effects of the pandemic. Small businesses depend on this universally popular provision, which since 2009 has raised more than $13.5 billion while only seeing a miniscule 221 SEC complaints. Within the industry, private lenders and private funds that use IRA investments to deploy capital would face significant hardship to locate new sources and divest all current IRA investments within two years. This would in turn decrease the funds available to housing providers and local economies already strug- gling in the aftermath of the COVID-19 pandemic. Beyond this urgent matter, ongoing topics dis- cussed included Affordable Housing, Opportunity Zones, the Home Mortgage Disclosure Act, Bankrupt- cy, 1031 Exchange, and more. FACTUAL IMPACTS Regulation D investments drive the success of small business. The median size of these offerings was $2.25 million and years since corporate inception was two. More than 60 percent of small businesses rely on private placements to raise capital and a significant share has unmet credit needs and are underrepresented minorities faced significantly higher hurdles in obtaining external financing. An annual report from the SEC Office of Advocate for Small Business Capital Formation determined that the number of U.S. small businesses decreased 27 percent from January 2020 to September 2020, but that Americans started new businesses at the fastest rate in more than a decade. According to the American Association of Private Lenders and what their members have learned from Day on the Hill discussions with policymakers, bill sections 138312 and 138314 originated under the fol- lowing premises: Preventing high-net-worth individuals from “abus- ing” the tax-deferred nature of self-directed IRAs by forcing divestment (“Peter Thiel Effect”). While other forced-divestment sections of the tax bill WOULD have this result, sections 138312 and 138314 simply force self-directed IRA accountholders to move their money from one type of investment to another. IRA accountholders affected by the bill should not be investing in private offerings; they need more pro- tection and do not have the investment knowledge to complete due diligence and make informed decisions about these offerings. According to the SEC, more than 5.9 million investors participated in Reg D offer-
KAPIL SINGLA
Kapil Singla has been in real estate for three years. He started his first company in 2018 and flipped houses in the South Bend, Indiana area. He operates three different companies in different
areas but mostly connected with real estate. He has expertise in marketing and in acquiring real estate strategically.
GLENN STROMBERG Glenn began his career in real estate in 1982, quickly rising to the top owning and managing a Clayton Home franchise as
well as owning and operating 13 independently owned manufactured home dealerships and running a successful fix-and-flip business. Over his 38 years in the industry, he developed mobile home subdivisions, owned a mobile home park, owned and operated mobile home sales centers and bought, sold, and leased single-family homes. In 2006, Stromberg Investment Group was formed, which allows investors a safer option to invest and to receive higher returns without the high risk that Wall Street or the “flipping game” yields. With over 400 homes under management spanning four states, SIG deploys over $2 million dollars in investment capital each month and closes on average 12 properties each month. Stromberg Investments offers investors lucrative passive turnkey options and long-term lending opportunities.
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