A PPM drafted for Rule 506(c) offerings

Rule 506(c) permits general solicitation of a private offering — including public marketing, website fundraising pages, newsletters, and social posts — subject to two key conditions: every purchaser must be accredited, and the issuer must take reasonable steps to verify accredited status. The SEC describes non-exclusive verification methods that can include reviewing specified documents or obtaining written confirmation from a qualified third party. The right method depends on the facts and should be settled with counsel.

506(c) may fit when the sponsor plans to market the raise publicly and can limit every purchaser to accredited investors while operating a reasonable-steps verification process.

It does not permit sales to non-accredited investors. An issuer choosing between 506(b), 506(c), or another pathway should have securities counsel evaluate the planned marketing, investor base, and verification process before launch.

When you pick 506(c) at the start of the wizard, the draft renders cover-page and suitability language for a generally solicited, accredited-only offering. The related materials describe possible reasonable-steps verification methods for the issuer and counsel to tailor; PPMWizard does not perform the verification.

The Form D pre-fill renders with the 506(c) box checked and the accredited-only investor-count structure ready for counsel review. PPMWizard presents 506(b) and 506(c) as separate choices rather than selecting the exemption for you.