The SMBX Blog

Why We Created the Small Business Bond

SMBX — Wed, 09 Apr 2025 17:30:49 GMT

A message from the CEO

Hello.

My name is Ben Lozano, I’m CEO of SMBX.

I’d like to say a few words about what we’re building together with you, our clients.

What We’re Building

At SMBX we’re building the world’s first Small Business Bond™ marketplace.¹

Some may think the term “Small Business Bond” is just a clever marketing concept for a loan that’s issued on our marketplace.

But it’s more than that. It's about giving local businesses a powerful financial tool traditionally reserved for corporate giants. For just as Coca Cola, Apple, John Deere and other large corporations can sell Bonds to people who want to invest in them, the Small Business Bond now allows US small and medium businesses to do the same.

What We Are

SMBX is a Small Business Bond marketplace, where qualified small and medium businesses raise loan funds from their customers, community and other people who want to invest in them.

And the people who invest in them earn fixed, monthly payments of principal and interest.

What We Do

We want the Small Business Bond to become a new-era, scaleable, capital markets asset class. But well-functioning capital markets need financial service providers to support the activities taking place therein.

So yes, we are a marketplace. But we also provide our clients –both businesses issuing Bonds and investors buying Bonds– the financial services and technologies that allow them to sell and buy Bonds, and perform all the other related activities that take place on our marketplace.

What This Means

The result is that for the first time in the history of American finance, small and medium businesses have a new loan financing option –yes, they can still take out a private bank loan, but they can also now issue a public Bond on our marketplace. And also for the first time, people can now directly invest in Bonds issued by small and medium businesses in their communities, and share in the financing profits as these businesses grow and thrive.²

What We’ve Done So Far

We’re still a young company.

On the supply side, we’ve listed 230 Businesses worth just over $35M. Not all the Bonds have filled. And a few have defaulted. But overall our Bonds have returned nearly $9.5M worth of payments to investors, to date.

On the demand side, we have 6K retail clients who have purchased Bonds. And we’ve also recently seen a few smaller financial institutions trickle onto our marketplace and begin buying Bonds.

What Is Our Goal

Our goal is to build a new era small business capital marketplace.

Why is it Our Goal

We’re doing this because we believe people want power over their money.

Our 3 Core SMBX Principles follow from this belief:

Principle #1. Give people the ability to invest in the kind of world they want to live in.

Although our marketplace is still relatively small, we offer a wide variety of Offerings listed by businesses across geographies (e.g. the Bay Area CA, Madison WI, Cumberland MD), industries (e.g. restaurants, health & wellness, CPG, etc.), and other segments (e.g. vegan, women-owned, Asian-owned, etc.).

In this way, people can decide for themselves what types of businesses they want to invest in, and then share in the financing profits when those businesses pay back their Bonds, grow, and thrive.

Principle #2. Make investing in small businesses easy.

Our financial services team and technology stack coordinate all Bond purchase orders for live Offerings, all the settlement and reconciliation of these orders when the Offerings close, all the recordkeeping throughout the lives of the Bonds, and of course all the money flows that take place along the way.

This way, our investor-clients can spend their time deciding what Bonds to buy, and therefore what kind of world they want to support with their investments.

Principle #3. Make investing in small businesses profitable.³

To be clear, we cannot say, and are not saying, that investing in Small Business Bonds is safe or certain to be profitable.

In fact, we should clarify that federal regulations require that we inform you:

All statements made here should not be construed as promissory. There is no guarantee that businesses issuing Bonds on the SMBX will survive or partially or fully service their Bonds. There is no guarantee that principal and interest will be made. Investing in Small Business Bonds involves financial risks, including loss of money invested.

However, as a principle, we believe it’s possible for us to perform certain activities that make investing in small businesses a safer, more viable, and legitimate investment opportunity –and that as financial service providers we should strive to do so.

Two things immediately stand out:

i. Competent Underwriting Standards.

Even before we approve a business to list a Bond Offering, our underwriting team evaluates the most recent financial statements of the business, including their tax returns, to assess the financial health of the business applying to list an Offering.

We also evaluate other non-financial metrics as well. And we run background checks on the business owners, as well as other due diligence processes.

As a result, we turn away more businesses than we approve to list Bonds on SMBX.

ii. Diversification & Our Concept of the Small Business Bond Series.

Portfolio diversification theory states that spreading your investments across different industries, geographies, or other segments will reduce your overall risk, by reducing the negative impact of any single investment's poor performance.

At SMBX we strongly believe in the importance of diversification, especially when investing in small and medium businesses –and as a result, we organize our Offerings under different Bond Series.

For example:

The US Small Business Bond Index.

Our highest level of Bond Series is our US Small Business Bond Index, which is an index of all Bonds that have ever been issued on SMBX.

Our hope is that one day we can achieve the size and scale of our marketplace, such that people can get up in the morning, turn on the news, and check the US Small Business Bond Index to gauge the borrowing health of small businesses in the United States.

