Honeycomb Crowdfunded Small Business Relief Loan

Community-sourced loans for small businesses impacted by the coronavirus (COVID-19)

Make your business pandemic-proof with the community at your side

For the past months, 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.

To help deliver the working capital that businesses need, Honeycomb is offering loans starting at 3.75% interest with the ability to forgo payments during shutdowns. 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

  • Ability to forgo payments during shutdowns

  • Borrow $15,000-$75,000+ in working capital

  • 45 day payment-free period

  • 3.75% interest rate over an initial 6-month interest-only payment period 

  • 5% interest rate over a 3-year fully amortizing loan after the interest-only period

Option 2

  • Ability to forgo payments during shutdowns

  • Borrow $15,000-$50,000 in working capital

  • 45 day payment-free period

  • 3.75% interest rate over an initial 6-month interest-only payment period

  • 7.5% interest rate over a 3-year fully amortizing loan after the interest only period

Financial Qualifications


  • 3+ years of operating history
  • Profitable in 2019
  • Good credit score for 20% owners
  • Debt service coverage ratio of 1.2 or higher
  • Owners have positive net worth
  • No delinquencies (personal or business)
  • Lease agreement in good standing
  • Registered and legally organized business
  • Personal guaranty
  • Blanket lien on the business (lien position negotiable)
  • Demonstrated community support





Financial Qualifications


  • 1+ years of operating history
  • Breakeven or profitable in 2019
  • Above average credit score for 20% owners
  • Debt service coverage ratio of 1.0 or higher
  • Owners have non-negative net worth
  • No delinquencies (personal or business), unless explicitly related to the economic slowdown
  • Lease agreement in good standing
  • Registered and legally organized business
  • Personal guaranty
  • Blanket lien on the business (lien position negotiable)
  • Demonstrated community support





Option 3

Not sure if you qualify for the first two options, or want to borrow more than $75,000? Fill out the form below and we'd be happy to see how we can help out!

​Notes: 

  • Small businesses anywhere in the United States can apply, with the exception of South Dakota and Alabama.

  • Businesses must complete an application, which must pass Honeycomb's due diligence process, to take part in either relief loan option

Crowdfund in 4 easy steps

1

Fill out the form below

Tell us about your business & which relief loan program interests you.

2

Talk to our team of experts

Jump on a call with our small business experts to discuss putting together an application.

3

Launch and tell your story!

After being accepted, get your working capital crowdfunded by your community.

4

Keep your business strong

Make interest-only payments to your community for 6 months, then principal + interest payments.

To learn more, check out some of our live campaigns.

Cleaning medical uniforms during COVID-19

"We really took a step back and looked at the situation we were in. During COVID-19, no one is going out, so we took a hard look at where the demand was at. After raising $25,000 on Honeycomb, I thought to myself, 'If I did that in 3 weeks, what else can I do in 3 weeks?'"

— Justin Strong, Strong's Cleaners

FAQs

Can you provide an example of how this works?


As an example, if Rudy’s Restaurant met all of the qualifications for Option 1, Rudy and his team would be invited to create an investment crowdfunding campaign. Rudy is borrowing $50,000 at 5% interest over 42 months. Rudy would share this campaign with his customers, fans, and community members who want to see the restaurant back in full form after the pandemic and who in turn can invest as little as $100. After Rudy successfully raises $50,000, he would begin making interest-only payments of just $156.25 for 6 months. After that, he will make monthly principal + interest payments of $1,498.54 for the next 36 months. Rudy’s payments would go back to his investors who supported him, and Rudy could prepay at any time with no penalties.




What if I don't qualify for either option?


If your small business doesn't meet the qualification criteria as listed above, and you are interested in community funding as a tool to help support your business, then we would be glad to learn more about your business and see if there is an opportunity to work together. Please complete the form below to schedule a call with one of our small business experts.




What if I need more than $75,000?


If your business needs more than $75,000, then please reach out to discuss with one of our small business experts to see if a larger loan crowdfunding campaign is feasible for your business.




How quickly can I get the capital?


That depends on how long the campaign runs, and how quickly your business reaches its funding goal. Generally, we can have funds deposited within 30 days.




How is Honeycomb compensated?


We charge a posting fee of $100 when you launch your campaign and a 6.0%-8.0% success fee after you reach your funding goal. In addition, to cover the expenses associated with every investment, we charge investors a 2.85% investment fee. Capital can typically be deployed in as little as 30 days.





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