Leading Reg CF crowdfunding platform Wefunder announced earlier this week a new loan product to help small businesses struggling with the economic impact of coronavirus. According to WeFunder, the Coronavirus Crisis Loan, is available now to any small business, enables businesses to crowdfund a loan from customers, family, friends, and the Wefunder community of 400,000 investors to provide critical cash flow during this economic crisis at a reduced interest rate. The Coronavirus Crisis Loan terms include:
Loans from $20,000 to $1 million- Repayments deferred until 2021
- Repayments based on revenue
- Lenders can opt to lend for as low as 3% simple (non-compounding) interest
The launch of the loan comes just after WeFunder announced the Fight the Virus Challenge, a three-month accelerator to invest in startups tackling the crisis in sectors including biotechnology, senior care, and remote education. While sharing more details about the loan and accelerator, Jonny Price, Director of Fundraising at Wefunder, stated:
“Small businesses critically need access to cash in order to survive, and simultaneously, customers and community members desperately want to help. Small businesses should be exploring multiple options for raising capital immediately, and one of those options can be their friends, family, and customers who love them and want to support them.”
Nick Tommarello, Wefunder’s CEO, added:
“This is our generation’s moment to rise to the occasion. We’re 100% focused on doing our part. We can’t match the heroism of our doctors and nurses, but we can help save more small businesses, and fund more startups tackling this crisis head-on.”