June 15, 2011
There follows my comments in regards to the petition for rulemaking change #4-605:
Hi. My name is Ryan Allis. I am a CEO, investor, and business owner from Raleigh, North Carolina. I would like to submit comments on rulemaking change #4-605.
I strongly believe that enabling individual unaccredited U.S. investors to invest small amounts of money (say $25 to $1000) at a time in crowdsourced loans (loans provided to individuals or businesses for which the capital is sourced from many individuals in small amounts at a time) should be made possible and allowed. Often times individuals contribute small amounts of money to crowdsourced loans just as much to help out another person as to make a financial return. And so in my view the full normal consumer protections for investing in these securities should not fully apply. An exemption that allows any American, not just accredited investors) the ability to invest say between $0 and $1000 in a crowdsourced debt instrument without the company providing the crowdsourced opportunity having to file an S1 would be very helpful. Perhaps there could be a registration process for small crowdsourced loans so the SEC could keep track of what was happening without having the same in depth and onerous as the requirements to sell much larger and more complex securities.
Thank you very much for the opportunity to comment.