Honeycomb Credit, a FINRA-regulated funding portal that provides online capital formation for small businesses, is reporting that it has surpassed $25 million in money raised for small businesses.
Honeycomb can help SMEs sell securities online under the Reg CF (Regulation Crowdfunding) securities exemption. Firms may raise up to $5 million from anyone – as long as you are over 18. Honeycomb has emerged as one of the top issuers under the securities exemption, which was created under the JOBS Act of 2012.
Honeycomb operates like a bank, with firms issuing debt or getting loans that individual investors support. While Honeycomb is based in Pittsburgh, PA, the platform has facilitated online lending in all 50 states.
Honeycomb describes itself as a “first-of-its-kind community investment platform.” Investors may earn up to 14.25% by investing in locally owned businesses around the country. Many businesses are restaurants, breweries, or other small businesses that serve a local community, with customers providing the capital to grow. But while customers may provide much of the funding, investors may participate from anywhere in the US.