The SEC has ruled on Title III of the 2012 Jumpstart Our Business Starts Up Act (JOBS Act) and this is going to make a big impact on how small companies and real estate companies fund their projects in a major way. Previous to the change that we'll detail in a minute, there were rules on who could invest in these types of businesses or even if a business could advertise and sell securities to those that didn't meet the requirements. The rules only allowed those with an annual salary of $200k or more for the past two years ($300k if married) or those that have a net worth of $1M to invest in these types of venture loans. The people that met the standards were considered accredited investors.