Other Bond Series.

But we also recognize that different people may want to “gain exposure” to specific small business geographies, industries, or other segmented affiliations, based on their own decision making –which is also consistent with our Principle #1, above.

As a result, we currently have 50 different Bond Series –from The Michelin Guide Bond Series, to The Women-Owned Bond Series, and The Bay Area CA Bond Series, etc. In future posts we will be writing more about this.

What’s Next

We’re just getting going, but we’ve got some new things coming out that we need your help scaling.

Referral Program.

We launched an Issuer Referral Program, which pays $500 to any person who refers a small business that eventually lists a Bond on our marketplace.⁴ This is consistent with Principle #1(Give people the ability to invest in the kind of world they want to live in), as well as our belief that the wealth created by financial activity should circulate back through the communities that produce it.

Gift Bond Program.

We just launched our Gift Bond Program, which allows SMBX clients to purchase and give Bonds to their family and friends.⁵ This is consistent with Principle #2 (Make investing in small businesses easy), as well as our belief in the power of compounding interest: after all, why give your 18-year old kid $1000 for their birthday when you can give them $1000 worth of Gift Bonds that will pay them principal and interest monthly for the next 4 or 5 years?⁶

New Product Features & Educational Materials.

We’re also working on new product features, such as a search function for different Bond Series, to better allow our clients to find businesses that fit the geographical area, industry, or segment they want to invest in.

And we’re working on new educational materials, such as information graphs that track and benchmark the performance of various Small Business Bond Series against other capital markets comparables.

One of the main reasons we’re working on information graphs: while overall Bond repayment performance has remained strong, when there are repayment delinquencies or even defaults, our clients have expressed their interest to better understand the impact on their overall investment return.

We acknowledge that our investors want transparency about delinquencies and its impact on their investment return, and we will strive to continue to get better at providing this.

What We Need

So as we head deeper into 2025, we invite you to continue to participate in the new era small business capital market we’re building together.

Invest in new Bonds, refer a great local business, or gift some Bonds to someone you love.

We created the Small Business Bond because we believe that people want power over their money. It’s time for us to take control of our money, and invest in the kind of world we want to live in together!

Ben

¹SEC File No: 7-129

²Statements made here should not be construed as promissory. There is no guarantee that businesses issuing Bonds on the SMBX will survive or partially or fully service their Bonds. There is no guarantee that principal and interest will be made, such as in cases of nonperformance, missed payments, or default. An investment in a small and medium business or startup involves significant risks, only some of which are described here, and is suitable only for investors who have limited need for liquidity in their investment, who can afford the potential loss of their investment and who otherwise meet the conditions for eligibility set forth in the SMBX terms of service.

³Statements made here should not be construed as promissory. There is no guarantee that businesses issuing Bonds on the SMBX will survive or partially or fully service their Bonds. There is no guarantee that principal and interest will be made, such as in cases of nonperformance, missed payments, or default. An investment in a small and medium business or startup involves significant risks, only some of which are described here, and is suitable only for investors who have limited need for liquidity in their investment, who can afford the potential loss of their investment and who otherwise meet the conditions for eligibility set forth in the SMBX terms of service.

⁴The T&C of the Referral Program can be found here.

⁵The T&C of the Gift Bond Program can be found here.

⁶There is no guarantee that principal and interest will be made, such as in cases of nonperformance, missed payments, or default.

SMBX 2024 Wrap-Up

SMBX — Fri, 21 Mar 2025 20:00:04 GMT

SMBX 2023 Wrap-Up

SMBX — Tue, 02 Jan 2024 16:37:52 GMT

SMBX Holiday Gift Guide

SMBX — Mon, 04 Dec 2023 20:55:39 GMT

SMBX is Keeping It Local this holiday season, so please prioritize small businesses in your own neighborhood when purchasing gifts, gift cards, and going out to celebrate with colleagues and loved ones.

We also have a few suggestions from small businesses around the country that have raised capital on the SMBX marketplace this year. They may be in your neighborhood too!

Links:
Arcay's Chocolates
Cooper Greyson Candle Co.
Mesmerize
Mise Footwear
Rize Up Bakery

SMBX in the City: Washington, D.C.

SMBX — Thu, 24 Aug 2023 14:22:23 GMT

Twenty-six (26) small business owners in Washington, D.C. have raised $2,072,920 from everyday investors in their community and across the country.

SMBX has also partnered with D.C. Mayor Muriel Bowser to create the D.C. Rebuild Bond program, allowing D.C. business owners to raise capital without fees.

Wells Fargo contributed $500,000 to provide technical assistance through The Coalition for Nonprofit Housing and Economic Development (CNHED) to help business owners prepare their books to raise capital.

