SMBX is a debt focused crowdfunding platform where small businesses may seek financing from a bank alternative. As most people know, small companies with scant credit history struggle to access credit from banks. SMBX seeks to alleviate this enigma by operating a marketplace where investors can participate in debt offerings issued by a small business.
As was previously reported, the SMBX “small business bond” is a vehicle for businesses to issue bonds in $10 increments carrying a fixed interest rate.
The platform also provides a secondary transaction platform where the bonds may be traded although there is a holding period required by the Reg CF securities exemption.
All of this powered by blockchain with the bonds being created using smart contracts.
The SMBX App is currently raising capital for Bernal Cutlery, a “globally renowned cutlery shop” located in the Bay Area, that is offering a fixed monthly return of up to 8%.
Under Reg CF, issuers may raise up to $1.07 million from both accredited and non-accredited investors. Frequently, platforms will do a “side-by-side” Reg D offering to enable a raise greater than the one million cap.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!