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Maverick
Maverick, Attorney
Category: Legal
Satisfied Customers: 5766
Experience:  20 years experience as a civil trial and appellate lawyer
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Can a founder/officer of a company provide a loan to a

Customer Question

Can a founder/officer of a company provide a loan to a corporation without doing a Reg D filing?
Submitted: 1 month ago.
Category: Legal
Expert:  Maverick replied 1 month ago.

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Expert:  Maverick replied 1 month ago.

Because the loan would be going to the corporation from you, as a private investor who receives a promissory note [as opposed to a business loan from a bank], this transaction may be considered "a debt offering" security to which Reg. D applies. Under the Securities Act of 1933, any offer to sell securities must either be registered with the SEC or meet an exemption. Regulation D contains three rules providing exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the securities with the SEC. For more information about these exemptions, read Rules 504, 505, and 506 of Regulation D.

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