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====== Regulation Crowdfunding (Reg CF) Exemptions ======

<code yaml metadata>
process_id: L-US-FED-SEC-001
title: Regulation Crowdfunding (Reg CF) Exemptions
description: >
  Detailed requirements and process for conducting a securities offering
  under Regulation Crowdfunding (Reg CF), including issuer eligibility,
  offering and investor limits, disclosure requirements, use of
  intermediaries, advertising restrictions, ongoing reporting, and
  resale restrictions.
category: financial-processes/securities
jurisdiction:
  country: US
  level: federal
  regulatory_body: SEC
source_authority:
  name: U.S. Securities and Exchange Commission
  url: https://www.sec.gov/education/smallbusiness/exemptofferings/regcrowdfunding
status: draft
version: 1.0.0
created_date: 2026-01-05
last_reviewed: 2026-01-05
contributors: ["@anson_parker"]
license: CC-BY-SA-4.0
process_type: branching
is_executable: false
complexity: complex
risk_level: high
confidence_level: guidance
soundness_verified: false
tags: ["securities", "crowdfunding", "reg-cf", "SEC", "federal", "fundraising", "startup-funding"]
</code>

===== Overview =====

Regulation Crowdfunding (Reg CF) allows eligible companies to offer and sell securities through crowdfunding. This model covers the complete requirements process under [[https://www.sec.gov/education/smallbusiness/exemptofferings/regcrowdfunding|SEC Regulation Crowdfunding]], from issuer eligibility through resale restrictions.

See also: [[https://www.wikidata.org/wiki/Q348303|Wikidata: Crowdfunding]]

===== Detailed Reg CF Requirements =====

1.  Issuer Eligibility
    -   Must be a U.S. company organized under U.S. state or territorial laws
    -   Cannot be an SEC reporting company, investment company, or blank check company
    -   Must not be disqualified under "bad actor" rules (Rule 503 of Regulation Crowdfunding)
    -   Must have a specific business plan (not just to engage in a merger or acquisition with an unidentified company)
2.  Offering Limit
    -   Can raise up to $5 million in a 12-month period
    -   This limit includes all Reg CF offerings within the past 12 months
    -   Must aggregate amounts sold in reliance on Reg CF with amounts sold in reliance on Rule 504 of Regulation D and in reliance on other exemptions
3.  Investor Limits
    -   For investors with annual income or net worth less than $107,000:
        -   Greater of $2,200 or 5% of the lesser of annual income or net worth
    -   For investors with both annual income and net worth of $107,000 or more:
        -   10% of the lesser of annual income or net worth
    -   Accredited investors have no limits
    -   All investor limits are calculated across all Reg CF offerings in a 12-month period
4.  Disclosure Requirements
    -   File Form C with the SEC, which includes:
        -   Information about officers, directors, and owners of 20% or more of the company
        -   Description of the company's business and use of proceeds
        -   Price of the securities or method of determining the price
        -   Target offering amount and deadline
        -   Company's financial condition
        -   Financial statements:
            -   Offerings up to $124,000: Financial statements and specific line items from income tax returns, certified by the principal executive officer
            -   Offerings between $124,000 and $618,000: Financial statements reviewed by an independent public accountant
            -   Offerings over $618,000:
                -   For first-time Reg CF issuers: Reviewed financial statements
                -   For repeat Reg CF issuers: Audited financial statements
    -   Disclose risks to investors
    -   File annual reports (Form C-AR) and termination reports (Form C-TR) as needed
5.  Use of Intermediaries
    -   Must use a single intermediary registered with the SEC (as a broker-dealer or funding portal)
    -   The offering must be conducted exclusively through the intermediary's platform
    -   Intermediary must:
        -   Provide educational materials to investors
        -   Take measures to reduce fraud risk
        -   Make issuer information available for at least 21 days before any sale of securities
        -   Facilitate the offer and sale of crowdfunded securities
6.  Advertising Restrictions
    -   Issuers may not advertise the terms of a Reg CF offering except in a notice that directs investors to the intermediary's platform
    -   The notice is limited to:
        -   A statement that the issuer is conducting an offering
        -   The terms of the offering
        -   The name of the intermediary through which the offering is being conducted
        -   A link to the intermediary's platform
7.  Ongoing Reporting
    -   File annual reports with the SEC and provide them to investors
    -   The annual report includes information similar to what's in Form C
    -   This obligation continues until:
        -   The issuer becomes a reporting company required to file reports under Exchange Act Section 13(a) or 15(d)
        -   The issuer or another party repurchases all of the securities issued in the Reg CF offering
        -   The issuer liquidates or dissolves its business in accordance with state law
8.  Resale Restrictions
    -   Securities purchased in a Reg CF offering generally cannot be resold for one year
    -   Exceptions allow resales to:
        -   The issuer
        -   An accredited investor
        -   A family member
        -   In connection with the death or divorce of the purchaser
        -   Or as part of an offering registered with the SEC

===== BPMN Model =====

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