Businesses that have raised on the SMBX marketplace include

El Tamarindo $101,940
Maketto $130,890
Sticky Fingers Sweets and Eats $120,350
CFO Services $60,450
Chaia Tacos $25,000
Lucky Buns $204,850
Innovative Recordings $225,230
Triune Solutions $183,120
TraxMethod $31,090
Trini Vybez $41,060
Arepa Zone $115,210
Aurora Market $51,170
Shepherd Park Children’s Academy $29,190
Style Bar DC $56,410
Zeleno $51,370
ToolBox $52,750
Upbounders $200,000
EduMatch $25,000
et Olvia $61,360
Brightwood Design+Build $92,480
Arcay Chocolates $124,000
GELAT’OH $25,000
Donisima $40,000
EduMatch2 $25,000
Erin Leonard Events $46,220
Big Bear Cafe $151,880

Small Business Bonds: A New Way for D.C. Residents to Invest Locally

(Technical.lyDC) If you were one of many who made an effort to put a little extra in the tip jar over the past 18 months, DC has a new way you can further support local businesses.

Mayor Muriel Bowser, the DC Office of the Deputy Mayor for Planning and Economic Development and community investing group SMBX are partnering up to launch DC’s Rebuild Bond program, via the Equitable Capital Access Fund.

The goal: allow local patrons and investors to put their money directly into the businesses in their neighborhood.

It works like this: instead of borrowing from the bank or government a la PPP loans, business can apply to borrow from a community of investors made up of, well, their community. Interested local investors can pledge as much or as little as they’d like, and are repaid through SMBX (CFO Services Group in DC and Garrett Music Academy in Owings, Maryland are already listed on the marketplace site). DC government is investing $500,000 in the program, which will specifically target Wards 5, 7 and 8, and it says the investment will fuel $5 million back into the city. (Read more)

D.C. Rebuild Bond Program Benefits Small Black-Owned Businesses

(Washington Informer) For 20 years, Innovative Recordings, LLC has not only provided a platform for musical acts but launched a school of performing arts and explored entry into the snack food industry. With its inclusion in a D.C. government-supported bond program, Innovative Recordings LLC will soon expand its operations, much to the benefit of Ward 7 and 8 residents.

Through the DC Rebuild Bond Program, Innovative Recordings, LLC and at least seven other local businesses have issued small business bonds, for as low as $10 a piece, to customers and community members in the District and around the country. Those who purchase these bonds immediately receive monthly payments on the principal and interest.

For months, Innovative Recordings LLC, based in Southeast, has been well on its way to raise $500,000 through the DC Rebuild Bond Program. Innovative Recordings LLC founder Charles “Shorty Corleone” Garris said the endeavor, which wraps up in a couple of weeks, has already expanded the visibility of the Capital Kidds musical group and his snack brand, Crank Chips. (Read more)

Mercer County Launches Small Business Investment Program with SMBX

SMBX — Wed, 07 Jun 2023 16:09:00 GMT

Partnering with SMBX’s small-business marketplace will allow local business owners to raise capital through retail investors in the community and nationwide. People can invest in small businesses for as little as $10 and be repaid principal and interest monthly.

TRENTON, N.J.--Mercer County Executive Brian M. Hughes announced the launch of Mercer County's new Small Business Investment Program to help small businesses raise funding directly through retail investors in their communities and nationwide.

Through a competitive bid process, the County selected SMBX, the online marketplace connecting small businesses and everyday investors, to run the program.

Mercer County has set aside $500,000 in American Rescue Plan Act (ARPA) funding to manage the program and drive retail investment to at least 30 Mercer County small businesses on the SMBX marketplace. The funds will keep the program free for small businesses.

“Mercer County continues to invest in our small-business community,” said County Executive Hughes. “On the heels of the Mercer County Small Business Grant program, this SMBX initiative will allow start-ups and established businesses alike to grow and expand through the infusion of much needed capital.”

“Small-business owners nationwide are choosing to raise funds through everyday investors in their communities, giving people a chance to earn money by investing in the businesses they love,” said Ben Lozano, co-founder and CEO of SMBX. “We’re excited to partner with Mercer County to help businesses raise funds with no fees for owners or investors.”

Small-business owners can apply to raise funds through the Mercer County Office of Economic Development, SMBX, and the African American Chamber of Commerce of New Jersey (AACCNJ).

SMBX and the Mercer County Office of Economic Development will work closely with business organizations and chambers of commerce, including the Princeton Mercer Regional Chamber, the AACCNJ, the Capital Region Minority Chamber of Commerce and the Latino Merchants Association, to market the program and provide technical assistance to small businesses to prepare them to raise capital through SMBX.

“We are pleased with the decision of the Hughes Administration to support our efforts to expand capital access to the members of the African American Chamber of Commerce and businesses throughout Mercer County,” said John E. Harmon, Sr., IOM, Founder, President & CEO, AACCNJ. “It is through the efforts of forward-thinking leaders that we can collectively collaborate to advance best practices that can lead to transformational outcomes; the resulting benefit will be a more competitive Mercer County.”

