Small business financing is one of the greatest hurdles any entrepreneur must face.
In 2015, we discussed a number of ways that entrepreneurs can raise the capital needed to get their companies off the ground and help them grow. We also highlighted several new laws, such as the Securities and Exchange Commission’s new equity crowdfunding rules, that is intended to benefit small business financing. In case you missed any of the posts, below is a brief recap:
SEC Crowdfunding Rules On October 30, 2015, the Securities and Exchange Commission (SEC) adopted final rules to implement equity crowdfunding under Title III of the Jumpstart Our Business Startups Act (JOBS Act). The much-anticipated rules are expected to be a game changer for startups and small businesses because it will allow them to raise money through smaller investments from a large number of people.
State-level crowdfunding While awaiting the SEC rules, more than 20 states legalized some form of equity crowdfunding at the local level. Most regulations allow entrepreneurs to solicit financing from investors who reside in the same state, subject to certain caps. Now that it has finalized its crowdfunding regulations, the SEC also proposed new rules intended to help facilitate intrastate and regional securities offerings.
Friends and Family When founders tap their own resources, friends and family can be a welcome source of capital for new ventures having difficulty securing loans or venture capital funds. Startups can often raise $50,000 to $500,000 and more through this type of financing. However, friends and family financing is not without its pitfalls, including the failure to formalize the arrangement.
Online Lending Online lending is set to outpace more traditional financing methods. In 2015, 80 percent of small-business owners went online first to search for a loan, according to the latest statistics. While the Internet can help connect companies with lenders, as with more traditional loans, it is still imperative for small businesses to do their research.
Regulation A+ Regulation A+, which took effect on June 29, 2015, is intended to provide small businesses with greater access to capital by expanding a little used exemption to SEC registration. Under the new regulations, businesses will be able to offer and sell up to $50 million of securities in a 12-month period, so long as they meet certain eligibility, disclosure and reporting requirements.
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
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