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U.S. SEC expected to lift small investor crowdfunding ban: Reuters

U.S. regulators are expected on Friday to adopt a rule that will open crowdfunding to all Americans by lifting a ban that allowed only the wealthy to invest in small business projects funded over the Internet.

The adoption of Title III of the Jumpstart Our Business Startups Act is expected to boost the volume of deals and capital raised by companies through crowdfunding, especially in real estate ventures.

The Securities and Exchange Commission in September 2013 lifted a restriction on the public solicitation of private securities, but only allowed accredited investors – those with at least $1 million in assets excluding their home – to take part in crowdfunding.

Real estate has been a major beneficiary of crowdfunding as investors seek to directly tap investments that may return from 7 percent to 12 percent a year. Dozens of companies have sprung up as online intermediaries between investors and borrowers.

An SEC notice said the federal agency will consider whether to adopt the Title III provision in an open meeting on Friday.