---
title: What is Rule 506(c)?
description: What is Rule 506(c)?
---

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# What is Rule 506(c)?

Notably, rolling funds are covered under Rule 506(c). You’ll often see the term “506c” bandied about on Twitter as a shorthand for the public marketability of rolling funds.

The Jumpstart Our Business Startups Act in 2012, or JOBS Act, amended Rule 506 by adding Rule 506(c), which eliminated the restriction on general solicitation for fund offerings relying on Rule 506(c), while also imposing more stringent requirements on who can invest.

Under Rule 506(c), a fund may broadly solicit and generally advertise an offering provided that, among other things, all investors in the offering are accredited investors. The fund issuer also has to take certain steps to verify investors are all accredited investors and make sure certain other conditions in Regulation D are satisfied.

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