Letter to SEC Chairman Cites Missed Deadline and Lost Jobs
Washington, D.C. – February 28, 2013 – The American Institute of Architects (AIA) today sent a letter to Securities & Exchange Commission Chairman Elisse Walter urging the agency to issue regulations for equity-based crowdfunding, citing the ability of this innovative financing tool to create jobs and maintain the current economic recovery.
“With the economic recovery still tenuous, any financial instrument that can help create jobs through new products, innovations and designs must be a top priority,” the letter states. A link to the entire letter can be found here.
The AIA letter to the SEC chairman comes as federal agencies, including the SEC, face budget cuts due to "sequestration" – the automatic across-the-board spending cuts that are due to begin tomorrow. The letter expresses concern about sequestration and its impact on the economy and urges the SEC to act.
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 issued earlier this month. The report found that the amount of money generated by crowdfunding was close to $1.5 billion in 2011.
However, the SEC has yet to issue regulations for equity based crowdfunding as prescribed by Public Law 112-106, the JOBS Act. In fact, the agency has already missed Congress’ year-end deadline to write the Equity Crowdfunding regulations, “leading to additional delays and market uncertainty,” according to the letter.
“Architects and design professionals of every industry are awaiting these final regulations to further develop businesses and provide increased value to the American economy,” the letter states. “As our nation emerges from one of the worst economic downturns in recent history, it is imperative that the SEC fulfills its obligations and completes the writing of the rules necessary for this business financing tool to be put to use by the public.”
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