February 6, 2021

The Difference Between 506(b) and 506(c) of Regulation D | Fast Funding Info

More than 90% of companies rely on Regulation D for their private offerings, making it one of the most popular exemptions from Federal Regulation. Today, Nate Dodson will be talking about the difference between SEC Regulation D Rule 506b and 506c.

Transcript:

What's the difference between Regulation D 506 B and Regulation D rule 506 C? With Regulation D rule 506 B, you're allowed to have up to 35 unaccredited investors, an unlimited number of accredited investors, but you're not allowed to generally solicit for those investors. With 506 C, you have only accredited investors; they go through a verification process with the sponsor or with a third party and then you can do a general solicitation meaning general advertising.

If you want to learn about Regulation D, click here.

Or if you want to learn more about 506(b) click here, and for 506(c) click here.

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