Honeycomb Crowdfunded Small Business Relief Loan
Community-sourced loans for small businesses impacted by the coronavirus (COVID-19)
Keep your business strong with the community at your side.
For the past few weeks, the coronavirus (COVID-19) has caused massive disruption to our communities, the stock market, and our daily lives. We know that small businesses like yours are facing unprecedented uncertainty. We also know that there are hundreds of people in your community and the Honeycomb network that want to support you.
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To help deliver the working capital that businesses need, Honeycomb is offering 45-day payment free periods, 6-month interest-only periods and reducing our posting, success, and investor fees. We're also streamlining our due diligence to connect businesses with local investors as quickly as possible. As always, these loans are community funded via the Honeycomb crowdfunding platform.
Honeycomb Crowdfunded Small Business Relief Loans
Option 1
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Borrow $10,000-$50,000 in working capital
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45 day payment-free period
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3.75% interest rate over an initial 6-month interest-only payment period
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5% interest rate over a 3-year fully amortizing loan after the interest-only period
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No pre-payment penalties
Financial Qualifications
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3+ years of operating history
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Profitable in 2019
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Good credit score for 20% owners
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Debt service coverage ratio of 1.2 or higher
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Owners have positive net worth
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No delinquencies (personal or business)
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Lease agreement in good standing
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Registered and legally organized business
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Personal guaranty
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Blanket lien on the business (lien position negotiable)
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Demonstrated community support
Option 2
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Borrow $10,000-$25,000 in working capital
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45 day payment-free period
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3.75% interest rate over an initial 6-month interest-only payment period
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7.5% interest rate over a 3-year fully amortizing loan after the interest only period
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No pre-payment penalties
Financial Qualifications
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1+ years of operating history
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Breakeven or profitable in 2019
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Above average credit score for 20% owners
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Debt service coverage ratio of 1.0 or higher
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Owners have non-negative net worth
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No delinquencies (personal or business), unless explicitly related to the economic slowdown
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Lease agreement in good standing
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Registered and legally organized business
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Personal guaranty
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Blanket lien on the business (lien position negotiable)
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Demonstrated community support
Option 3
Not sure if you qualify for the first two options, or want to borrow more than $50,000? Fill out the form below and we'd be happy to see how we can help out!
​Notes: ​​
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Small businesses anywhere in the United States can apply, with the exception of California, Texas, South Dakota, and Alabama.
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Any Honeycomb alumni business that has made 6 successful monthly payments automatically qualifies for Option 2.
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Businesses must complete an application, which must pass Honeycomb's due diligence process, to take part in either relief loan option
We're in this together.
We’ve built Honeycomb by connecting great small businesses with investors right in their community. Making new connections and deepening existing ones is more important now more than ever.
To make this easier on you as a business owner, we are reducing the fee to launch a campaign from $250 to $100. We are also cutting down the success fee that we charge if your campaign hits its minimum goal from 8% to 6%, and investor fees from 2.85% to 1.4%. Capital can typically be deployed in as little as 30 days.
Watch our webinar to learn more
The video introduces how our investment crowdfunding model works, our Relief Loan program for impacted small businesses, and where we may fit into your COVID-19 cash flow strategy.
FAQs
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