Here’s how the program will work:

Businesses can raise money by issuing Small Business Bonds on the SMBX marketplace.
Instead of borrowing from a bank, businesses borrow from investors in their community and across the country, paying them back monthly at fixed interest rates through SMBX.
Small businesses are not required to provide a personal loan guarantee.
SMBX completes the underwriting at no cost, the business reviews it, and SMBX files it with federal regulators.
The SMBX marketing team works with the business owners to offer and promote their raise.
Once the raise is completed, the business makes monthly fixed payments to its investors so it knows exactly what to expect for its cash flow.
By purchasing Small Business Bonds in $10 increments through the Mercer County Small Business Investment Program, investors can earn a meaningful monthly return by lending money to their favorite local small businesses while gaining more control over their money.

Small-business qualifications:

Physical business located in Mercer County;
For-profit business registered with the State of New Jersey, and formed on or before April 10, 2023;
30 employees or fewer, with part-time equating to one-half a full-time employee;
Less than $10 million in gross revenue;
Preference is given to those businesses that have not received specific business grant assistance from the federal, state, or local government entity; and,
National franchises, real estate businesses, and independent consultants are ineligible.

The Mercer County Small Business Investment Program will run through September 2024.

SMBX in the City: San Francisco Bay Area

SMBX — Sat, 01 Apr 2023 15:46:00 GMT

San Francisco Bay Area small business owners are increasingly using SMBX to raise funds from everyday investors in their community and across the country.

Twenty-five (25) small businesses have raised $4,604,970 from everyday investors since 2020, including:

Boichik Bagels (Berkeley) $1,070,000
Humphry Slocombe (SF) $250,000
Outta Sight Pizza (SF) $100,000
Poppy Bagels (Oakland) $150,000
Rize Up Bakery (SF) $297,630
Volcano Kimchi (SF) $124,000
Osito (SF) $76,880
Black Hammer Brewing (SF) $100,000
Degrees Plato (SF) $150,540
Popoca (Oakland) $112,310
La Perla (Oakland) $99,880
CADraftTech (Oakland) $35,000
Pyro's Pastrami (Berkeley) $100,000
Uji Time Cafe (Berkeley) $87,220
Flora Grubb Gardens (SF) $500,000
Bernal Cutlery (SF) $139,380
Hacking Solutions (Oakland) $113,370
Het Say (San Jose) $124,000
Young Kobras (San Carlos) $53,810
Manhattan Zodiac (SF) $70,000
Bad Walter’s Bootleg Ice Cream (SF) $139,140
White Label Chocolates (Santa Cruz) $48,620
Palm City Wines (SF) $400,000
Butter and Crumble (SF) $104,550 (ongoing)
Hella Bagels (Oakland) $158,640 (ongoing)

Oakland's Reesa Kashuk of Poppy Bagels

Is the Future of Restaurants Grassroots Funded?

Regulation crowdfunding allows people to directly lend to businesses they want to see grow — and earn profits from having done so.

(Eater San Francisco) SMBX stands for Small and Medium Business Exchange and works by issuing bonds (loans that come from individuals instead of a bank) from business owners to everyday investors in increments of $10. Anyone with a credit card or a bank account can buy bonds in local businesses on SMBX, which entrepreneurs like Kashuk are then required to pay back with interest over time. Kashuk first heard of the exchange from other local businesses already using it, specifically the famed San Francisco ice cream brand Humphry Slocombe and the Salvadoran pop-up Popoca. “I was looking for a way to raise money that was relatively affordable and flexible, and SMBX fit that bill,” Kashuk says. “The bonus was that my community could get involved in a real and tangible way.” (Read more)

Boichik Bagels Raises $1 million to Build Bagel Manufacturing Plant

Turned Away from Banks, Some Local Merchants Turn to ‘Small Business Bonds’

(The San Francisco Standard) SMBX was formed to provide access to capital without forcing entrepreneurs to give up equity. Since launching in February 2020, roughly 70 businesses listed on SMBX’s platform have raised more than $6 million to help support and expand their ventures. “I’m not sure if any loan could be considered fun, but if a loan could be fun, it’d be this one,” Osumi (Humphry Slocombe) said. “You’re getting the same funding at the same rate, but the money’s coming from real people who are getting paid back, rather than going into the black hole of a bank.” (Read more)

How can I start raising funds on SMBX?

SMBX — Mon, 13 Feb 2023 20:27:12 GMT

So you want to raise funds for your business from your community? Let's get you started!

To qualify, you need to be an established business with revenue. We're going to need tax returns, financial statements, and other information on how your business is organized.

We'll also need to know how much you'd like to raise and how you're going to use the funds. For instance, are you hiring new staff, purchasing equipment, opening a new location, or maybe you're consolidating debt?

Then, we'll complete your paperwork, you'll review it, and we'll file it with the SEC. This process can take a few weeks, but once you're approved, you'll be ready to start your campaign on the SMBX marketplace.

