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
Contractors | Oct 4, 2022
Which comes first, the building or the cost estimate?
At the start of a project, don’t forget to establish financial parameters when you’re discussing the design and program. By establishing the costs up front, you can avoid the pitfalls that might derail your project and guarantee its lasting success.
Fire and Life Safety | Oct 4, 2022
Fire safety considerations for cantilevered buildings
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
| Oct 4, 2022
Rental property owners want access to utility usage data for whole properties
As pressure from investors for ESG reporting mounts, owners of multifamily properties increasingly look to collect whole-building utility usage data.
| Oct 4, 2022
In dire need of affordable housing, Aspen, Colo. will get a development that provides 277 affordable homes
A few miles from downtown Aspen, Colo., a development will provide 277 new affordable homes for an area experiencing a dire affordable housing crisis.
Green | Oct 3, 2022
California regulators move to ban gas heaters for existing buildings
California regulators voted unanimously recently on a series of measures that include a ban on the sale of natural gas-powered heating and hot water systems beginning in 2030.
| Oct 3, 2022
The College of the Holy Cross completes a $110 million performing arts center
In Worcester, Mass., a one-hour drive from Boston, the College of the Holy Cross has completed its $110 million Prior Performing Arts Center.
Resiliency | Sep 30, 2022
Designing buildings for wildfire defensibility
Wold Architects and Engineers' Senior Planner Ryan Downs, AIA, talks about how to make structures and communities more fire-resistant.
| Sep 30, 2022
Manley Spangler Smith Architects partners with PBK in strategic merger
Manley Spangler Smith Architects (MSSA), a Georgia-based, full-service architectural firm specializing in educational and municipal facilities, announced today a significant development aimed at increasing its capabilities, expertise, and suite of services.
| Sep 30, 2022
Lab-grown bricks offer potential low-carbon building material
A team of students at the University of Waterloo in Canada have developed a process to grow bricks using bacteria.
| Sep 29, 2022
FitzGerald establishes Denver office
The new location bolsters FitzGerald’s nationwide reach and capitalizes on local expertise and boots-on-the-ground to serve new and existing clients seeking to do business in Denver and the Front Range, as well as the Southwest United States, California, and Texas.
