Usually, the coasts tend to provide unique tech services to the middle of the country. Today, Crowdfund Insider received a note that Pittsburgh-based Honeycomb Credit, a Reg CF funding portal, has completed its first securities offering for a business operating in San Francisco.
Honeycomb Credit is a bank replacement platform providing access to loans to smaller firms – frequently these businesses have been turned away by old banks.
Not too long ago, CI covered a group of issuers based in Cleveland leveraging the online capital formation platform. Honeycomb Credit has now extended its reach all the way to the west coat to provide access to capital for a small business.
The campaign was for the Valley Tavern, a neighborhood sports bar in San Francisco, that claims to have the best beer garden in the city (as voted by San Francisco magazine).
The Valley Tavern raised a $50,000 loan supported by 35 individual investors. The loan holds a term of 36 months and pays an interest rate of 5.0%. The specific security is a “Honeycomb relief loan,” a COVID-19 induced product, which includes a 6-month interest-only period at 3.75%, followed by a 30-month fully amortizing period at a 5.00% interest rate. It appears that the offering closed early.
To quote the offering page:
“The Valley Tavern is many things to many people– it is a sports bar, an Irish bar, a community hub, and most importantly, a safe space for all. Customers often say that the Valley Tavern is the only bar we would feel comfortable bringing our Mom one night and our friends the next. Our diverse clientele and friendly atmosphere make it the only bar in the city where you can comfortably host both a retirement party and a 21st birthday. To stay afloat during COVID-19, we are raising $50,000. There will be a 6-month interest-only period at 3.75%, followed by a 30-month fully amortizing period at a 5.00% interest rate.”
The funds will help the Tavern pay past due bills and re-stock inventory. The business has been closed since March 16th and beyond some t0-go sales it has been pretty hard on the Tavern to keep things going. The Valley Tavern is a family business that believes, with the help of friends and neighbors, they will be able to survive and thrive – along with the help of Honeycomb credit.
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