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
| Nov 22, 2011
Suffolk Construction selected as contractor for Boston luxury residential tower
Project team breaks ground on 488,000-sf building that will feature world-class amenities.
| Nov 22, 2011
Jones Lang LaSalle completes construction of two new stores in Manhattan
Firm creates new global design standard serving as project manager for Uniglo’s 89,000-sf flagship location and, 64,000-sf store.
| Nov 21, 2011
Mortenson and enXco partnership to build its 19th wind project
The 8,500 acres project will generate140 megawatts of wind power – enough energy to power approximately 39,000 homes.
| Nov 21, 2011
FDH Engineering acquires Energy Solutions
All ESI employees have been merged into FDH’s staff at its St. Louis office.
| Nov 18, 2011
Centre for Interactive Research on Sustainability opens
Designed to exceed LEED Platinum, the Centre for Interactive Research on Sustainability (CIRS) is one of the most innovative and high performance buildings in North America today, demonstrating leading-edge green building design products, technologies, and systems.
| Nov 17, 2011
SmithGroup changes name to SmithGroupJJR
SmithGroup and JJR join brands to become a single, multi-disciplinary company.
| Nov 17, 2011
Campus-wide energy-efficiency program aims to deliver $3.5 million in energy and operational savings
Merced College and Honeywell will use the school’s energy usage statistics to develop a course curriculum on sustainability, and raise awareness among students of the positive impact conservation practices contribute to the community.
| Nov 17, 2011
Hollister Construction Services renovating bank in Union City, N.J.
Project is part of a series of ground-up construction and renovation assignments.
| Nov 16, 2011
Project completion of BRAC 132, Office of the Chief Army Reserve Building, Ft. Belvoir, Va.
This fast-tracked, design-build project consists of a three-story, 88,470 sf administrative command building housing approximately 430 employees.