What is a Small Business Bond?

SMBX — Mon, 13 Feb 2023 20:14:49 GMT

The Small Business Bond is a new way for you to invest in the small businesses that you love.

A Bond is like a loan, but instead of borrowing funds from a bank, a small business is borrowing funds from everyday investors like you.

Anyone with a U.S. bank account or credit card can choose the businesses that they want and purchase available Bonds, and they'll receive monthly principal plus interest payments.

Small Business Bonds are designed to amortize over time. So that means, as more of the principal is paid back, the interest rate on the Bond is only applied to the remaining principal.

We've structured these payouts to be even over the life of the Bond so each month an investor can expect the same payout amount.

The Small Business Bond is the future of finance. It gives small businesses a better way to raise funds, and it gives people more control over their money.

SMBX in the News

SMBX — Mon, 13 Feb 2023 19:56:00 GMT

For all media inquiries, please contact peterbarden@thesmbx.com.

As Bank Lending Tightens, Small Businesses Turn to Customers to Raise Money
The Wall Street Journal, July 13, 2023

As it gets harder for small businesses to land conventional loans, more of them are turning to a new source of funding: their customers. Using a relatively little-known financing tool, businesses are able to sell bonds to hundreds of customers and community members—with some investing as little as $10.

These businesses are capitalizing on a regulatory change that lets them solicit investments from non-accredited investors—those with relatively modest income or assets. As they have watched beloved local businesses struggle since the pandemic began, these investors see the bonds as a way to support those businesses while also generating a financial return.

Consider San Francisco-based Palm City Wines, which launched during the early months of the pandemic and was unable to invite customers into its store. Customers formed lines around the block to buy wine and hoagies.

“It certainly made me want to support them,” says Mateo Kashuk, a 32-year-old software engineer. “I remember waiting outside for food to be ready, and there were other people doing the same. It was nice to have an opportunity to interact with other people from the neighborhood and have some semblance of normal life.”

So, when Palm City Wines set out to raise $250,000 by issuing a small-business bond in April through SMBX, Kashuk pledged $200. Within five days, the Palm City Wines bond—which pays 9.5% interest on customers’ investment monthly over five years—was oversubscribed. The company increased the cap on the amount it could raise, ultimately raising more than $400,000.

Need Capital? Portland startups raise funds selling bonds on SMBX
Portland Business Journal, July 13, 2023

Exactly 1,370 investors have poured nearly $1.3 million into 11 Portland area companies over the last three years through the SMBX platform.

The investments move through what the online platform calls small business bonds. Small businesses sell the bonds at between 7% and 11% interest, with loan terms between two and seven years. To list on the SMBX marketplace, companies submit two years of GAAP financials to help develop the terms of the bond.

Portland has embraced the platform, said co-founder and CEO Ben Lozano. Others are Washington, D.C., where SMBX has a partnership with the city, as well as San Francisco and Oakland, Calif.

Move over, Wall Street: Denver small businesses turn to local investors to raise debt on new platforms
Denver Business Journal, May 17, 2023

“Platforms such as SMBX and Mainvest are gaining traction in the Denver area, giving local business owners a new path in alternative financing. . . . For Garcia, finding the right investor has been the toughest core component. With SMBX and other platforms, he said investors are already waiting to view his company. Ohiya recently raised over $200,000 on SMBX.

Palm City Wines Is Planning a Second Location
Eater San Francisco, April 27, 2023

"The owners have turned to SMBX, a fundraising platform that’s become increasingly popular with Bay Area small businesses. Unlike platforms such as GoFundMe, SMBX allows small business owners to collect bonds from the public, which function like microloans. 'We’re not one for handouts and that’s why we have partnered with SMBX to help fund our next venture by announcing our new bond offering.'"

San Jose Food Vendor Finds Novel Way to Raise Money
San Jose Spotlight, April 10, 2023

The owner of Hết Sẩy has found an innovative solution to pay for a more permanent location: an online crowdfunding marketplace with a unique twist for small businesses known as SMBX. The platform helped DuyAn Le, owner of the food pop-up, raise $124,000 in less than a month, a story of success that raises hope for small businesses looking for a path to growth or sustainability. “It feels amazing,” Le told San José Spotlight. “People believe in us.”

Footwear Startup Mise Turns to SMBX to Raise Capital
The Portland Business Journal, March 27, 2023

“Platforms like SMBX provide another viable option for our founders to access the capital they need while also giving them the opportunity to engage the community to share in their success and growth," said Rick Turoczy, general manager of the Portland Incubator Experiment. "It’s that community angle that makes these sorts of bond sales especially compelling for Portland startups because it directly aligns with our ‘buy local’ ethos of supporting our homegrown companies."

