital for growth through equipment investments, new service offerings and staffing.
?
The construction industry has, for a long time, been defined by consistency and age. Older and more experienced contractors survive well, and continue to grow through their own profits. But, these days we require new and different types of builders. We need contractors willing to change the way we think about our energy systems, modern design, sustainability and even technology. From this has grown a niche space for a number of new contracting businesses.
?
What is very exciting to me is that some of these enterprising contractors are willing to approach the funding and formation of their business much like a?technology?or software startup might. Software startups have, for a long time, relied on pools of up-front funding, from hefty numbers of investors, with little more than ideas to serve as investor security. Why can?t contractors?capitalize?on this same mentality? They can.
?
With the passage of the JOBS Act, I expect to see more and more upstart contractors on Kickstarter.com and the newly-formed Crowdfunder.com. The JOBS Act enables these types of web services to help your business market itself to vast pools of potential investors, contributors and fundraisers. The potential for use of these services to boost growth in new construction firms is great.
?
The JOBS Act came around to solve a big problem for small business financing ? the restrictions set forth by the Securities Act. Under SEC regulations, many offerings of ownership interests must be registered and follow strict protocols. If you can qualify as a smaller offering, you might gain an exemption under Regulation D to the Act, but unfortunately that means that you are likely limited to obtaining funding from wealthy individuals known as ?Accredited Investors,? while still being strapped with significant regulation.
?
The JOBS Act strips regulatory constraints for qualifying offers. In sum, the Act allows businesses to raise up to $1 Million per year through SEC-approved ?crowdfunding? sites. The Act further enables persons who would not qualify as an ?Accredited Investor? to invest in your company.?Investors with a net worth of less than $100,000 may now invest 5% of their yearly income or $2,000, whichever is higher. Some wealthy investor can invest up to 10% of their income.
?
Check out this link to review eight of the ?crowdfunding? sites that are likely to gain SEC approval in the near future. I sincerely hope to see more?entrepreneurs?show interest in the construction industry, now that capital is more accessible.
?
?
ground hog day 2012 aaron carter black history month did groundhog see his shadow soul train don cornelius rod parsley barry sanders jr
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.