What is the Opportunity For You From New SEC Rule 506?

This is great news for EB-5 regional centers and developers. On July 10, 2013, the Securities and Exchange Commission (SEC) adopted a final rule under the Jumpstart Our Business Startups (JOBS) Act to lift the ban on general solicitation and general advertising for certain private securities offerings relying on Rule 506 of Regulation D exemption. Before the rule, much of Regional Centers were concerned to propagandize their EB-5 projects through advertisement to reach their vase Chinese prospect investors. After September 23rd, 60 days after their publication in the Federal Register, issuers and their selling agents will be permitted under Rule 506(c) to engage in general solicitation activities without losing the benefit of the Rule 506 safe harbor.

Rule 506

The new rule amends Rule 506 of Regulation D of the Securities Act of 1933 by adding a new exemption in Rule 506(c), which permits issuers to use general solicitation and general advertising to offer their securities, provided that:

    • All of the actual purchasers of the securities in the offering fall within one of the categories of “accredited investor” under Rule 501(a) of Regulation D, or the issuer reasonably believes all the purchasers fall within one of the accredited investor categories at the time of sale of the securities.
    • The issuer takes reasonable steps to verify that all the purchasers in the offering are “accredited investors”.

With this new rule, you do not have to refrain from advertising and publication to promote your EB-5 projects. The new rule provides more opportunities for the EB-5 industry, especially for regional centers to reach their target audiences more efficiently and accurate in a less restricted marketing environment by cooperating with EB-5 professional marketers and advertising agencies like us.

EB-5 Supermarket is a leader of EB-5 Chinese online media specialized in providing the most timely and most authoritative EB-5 and US immigration related information to Chinese investors around China and the globe. EB-5 Supermarket has helped many US Regional Centers to prepare the professional presentable Chinese marketing materials, workable marketing plan, press release and promoting their EB-5 projects in China market, to help them to accomplish their goal to raise the capital fund they desired for their EB-5 projects in the past.

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