Alchemy Wine Bar Expands with Cut Flower Farm in Westfield
Buffalo Business First, February 9, 2023

"The partners began raising funds Jan. 13 for the expansion with a small business bond offering through SMBX, offering investors a 9.5% return over five years for investments starting at $10. ‘Instead of just asking friends and family like my mom or my aunt for $10,000 with nothing to give back, we wanted to pay people back with a little return,’ McIntosh said.”

Boutique design firm led by former Miss Teen D.C. raises nearly $100,000 to scale
Washington Business Journal, January 18, 2023

Brightwood Design closed a capital raise of $92,480 from 103 investors on the SMBX marketplace, specifically DC’s Rebuild Bond program sponsored by the Office of the Deputy Mayor for Planning and Economic Development.

3 Sisters Garlic Is Thriving Because of Grit, Perseverance, and a New Platform Aimed at Helping Small Businesses Grow
Buffalo Rising, January 13, 2023

The 3 Sisters Garlic team used SMBX to raise $50,000 for new equipment, working capital, and property improvements. SMBX is the Small Business Bond marketplace that connects small business owners with everyday investors in their community and throughout the country. The demand to invest in this business was high, with 125 investors exceeding the businesses investment goal by over $12,000.

Bratton Construction Selling Small Business Bonds as it Gears up for Growth
The Portland Business Journal, November 16, 2022

“We are really excited about this. SMBX for us is a game changer,” said CEO Sharon Maxwell. “As a minority, woman-owned business in a male-dominated industry going to the banks and trying to secure a line of credit and capitalize to be able to scale and grow, we have struggled over the years. Even after showing good results and great financials we are still (told) that is not enough.”

After Bootstrapped Growth, DC Game Brand Upbounders Is Making a Community Investment Move
Technical.ly DC, October 17, 2022

The company is seeking small business bonds on the SMBX marketplace. "I really like being able to tell people: I'll pay you back," founder Kemi Tignor said of regulation crowdfunding. She hopes the SMBX program will be a community-based, transparent way for the company to grow.

Wells Fargo Infusing DC Small Business Program with Cash
Washington Business Journal, September 27, 2022

Wells Fargo is investing $500,000 to expand the reach of a D.C. program through which small businesses can raise money from local investors on the SMBX marketplace. The nation's third-largest bank is providing a grant to D.C.’s Coalition for Nonprofit Housing & Economic Development (CNHED) with which CNHED will provide technical assistance to small-business owners looking to participate in the District’s Rebuild Bond Program.

Boichik Bagels Opening West Berkeley Plant via SMBX Small Business Bonds
KGO ABC-7, San Francisco August 30, 2022

Emily Winston tours her new bagel manufacturing facility being funding by a $1 million capital raise from her community on SMBX.

Community Co-Pack, Local Contract Manufacturer, Looks to Future
KOIN TV Portland AM Extra, August 12, 2022

Portland-based manufacturer is expanding, and giving you the opportunity to invest, through the SMBX marketplace.

Turned Away from Banks, Some Local Merchants Turn to Small Business Bonds
San Francisco Standard, July 29, 2022

SMBX was formed to provide access to capital without forcing entrepreneurs to give up equity. Since launching in February 2020, roughly 70 businesses listed on SMBX’s platform have raised more than $6 million to help support and expand their ventures. “I’m not sure if any loan could be considered fun, but if a loan could be fun, it’d be this one,” Osumi said. “You’re getting the same funding at the same rate, but the money’s coming from real people who are getting paid back, rather than going into the black hole of a bank.”

Boichik Bagels Banks on ‘Regular People’ as Investors
San Francisco Business Times, July 21, 2022

Emily Winston, who opened the College Avenue flagship in 2019, has launched a campaign on financing platform SMBX, a San Francisco-based company that enables small businesses to sell securities to a multitude of micro-investors pledging as little as $10. SMBX has been used by local food brands in the past — Humphrey Slocombe raised $250,000 just over a year ago — but Winston is looking to take it further than any business has yet with a $1 million target fund raise.

Community Co-Pack Launched Small Business Bond Sale on SMBX
Portland Business Journal, July 18, 2022

Community Co-Pack has launched a campaign on the SMBX platform to sell bonds with a 7.5% interest rate and 60 month term. The startup is the latest local business to turn to this platform. Better Bean, The Cookie Department and Culmination Brewing have also raised money this way.

As Interest Rates Rise, Small Businesses Should Engage Their Community as Investors
Inc. Magazine, June 8, 2022, by Ben Lozano, Co-Founder and CEO, SMBX

With inflation skyrocketing to 8.5% since last year, the Federal Reserve is expected to continue to raise interest rates aggressively in the coming months … mak(ing) it even more expensive to borrow money, especially for small business owners. … Another option is crowdfunding debt, issued by companies including my own, SMBX. In this scenario, business owners retain 100% ownership. Investors purchase bonds for as little as $10 and are repaid monthly for loaning money to the business. This approach lets business owners secure fixed rate debt.

