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  • Writer's pictureCalla Norman

3 Reasons Why You Should Invest Your Stimulus Check Locally!

Updated: Aug 10, 2021

coffee cup from Leavened Bakery in Cleveland, Ohio

This is not investment advice and is not a recommendation of purchase or sale of any security. Opinions expressed are those of the individual only.

With the latest round of $1,400 stimulus checks going around, many people are wondering what they can do with it, aside from helping pay for urgent needs like rent and bills. If they don’t need the check to make ends meet, some recipients are wondering whether to save their checks or to use them.

While some are investing in stocks like AMC Theatres, donating to charities in need, or making hilarious memes about the “stimmy,” stimulus recipients have a variety of options for how to make the most out of their check.

Many first-time investors are getting started with their stimulus checks, like this couple who invested their checks into small businesses on Honeycomb Credit. Instead of investing your stimulus check in Gamestop, why not put it into the distillery or yoga studio down the street, and do something positive with your investment?

If you’re not using your stimulus check for essential purposes, there are plenty of ways you can use that check to improve your community while building your portfolio. Investing in small businesses on Honeycomb is a way you can do both!

Here are some reasons how investing your stimulus check locally can make a difference for you and for your community.

You can earn interest by investing your stimulus check

Honeycomb campaigns allow you to invest in small businesses in your own neighborhood and help them grow. In exchange, you can earn 5-12% interest* on your investment, so you’re helping your neighborhood grow and earning a return at the same time.

Honeycomb loans are also fixed-income investments, meaning small businesses pay a fixed amount of interest on the principal loan back to their investors. So, instead of sticking your money in a savings account to accrue 0.05% APY, you could be investing it and earning 5-12% interest.

While the return is certainly one side of the investment, many Honeycomb investors are just as motivated by their ability to help small business owners achieve their dreams and to be a part of bringing small businesses to their area.

Lisa, a first-time investor who put her stimulus check from the first round into a small business on Honeycomb says, “Unlike many others, [my partner and I] have both been able to keep our jobs, so I saw Honeycomb as a great opportunity to both help small businesses during this crisis while also growing our initial investment. We felt this was a win-win, where the money could both grow and do some good instead of just sitting in a bank account.”

You don’t need to make Wall Street bets to invest in a local business

Honeycomb is all about democratizing investment opportunities. Thanks to changes in Regulation Crowdfunding, you don’t need to be an accredited investor or have a million bucks to invest in local businesses through Honeycomb. In fact, you can get started with as little as $100!

Also, a $1,000 investment makes a world of difference more to a small business than it would for a public company that’s selling stocks, who probably wouldn’t even notice your single investment.

Once you’ve found a small business that you want to invest in, investing on Honeycomb is as easy as getting a cup of coffee. Our investment process takes less than 5 minutes and is super easy through our online portal.

“We've been trying to think about what our city is going to look like on the other side of this pandemic and if it's just massive companies that had the finances necessary to get through the quarantine, then honestly that's kind of a boring place to live,” says Lisa. We have to say, we agree, which is why Honeycomb campaigns work to build up vibrant communities through small businesses!

Investing in a small business is investing in an entrepreneur’s dream

Behind every small business is an entrepreneur who’s put their time, money, and expertise into making it the best it can be. And who doesn’t like going into a small business where they can chat with the owner?

For example, Back Alley Brewing Company in Dormont, Pennsylvania is bringing a brewery to their neighborhood for the first time, and people were psyched to invest in this opportunity. Back Alley raised $200,500 for their campaign to build out their brewery from 190 investors, showing that many people in the community are excited for there to be a new neighborhood brewery!

With small, local businesses like coffee shops and restaurants, the relationship between customer and proprietor can go far beyond just the transaction. Regular patrons might see a business as an extension of their family, a third-place where they can relax and connect with people in the community, sort of like the relationship between Honeycomb alum Valley Tavern and its customers.

Valley Tavern was struggling with restrictions placed on bars in San Francisco at the start of the pandemic, so they ran not one, but two Honeycomb campaigns, raising $89,000 that went toward helping them pivot because of the pandemic and open up a kitchen!

As businesses like Valley Tavern can attest, the pandemic has really put some great challenges upon small restaurants, bars, breweries, and more, so putting your stimulus check into a local business like Valley Tavern could make a huge difference.

Invest in Main Street, not Wall Street

Honeycomb makes investing accessible and easy while building vibrant, financially-empowered communities in the process. If you’re wondering what to do with your stimulus check, consider investing it back into the community and earn a return in the process!

Learn more about investing with Honeycomb at

This blog post is for informational purposes only and should not be taken as investment advice.

* This statement assumes the offering is successful, securities are sold and repays as expected through maturity. This is a financial investment and there is no guarantee of a return; small business lending is risky and investors could lose part or all of their investment.


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