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
| Dec 17, 2010
Toronto church converted for condos and shopping
Reserve Properties is transforming a 20th-century church into Bellefair Kew Beach Residences, a residential/retail complex in The Beach neighborhood of Toronto. Local architecture firm RAWdesign adapted the late Gothic-style church into a five-story condominium with 23 one- and two-bedroom units, including two-story penthouse suites. Six three-story townhouses also will be incorporated. The project will afford residents views of nearby Kew Gardens and Lake Ontario. One façade of the church was updated for retail shops.
| Dec 17, 2010
ARRA-funded Navy hospital aims for LEED Gold
The team of Clark/McCarthy, HKS Architects, and Wingler & Sharp are collaborating on the design of a new naval hospital at Camp Pendleton in Southern California. The $451 million project is the largest so far awarded by the U.S. Navy under the American Recovery and Reinvestment Act. The 500,000-sf, 67-bed hospital, to be located on a 70-acre site, will include facilities for emergency and primary care, specialty care clinics, surgery, and intensive care. The Building Team is targeting LEED Gold.
| Dec 17, 2010
Arizona outpatient cancer center to light a ‘lantern of hope’
Construction of the Banner MD Anderson Cancer Center in Gilbert, Ariz., is under way. Located on the Banner Gateway Medical Center campus near Phoenix, the three-story, 131,000-sf outpatient facility will house radiation oncology, outpatient imaging, multi-specialty clinics, infusion therapy, and various support services. Cannon Design incorporated a signature architectural feature called the “lantern of hope” for the $90 million facility.
| Dec 17, 2010
Cladding Do’s and Don’ts
A veteran structural engineer offers expert advice on how to avoid problems with stone cladding and glass/aluminum cladding systems.
| Dec 17, 2010
5 Tips on Building with SIPs
Structural insulated panels are gaining the attention of Building Teams interested in achieving high-performance building envelopes in commercial, industrial, and institutional projects.
| Dec 17, 2010
How to Win More University Projects
University architects representing four prominent institutions of higher learning tell how your firm can get the inside track on major projects.
| Dec 13, 2010
Energy efficiency No. 1 priority for commercial office tenants
Green building initiatives are a key influencer when tenants decide to sign a commercial real estate lease, according to a survey by GE Capital Real Estate. The survey, which was conducted over the past year and included more than 2,220 office tenants in the U.S., Canada, France, Germany, Sweden, the UK, Spain, and Japan, shows that energy efficiency remains the No. 1 priority in most countries. Also ranking near the top: waste reduction programs and indoor air.
| Dec 7, 2010
Are green building RFPs more important than contracts?
The Request for Proposal (RFP) process is key to managing a successful LEED project, according to Green Building Law Update. While most people think a contract is the key element to a successful construction project, successfully managing a LEED project requires a clear RFP that addresses many of the problems that can lead to litigation.
| Dec 7, 2010
Blue is the future of green design
Blue design creates places that are not just neutral, but actually add back to the world and is the future of sustainable design and architecture, according to an interview with Paul Eagle, managing director of Perkins+Will, New York; and Janice Barnes, principal at the firm and global discipline leader for planning and strategies.
