Use the Investor Tool below to help you estimate the amount you are permitted to invest over the course of the year under SEC Regulation Crowdfunding rules.
If your annual income or net worth is less than $100,000, you can invest up to the greater of either $2,000 or 5% of the lesser of your income or net worth. if both your annual income and your net worth are more than $100,000, you can invest up to 10% of the lesser of your income or net worth but not more than $100,000.
|Estimated Crowdfunding limit per year for all portals||$0.00|
The law limits how much you may invest and you must comply with your annual investment limits.
Businesses are subject to a due diligence process before they are cleared to post a loan in the Funding Wonder Marketplace. A credit assessment team collects comprehensive background information and analyzes historical performance. You can view full business profiles for loans posted in the Funding Wonder Marketplace and make a decision about the type of company you would like to invest in and your risk profile. LEARN MORE
While investing in small business loans may bring rewards, it also carries risks. These tips can help you determine if a crowdfunding offering is right for you.
After the enactment of the Jumpstart Our Business Startups Act of 2012, the SEC was tasked with adopting rules to facilitate capital raising by small businesses while providing significant investor protections. Regulation Crowdfunding or Regulation CF enables individuals to purchase securities in crowdfunding offerings subject to certain limits, requires companies to disclose certain information about their business and securities offering, and creates a regulatory framework for the intermediaries facilitating crowdfunding transactions.
For each Loan, an escrow account will be set up to hold funds during the bidding process. This escrow account will be closed at the end of bidding with funds transferred either to the Company or returned to investors.
You must be 18 years or older and you will be subject to the rolling twelve month investment limitations of Regulation CF.
Any securities issued in an offering conducted under Regulation Crowdfunding are subject to a one-year restriction on transfer, unless such transfer is made: (i) to the issuer of the securities; (ii) to an accredited investor; (iii) as part of a registered offering; or (iv) to a family member of the purchaser or certain trusts. The promissory notes issued by companies using our funding portal may contain additional restrictions on transfer. Investments on Funding Wonder should be viewed as illiquid investments meaning you cannot sell the securities quickly and there may be no market for the investments when you are able to resell.
You are subject to certain limitations to balance the risk that typically comes along with small business lending. Specifically, SEC regulations limit the amount individual investors may invest across securities offered under Regulation CF over a trailing 12-month period. The limitations are as follows:
If the investor’s annual income or net worth is less than $100,000, then an investor may invest the greater of:
If the investor’s annual income and net worth are at least $100,000, then an investor may invest the lesser of:
Furthermore, for any 12-month period, the aggregate amount of securities sold to an investor through all crowdfunding offerings may not exceed $100,000.
The table below, which was provided by the SEC, provides examples of an individual investor’s aggregate investment limits in any 12-month period.
|Investor Annual Income||Investor Net Worth||Calculation||Investment Limit|
|$30,000||$105,000||Greater of $2,000 or 5% of $30,000 ($1,500)||$2,000|
|$150,000||$80,000||Greater of $2,000 or 5% of $80,000 ($4,000)||$4,000|
|$150,000||$100,000||10% of $100,000 ($10,000)||$10,000|
|$200,000||$900,000||10% of $200,000 ($20,000)||$20,000|
|$1,200,000||$2,000,000||10% of $1,200,000 ($120,000), subject to $100,000 cap||$100,000|