D.C. Bond Program Benefits Small Black-Owned Businesses
Washington Informer, June 2, 2022

Through the DC Rebuild Bond Program and SMBX, Innovative Recordings, LLC and at least seven other local businesses have issued small business bonds, for as low as $10 a piece, to customers and community members in the District and around the country. Those who purchase these bonds immediately receive monthly payments on the principal and interest.

Meet Two Local Businesses Selected for DC’s Rebuild Bond Program
Technical.ly DC, May 12, 2022

Nearly six months after its launch, DC’s Rebuild Bond Program is hard at work building capital for local businesses. The program, which arose from a partnership between the DC Deputy Mayor’s Office of Planning and Economic Development and community investor SMBX, just added two more DC businesses to its marketplace.

Overwhelming Demand for Bay Area Bagels is Driving a New Wave of Expansion
San Francisco Chronicle, May 11, 2022

Poppy saw a whopping $100,000 increase in gross sales over the last year, thanks primarily to adding the farmers’ market. To pay for the new space, Kashuk used crowdfunding platform SMBX, which told her it would likely take 60 days to reach her $150,000 goal. She met it in 11 days. “It was not so much a race” against other expanding bagel pop-ups, Kashuk said, but “it was hard to see how I could grow with the current model.”

Is the Future of Restaurants Grassroots Funded?
Eater San Francisco, April 25, 2022

For her bond offering of $150,000, Kashuk received an interest rate of 7 percent from SMBX to be paid back over five years. She had also considered a loan application through the Small Business Administration, but ultimately decided on SMBX because it was simpler, more affordable, and more flexible. “I was looking for a way to raise money that was relatively affordable and flexible, and SMBX fit that bill,” Kashuk says. “The bonus was that my community could get involved in a real and tangible way.”

Capay Mills Joins SMBX Marketplace
Comstock’s Magazine, February 18, 2022

The Yolo County artisan flour business receives more than $115,000 in investment. “SMBX is a novel platform, offering debt financing rather than donations or equity,” Kaisel says. “I like that it shares the risks and benefits in what feels like a less speculative way than some of the other vehicles. Investors are able to make an immediate return on their investments, while we’ll have the strongest possible incentive to build a profitable business capable of paying those investors. A definite win-win.”

Gay-Owned Firm Joins D.C. Small Business Bond Program
Washington Blade, November 23, 2021

CFO Services Group, a gay-owned D.C. financial services consulting company, is one of six D.C. small businesses to participate in a program launched in September by Mayor Muriel Bowser that allows small businesses to raise money by offering bonds at a price of $10 each to local community investors on the SMBX marketplace.

Fintech Offers Small Business Bonds, Not Bank Loans to Fund Growth
PYMNTS.com, November 12, 2021

By offering bonds through the SMBX marketplace, small business owners not only obtain funding more quickly, easily and affordably, they also enjoy the added benefit of forging deeper connections with the communities that back them.

3 Debt Financing Options To Get Needed Capital For Your Business
Forbes, November 6, 2021

SMBX, a new San Francisco-based fintech financing marketplace, has developed a platform for small and medium-sized businesses to issue bonds to their customers, community, and institutional investors.

DC Rebuild Bond Program Launched for Washington Small Businesses
Telemundo, October 14, 2021

Small businesses in Washington, DC will be able to continue to grow thanks to a capital program that allows their own clients to invest in them. This is the "DC Rebuild Bond", recently launched by the Mayor of the District of Columbia, in conjunction with the company SMBX.

Local Residents Help Fuel Growth for These Small Businesses in New D.C. Funding Program
Washington Business Journal, October 4, 2021

In mere days, vegetarian taco restaurant Chaia raised $25,000-plus to help fuel its growth as part of a newly launched program aimed at supporting local businesses in the District. The company, which recently opened a new location in downtown Bethesda, is one of the first D.C. businesses to tap into the city’s new D.C. Rebuild Bond Program, in which local residents and everyday customers contribute to a small business' fundraising campaign.

SMBX Raises $11.5 Million to Democratize Small Business Lending
ImpactAlpha, October 21, 2021

San Francisco-based SMBX raised $11.5 million to democratize financing for small businesses. Launched in 2016, SMBX lets retail investors invest as little as $10 in small business bonds and receive monthly payments. The company’s goal is to help everyday investors create passive income and grow their wealth, while helping small businesses gain access to financing.

SMBX Revolutionizes Small Business Financing and Retail Investing with Innovative Small Business Bond Marketplace, Raises $11.5 Million to Fund its Growth
Bloomberg, October 20, 2021

SMBX, the financial marketplace helping small businesses raise capital from retail investors in their communities, today announced the close of an $11.5 million seed funding round.

Small Business Bonds: A New Way for D.C. Residents to Invest Locally
Technical.ly DC, September 16, 2021

D.C. government and SMBX are teaming up to allow local residents to do more than shop local and put a little extra in the tip jar.

