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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: Choosing Between Regulation D Rule 506b and 506c for Your Syndication
Description: Ever wondered about the difference between Regulation D Rule 506b and Rule 506c offers? This piece delves into the key distinctions and how to choose between the two. Both rules allow for raising unlimited funds from an unlimited number of accredited investors. However, the key difference lies in the allowance of non-accredited investors and the ability to advertise. Rule 506b allows for a maximum of 35 non-accredited investors in any 90-day period, while Rule 506c does not permit any non-accredited investors. As for advertising, the latter allows it, while the former does not. You’re required to have a substantive re...