Bank replacement platform Honeycomb Credit announced on Wednesday it is now offering loans to small businesses that are in need of working capital during the coronavirus pandemic. As of March 18th, there are 7,038 cases of the virus with 97 total deaths.
According to Honeycomb Credit, each of the Small Business Relief Loan will include a 45-day payment free period and will be interest-only for 6 months. Capital may typically be deployed in as little as 30 days. The platform noted that in order to support small businesses even further, it is also reducing its posting, success, and investor fees. Small businesses anywhere in the U.S. may apply, with the exception of California, Texas, South Dakota, and Alabama. Speaking about the loan option, Honeycomb CEO, Geoge Cook, stated:
“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 are facing unprecedented uncertainty. We also know that there are hundreds of people in every community, and in the Honeycomb network that want to support them.”
Founded in 2017, Honeycomb Credit’s platform allows local businesses to borrow expansion loans from their own customers and also get access to fair credit, while investors may now invest locating while supporting their favorite small businesses.
“By allowing anyone to invest in their own local economy, Honeycomb Credit aims to unlock growth opportunities for small businesses to build vibrant, financially empowered communities.”
Honeycomb operates in Pennsylvania, New York, Maryland, Michigan and Ohio. It is a FINRA approved crowdfunding portal offering securities under Reg CF. Businesses may borrow up to $100,000 for expansion purposes, and community members can start investing for as little as $100.