Over the last several decades, the federal government has made available to the business community various funding programs designed to spur economic growth across the country. Navigating these programs can be challenging, as they are typically subject to multiple federal agencies with differing jurisdictions. At CSG, we believe that clients who are eligible for this low-cost capital should be able to utilize it with confidence. More recently, cryptocurrency and blockchain companies have seen increasing pressure from new SEC rules and a myriad of SEC related enforcement actions.
To this end, CSG deploys a multidisciplinary approach on matters involving alternative capital – striving to ensure that clients remain compliant with regulations applicable to projects leveraging alternative capital sources.
While our experience with alternative capital programs is extensive and varied, CSG’s Alternative Capital Group primarily focuses on the following federal programs.
EB-5 Immigrant Investor Program
Pioneers in the area of EB-5 financing, our attorneys have counseled regional centers, real estate developers, franchisors and entrepreneurs raising capital through this unique program since 2010. We are experienced in offshore offerings ranging from “direct” $1 million raises up to complex $400 million “regional center” raises – and everything in between. In the aggregate, our attorneys have advised on more than $2 billion in capital raises via the EB-5 program, and successfully closed hundreds of EB-5 transactions.
- Structuring EB-5 capital raises to ensure compliance and minimize disruption of existing financing strategies
- Drafting, negotiating and reviewing EB-5 offering documentation
- Securities and immigration law compliance, including:
- Conducting compliance audits
- Drafting compliance manuals
- Staff compliance training
- Agency site visit preparations
- Counsel regarding EB-5 financing best practices
- Regional center representation, including sponsorship of third-party projects
- Drafting, negotiating and reviewing foreign agent marketing agreements
- Registering foreign agents and finders with Homeland Security and the SEC
- EB-5 franchise opportunities
- Fund Administration compliance
Made available through the JOBS Act in 2012, crowd financing is the sale of equity directly to the public without first registering those securities with the Securities and Exchange Commission (SEC). Our attorneys are experienced with the three major crowd financing regulatory frameworks – Title II (Regulation D, Rule 506(c)), Title III (Regulation CF) and Title IV (Regulation A+) – and advise real estate developers and entrepreneurs on the benefits and drawbacks of each so that they may utilize that which best suits them and their business objectives.
We also represent crowd financing platforms to ensure that they are compliant with applicable regulatory requirements.
Decentralized Finance and Blockchain Technologies
Our team is uniquely experienced in counselling individuals and companies in the areas of decentralized finance (“De-Fi”) compliance. Cryptocurrency exchanges, Non-Fungible Tokens (“NFTs”), and Decentralized Autonomous Organizations (“DAOs”) that comprise the De-Fi universe is a world that changes rapidly. While a United States Central Bank Digital Currency is in early development, current and impending regulation of private De-Fi applications, NFTs, and DAOs present both opportunity and risk requiring guidance and navigation. For example, SEC enforcement is on the rise and our clients seek our counsel to navigate exposure and/or properly register their activities with the SEC.
Further, our team is on the forefront of the emerging legal area of DAO governance. If you are interested in forming a DAO LLC under the new State of Wyoming law, please contact our team today.
Did you know that there are blockchain protocols (sometimes referred to as blockchain ‘networks’, ‘platforms’ or ‘hosts’) that will provide you or your Company with money to build out your blockchain use-case? We are one of the very few firms with actual experience advising and consulting Companies on how to apply for and successfully win financial awards from blockchain based protocols via submission of proposals. Need help designing your next proposal? Contact our team today.
Established by the 2017 Tax Cuts and Jobs Act, the Federal Qualified Opportunity Zone Program is designed to promote and drive long-term investment in designated low-income areas.
To learn about CSG’s approach to representing clients utilizing this innovative program, click here.