Back to Basics: 506(b) vs 506(c)

As you have seen - we continue to post some high level "back to the basic" guidelines to help keep new and experienced syndication and fund raisers out of the GRAY and Bad zones.

Nothing has really changed between utilizing Reg D 506(b) or (c) when choosing to raise capital to help fund transactions. However, we are seeing "potential" violations or extremely "gray" advertising and marketing throughout social media platforms. If we are seeing it, the SEC is seeing it. There is NO reason to cut corners here. It is NOT worth it.

Below, please find a link to a refresher on the differences between 506(b) and (c) for syndicators and syndicators-to-be. If you would like legal advice in determining which is best suited for you entity, please reach out to us at team@kaliserlaw.com.

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Final word - NEVER advertise if you are doing a 506(b). Zero exceptions!

Click here to view the full article.