Keep eyes on JOBS Act impacts in 2014

Regulation D, crowdfunding and Regulation A are expected to expand range of options for project financing

by Coni Rathbone

As we look forward to the next 12 months, one area to watch closely is the ever-evolving face of commercial financing. It will be interesting to see whether conventional or alternative financing arises as the predominant financing tool for 2014. The changes in private financing, triggered by the 2012 JOBS Act, will finally create a significant impact in the private market, and likely in the financing market as a whole.

During the last several years, particularly in 2013, the U.S. economy continued a steady crawl out of the deep 2008-09 financial recession. The outlook for 2014 looks positive, with economists predicting continued “measured” growth.

One of the greatest challenges to the economy during the financial crisis was the unavailability of money from traditional sources. Moreover, private money was sitting on the sidelines awaiting some certainty in the recovery. In the current climate, and I expect well into 2014, money will be much more readily available, albeit under much more stringent underwriting requirements and guidelines.

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