Contract with Black Fresno and Wealh Gap In America
Fresno Metropolitan area is economically disadvantage because they lack a CAB Capital Access Broker’s as they are referred to as investment banks to provides investment banking and advisory services with a focus on mergers and acquisitions, restructuring and private capital placements.
Many small business rely on local chambers of commerce who don’t have enough resources to provide strategic investment banking services to there small business communities to access capital markets.
Aaccording to FINRA Capital Acquisition Brokers (CAB’s) are firms that engage in a limited range of activities, including:
- advising companies and private equity funds on capital raising and corporate restructuring, and
- acting as placement agents for sales of unregistered securities to institutional investors under limited conditions.
However many Fresno small business and emerging growth companies do not have access to capital markets nor do they have any Black Broker Dealers to turn to and rely on Grant’s and micro loans for survival during this pandemic.
Capital formation through private placement of securities has increased substantially since the onset of the financial crisis.
Amounts raised through unregistered securities offerings have outpaced the level of capital formation through registered securities offerings during recent years, and totaled more than $2 trillion during 2014.
Abstract Unregistered Offering
According to our case studies many small black-owned businesses trying to raise capital are effectively shut out of capital formation due to under-representation from BD’s and CAB’s verses there white counterparts businesses that are flourishing and thriving during this pandemic due to support and private offering being effectuated.
We further find evidence that many Crowdfunding portal intermediaries are not willing to support or take a risk on minority-owned business due to lack of cashflow and access to institutional investors, HNW-High Networth individuals, family offices and the significant regulatory challenges posed to SMB’s ability to obtain audited financial statements and cost to raise capital up to $1,070,000.
The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country’s securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012.
Title III Crowdfunding Limits & Final Rules
FAQ’s of issuing and investing limits granted in Title III of the JOBS Act are:
Allows a company to raise a maximum aggregate amount of $1.07 million through crowdfunding offerings in a 12-month period
Permits individual investors, over a 12-month period, to invest in the aggregate across all crowdfunding offerings up to:
$2,200 or 5% of the unaccredited investors net worth or yearly income if they make less than $107,000 per year
If both their annual income and net worth are equal to or more than $107,000, 10% of the lesser of their annual income or net worth
Fresno County was rated No. 1 in the nation in agricultural producing nearly $7.9 billion worth of agriculture in 2018. Farmers and ranchers in Fresno County produced a record value of $7.88 billion in crops and commodities last year, up from $7.02 billion in 2017, while blacks contributions to the Fresno GDP per capita was not measured.
However black businesses and minorities lag behind in Fresno in the agricultural sector and GDP per capita in the following industries:
- Construction
- Affordable Housing Development
- Opportunity Zones
- Communications
- Consumer
- Energy
- Financials
- Healthcare
- Industrials
- Media and Entertainment
- Retail
- Technology Sector
There is a (SPV) Special Purpose Vehicle investment Platform in Fresno that aims to solve the wealth gap and lack of financial inclusion.
MKG Enterprises Corp is a diversified financial service company that provides outsourced CFO accounting, capital formation, exempt security advisory service model, Software-as-a-Service and non-tradional investments contained in their circular offerings under Rule 506 (c) of Regulation D.
Have a project in need of funding? To set up an account is absolutely free. We do not charge to review your account nor do we provide legal or offer to sell securities advice! However, there is a small 6% site fee and $149 set up fee that will automatically be deducted from your crowdfund earnings. Additionally, credit card processing fees will range from 2%-3%.
Get Verified as an Accredited Investor
If you’re an individual accredited investor considering investment in a Reg D 506 (c) private placement and need to be verified, click here to get your secure, electronic certificate of verification.