In late July 2019, local profitable businesses can issue bonds on a new platform, the SMBX (www.thesmbx.com), to raise money. People can buy these businesses’ bonds, support the businesses they love, and earn principal plus interest monthly.
Businesses get the capital they need to grow; people earn the profits from financing charges that would ordinarily go to the bank – a true wealth of the commons.
San Francisco, CA, July 11, 2019 –(PR.com)– The Small Business BondTM is a new asset class engineered by the SMBX, a San Francisco based startup spearheaded by Ben Lozano, PhD., a former finance professor and hedge fund financial engineer. On the SMBX, local profitable businesses can issue bonds instead of taking out a bank loan. People can invest in these businesses to earn a monthly return.
After a near 2-year process, the SMBX received its FINRA license in June 2019 which allows it to operate as a Regulation Crowdfunding portal. Unlike other portals focused on equity of startups, the SMBX’s mission is to transform small business debt by mobilizing communities to invest in the businesses they love while earning the profit from financing charges that would ordinarily go to the bank – a true wealth of the commons.
The Small Business Bond is a fixed income instrument issued at a $10 par value that yields principal plus interest monthly.
The first Small Business Bond offering will be live via the SMBX mobile app later this month; details can be found here. Beloved SF and Oakland based full-service culinary knife shop, Bernal Cutlery, will issue small business bonds to raise money for its expansion and as such, give people the opportunity to invest in their growth and make a return.
CEO Ben Lozano states, “It’s time people stopped talking about the demise of small business but instead had a means to participate in its revival. It’s time people stopped funding their banks but instead got to be one. The SMBX’s promise is to bridge this gap and to create a new model of finance.”