Small Company Offering Registration

WHAT IS SCOR?

SCOR is the acronym for the Small Company Offering Registration. Also known as a Self-directed IPO, this less well-known cousin of the IPO has helped many small companies to raise equity capital without the time and expense of complying with the Securities and Exchange Commission's (SEC) filing requirements and related disclosures. Also, most organizations that go public work with investment bankers, who prefer to underwrite offerings of $10 million or more.

How much can I raise?

Since 1989, SCOR has helped many small to mid-size organizations raise up to $1 million per year. Regulation A filings are similar, allowing up to $5 million to be raised each year.

What type of business best suites SCOR?

SCOR offerings are best suited for companies looking for expansion capital, not money for initial research. With SCOR, organizations need to market the offering to people who know the company and are interested in its products and services. Small Business Associates Inc., can help you every step of the way.

Benefits of SCOR

• Organizations are exempt from filing federal SEC registration.
• A Universal Form (U-7) can be used in all states that have adopted SCOR (most have).
• Once an exemption is granted, the company may advertise its offering.
• By offering securities to the public, smaller companies can successfully compete with larger companies for capital.
• Successive offerings of up to $1 million can be made every year with updated documents.
• A SCOR offering does not prevent a future IPO.
• Due to the simplicity of the U-7 form, underwriting fees and lawyer and accountant fees are significantly reduced.
• Securities purchased through SCOR may be traded in the states where they are purchased.
• Regional filings allow companies to file in several states and reduce paperwork and expense.
• Rules for financial statements vary by state.
• SCOR offerings are subject to state agency review which increases credibility to investors.
• The company may list its offering on the Angel Capital Electronic Network (ACE-Net) which is accessed by high net-worth individuals.