The Securities and Exchange Commission today voted 5-0 to propose rules aimed at letting startups tap large numbers of ordinary investors for small amounts of capital. Under the long-delayed "crowdfunding” regulations, small firms could sell shares through online "portals," where thousands of investors could pore over the business plans of small companies and choose promising investments.
The American Institute of Architects (AIA) in February had urged the SEC to issue such regulations for equity-based crowdfunding, citing the ability of this innovative financing tool to create jobs and maintain the current economic recovery.
Crowdfunding, the practice of investing in projects through the use of a crowd-supported web based fundraising campaign, shows significant promise for attracting investors to smaller real estate projects and getting them off the architect’s drawing board. According to an AIA report, the amount of money generated by crowdfunding was close to $1.5 billion in 2011.
AIA President Mickey Jacob, FAIA, said:
“Architects and design professionals of every industry are grateful that the SEC has finally proposed these final regulations to further develop businesses and provide increased value to the American economy. Once these rules are finalized, crowdfunding may well become a major vehicle for communities to develop revitalization projects that may often be too small to attract enough investment capital.
“We look forward to the SEC adopting final crowdfunding regulations soon and stand ready to help educate the design and construction community about the tremendous potential of this innovative fund-raising tool.”
About the American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Building Team | Jun 8, 2022
Alastair MacGregor to lead WSP USA Property and Buildings Business
Alastair (Aly) MacGregor has been named the executive business line leader for Property and Buildings at WSP USA, one of the nation’s largest engineering and professional services consultancies.
Codes and Standards | Jun 8, 2022
Florida Legislature passes bill requiring stricter condominium inspection
The Florida Legislature recently passed a bill to beef up building inspection requirements for many of the state’s condominiums.
Office Buildings | Jun 8, 2022
Former L.A. Times newsroom/printing plant remade into office campus
Phase 1 of The Press, an adaptive reuse project that is converting an old Los Angeles Times facility into a modern office campus, was recently completed in Costa Mesa, Calif.
Codes and Standards | Jun 7, 2022
FEMA launches National Initiative to Advance Building Codes
The U.S. Federal Emergency Management Agency (FEMA) has launched a new government-wide effort to boost national resiliency and reduce energy costs.
Plumbing | Jun 7, 2022
Sloan launches ‘Sinks Beyond the Restroom’ innovation
Sloan, the world’s leading manufacturer of commercial plumbing systems, has launched its ‘Sinks Beyond the Restroom’ concept.
Building Team | Jun 7, 2022
Announcing construction inclusion week 2022: October 17-21, 2022
Save the date for Construction Inclusion Week 2022: October 17-21, 2022.
University Buildings | Jun 7, 2022
Newfoundland university STEM building emulates natural elements, local traditions
Memorial University of Newfoundland (MUN) recently opened a new building that will provide interdisciplinary learning and research space for Faculties of Science and Engineering.
Codes and Standards | Jun 2, 2022
Guide helps schools find funding for buildings from federal, state government
New Buildings Institute (NBI) recently released a guide to help schools identify funding programs for facilities improvements available from federal and state government programs.
Airports | Jun 2, 2022
SOM-designed International Arrival Facility at Seattle’s Sea–Tac airport features the world’s largest aerial walkway
The Skidmore, Owings & Merrill (SOM)-designed International Arrivals Facility (IAF) at Seattle-Tacoma International Airport has opened, replacing a 50-year-old arrival facility.
Women in Design+Construction | Jun 2, 2022
Women in Architecture: How HMC Pioneers Gender Equality
A survey by the Association of Collegiate Schools of Architecture (ACSA) shows that while women account for nearly half of graduates from architecture programs, they only make up about 15 percent of licensed architects.
