|Early financing, loans & the SEC||<– Date –> <– Thread –>|
|From: Tom Hammer (thammer302yahoo.com)|
|Date: Mon, 27 Nov 2006 17:05:58 -0800 (PST)|
Hi All, Many, many thanks to all who have given us their experience about how to work out your financial structure. We've received two seemingly conflicting pieces of advice about loans. Do we risk running afoul of SEC regulations if we solicit or accept loans from investors who are not members of the group? I understand several groups have done this. I don't think it's a state specific question since the SEC is federal. >From what I read in Liz Walker's book, EcoVillage at Ithaca had outside lenders, for example, and she doesn't mention any SEC red tape... Any advice or language of loan agreements you can give us would be extremely helpful. Tom Hammer for Concord Village ---------------------------------- We did not have a cash-call system. If we were going to hit a period of exceptional expenses (much of which could be anticipated), we solicited voluntary member-household contributions, which (unlike the capital contributions) paid interest, and/or solicited outside lenders and investors (including some on this list -- Thanks again!!). Hope this helps. All the best! Regards, David Heimann Jamaica Plain Cohousing Date: Wed, 22 Nov 2006 21:57:49 -0500 From: Dave and Diane <daveanddee [at] verizon.net> Subject: Re: [C-L]_ Financial structure advice needed for forming group To: cohousing-l [at] cohousing.org Message-ID: <6780710F-7A9E-11DB-BF21-0003936C420C [at] verizon.net> Content-Type: text/plain; charset=US-ASCII; format=flowed Hi everyone in coho-land! I just want to clarify one thing--we did NOT have investors. Anyone who loaned us money had to either be an associate member or know a member of the group well enough to give them a personal loan. When you have investors it creates a whole new ball of wax and you have to create a prospectus, submit an annual report, file with the SEC, etc. etc. etc. etc. Trust me--you do NOT want to go there. --Diane(:^[ marketing facilitator jp cohousing 617-522-2209 Box 300420 boston ma http://www.jpcohousing.org
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