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Raising Capital Gets a Bit Easier with New SEC Rule



Long-standing securities laws have constrained the ability of private companies to publicly promote their capital-raising efforts.

Now, after years of consideration and many delays, the Securities and Exchange Commission has rolled out a new rule lifting the ban on general solicitation for private offerings.

So notes Roger Quinland, a partner at Gordon & Rees, and Nancy Cass, co-founder of MerchantCass Advisors. They outline the new rule, known as 506(c), in an article being prepared for the next print issue of Franchise Times.

Here’s the short story: As of September 23, businesses can use general solicitation, otherwise known as advertising targeted to the public at large, to offer securities to investors.

They call the change a “revolutionary” method of fund-raising for franchise companies, but add detailed caveats. Business owners should check with their advisers—and read the full article in the November/December issue.

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About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is associate editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
Beth EwenBeth Ewen is editor-in-chief of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
Nicholas UptonNicholas Upton is staff writer at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
Mary Jo LarsonLaura Michaels is managing editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
Nancy WeingartnerNancy Weingartner is editor-at-large of Franchise Times magazine and the editor of the Food On Demand media project. You can reach her at 612-767-3200 or at nancyw@franchisetimes.com.
Follow her on Twitter at http://twitter.com/nanweingartner.




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