There’s a New Way to Support Your Favorite Businesses–by Investing in Them
Washington Business Journal, September 9, 2021

Small business owners in the District may have access to a new pot of capital to fuel their expansion plans – and it's coming, in part, from their own neighbors. The D.C. government is partnering with SMBX Inc. to launch the D.C. Rebuild Bond Program, which will enable local businesses to raise funds from individuals who live in the same communities they serve.

SMBX – Small Business Bonds Marketplace Review
Entrepreneur, April 7, 2021

SMBX is an online marketplace that allows individual investors to buy small business financial securities. It can be difficult for some small businesses to get a business loan. With SMBX, a small business owner is taking a different route. In this case, they are raising capital from the public.

Startups To Watch
Crunchbase News, August 14, 2020

SMBX, which connects small businesses to investors through its marketplace, raised $2.5 million in seed funding. “Our ultimate goal here is to build the world’s first small business capital marketplace,” said co-founder and CEO Ben Lozano.

Small Business Bonds: SMBX raises $2.5 Million Seed Round
Crowdfund Insider, August 11, 2020

SMBX, an online investment platform issuing securities under Reg CF, has raised $2.5 million in seed funding in a round led by Better Ventures with participation from Impact America Fund (IAF), Unpopular Ventures and others

SMBX Announces Funding to Usher in a New Era of Finance
Associated Press, August 11, 2020

SMBX, a marketplace connecting successful small businesses with everyday investors through small business bonds available via its app and website, announced today that it has raised $2.5 million in Seed funding…. With SMBX, small businesses can issue bonds directly to their customers and community.

Watch our new video--The Future of Finance is SMBX

SMBX — Mon, 13 Feb 2023 19:30:30 GMT

SMBX Small Business Testimonial--Reesa Kashuk of Poppy Bagels

SMBX — Mon, 13 Feb 2023 16:48:58 GMT

SMBX--Small Business Bonds Marketplace Review

SMBX — Mon, 13 Feb 2023 15:26:25 GMT

Read Entrepreneur's review of the SMBX marketplace. "Real innovation often takes place under the radar. The SMBX is a straightforward way for small and medium-sized businesses to quickly raise capital."

One of the many questions raised during the Covid-19 pandemic is how all of us can support the small businesses in our communities. These businesses are the engine of job growth and they have been the most affected by local, state, and federal mitigation efforts.

That's not exactly why the SMBX was created, but it's a timely use case that showcases the power that community can have in helping support small businesses. SMBX is a platform where crowdfunding meets fintech. It's an interesting concept that has the potential to be a game-changer for the way small businesses approach raising capital.

An Equitable Alternative to an SBA Loan

SMBX is an online marketplace that allows individual investors (that is everyday people like you) to buy small business financial securities. It can be difficult for some small businesses to get a business loan. With SMBX, a small business owner is taking a different route. In this case, they are raising capital from the public. Like a bank loan, the investors provide the local business with the capital they need. The business then pays the investors back with interest. In essence, the investors become the bank.

Investors provide capital to the business of their choice by purchasing small business bonds in increments of $10 at a time. The small business bond is a fixed debt instrument issued at $10 par value that yields principal plus interest on a monthly basis.

The Bottom Line on the SMBX

Real innovation often takes place under the radar. The SMBX is a straightforward way for small and medium-sized businesses to quickly raise capital. The service is still in its infancy. As more businesses become aware of the platform it is likely to expand. As an investor, you can spread the word to your favorite small businesses to see if they can tap into this convenient source for raising capital.

Read more of the review on Entrepreneur here.

Boichik Bagels Raises $1 million to Build Bagel Manufacturing Plant

SMBX — Fri, 03 Feb 2023 16:42:38 GMT

Emily Winston of Boichik Bagels was interviewed on Bay Area KGO ABC-7 to update the community on the construction of her new bagel manufacturing plant. Winston raised $1 million on the SMBX marketplace to finance the bagel plant and a new retail location in Palo Alto.

Boickik Bagels successfully recreated one of the most iconic bagels of New York City in the Bay Area. The New York Times wrote a story about Boichik Bagels with the headline "The Best Bagels Are in California (Sorry, New York)"!

How do I sign up to be an investor?

SMBX — Fri, 03 Feb 2023 16:26:23 GMT

So, you're ready to start investing in small businesses on the SMBX marketplace?

Let's get you signed up!

To get started, you'll need to create an SMBX account which will include your email address, a username, and password.

We'll also need a bit of personal information from you, that includes a government-issued photo ID, social security number, address, phone number, and employment status.

We get that this seems like a lot, but it's required by our banking partners and regulators to prevent fraudulent investments. This protects both you and the businesses on our marketplace. The last thing we'll collect is your income information to determine how much you can invest.

Once you connect your bank account or credit card to your profile, you'll be ready to check out the SMBX marketplace. You can purchase the Bonds for as little as $10 and start building your investment portfolio. Then each month, you be repaid principal and interest to your SMBX account.