When Creditworthy Local Businesses Can Get a Loan, This Happens
Updated: 3 days ago
Since Honeycomb Credit launched in 2017, we’ve learned a few things about what happens when the small businesses that commercial banks won’t look twice at are given the opportunity to grow with a loan: they thrive, and the people who invest in them do as well.
With $16.3 million invested so far in local businesses on Honeycomb, we’re nowhere near slowing our mission to get independent businesses on Main Street the capital they need to grow. But let’s dive in and learn more about just what the impact that this model has on the communities these businesses live in.
Creditworthy small businesses create real jobs and opportunities.
Honeycomb Credit crowdfunded local business loans have helped 263 small businesses grow by accessing funding, boosting their marketing reach, and building stronger relationships. But beyond the crowdfunding campaign, what does that look like?
47 new storefronts have opened on Main Streets, creating new places for the community to gather and try new things. Not to be too sappy, but that’s 47 opening days for entrepreneurs and neighborhoods, realizing their dreams.
One such entrepreneur was Chef Adyre Mason of The Veggie in Huntsville, Alabama. She raised over $100k on Honeycomb to move to her new location, refinance high-interest debt, and rebrand her business.
What else does it look like when creditworthy small business gets fair acces to fundin? 1,142+ jobs were created by independently-owned businesses across the country, who ran a Honeycomb investment campaign. When businesses grow, entrepreneurs delegate and they hire from – where else? – their community.
This translates into real growth for the businesses themselves that raise money on Honeycomb Credit. Harvie, a local food distribution platform which has run three campaigns with Honeycomb, has grown immensely. “We nearly doubled our business,” says owner Simon Huntley. “We've gone from nearly 200 local farm products offered on our platform to 600."
On average, businesses that run a Honeycomb campaign see a 60% increase in year-over-year revenue. This is because of the growth, increased customer support, and growing marketing buzz around their business.
Minority-owned businesses have a chance to grow and make an impact.
It’s a sad reality that small business lending for minority-owned businesses is still way too low. According to the Federal Reserve, while white business owners get approved for loans 80% of the time, BIPOC-owned businesses get approved only 66.4% of the time.
At Honeycomb, the number of minority-owned businesses that we have hosted on our platform has doubled in 2022 from 24% to 51%. Additionally, our proportion of women-owned businesses has grown from 48% to 64%.
The diversity of businesses that work with Honeycomb means that we get to broaden the impact that these local businesses are making. As mentioned above, businesses that raise money on Honeycomb create jobs, and over a third of the businesses that work with us are in low-to-moderate-income communities. Those are local jobs in places that need them!
Small businesses have the chance to shine with fair, innovative, and fast funding on Honeycomb Credit
If this past year has taught us anything, it’s that when local businesses of all kinds are given the opportunity to take out a loan from their community, they go on to do great things. They create jobs, open new storefronts, and build a more vibrant neighborhood around them.
Sign up to invest in a locally-owned business.
Is your small business next to join these ranks? Learn more about Honeycomb Credit small business loans by filling out the form below.