SMBX

SMBX is a dual-sided online marketplace that connects small businesses with individual investors through an innovative financial instrument called the Small Business Bond. This platform allows small businesses to raise capital from their communities and existing customers by issuing bonds that yield monthly principal and interest payments.

SMBX's core offering is the Small Business Bond, an asset class created to provide an alternative funding source for small businesses. These bonds function like loans, where businesses borrow funds from investors instead of banks. Investors can purchase bonds starting from USD 10 and receive fixed monthly repayments over the bond term, typically ranging from two to seven years with interest rates between 7-11%.

Launched in 2016, SMBX was founded by Ben Lozano, Gabrielle Katsnelson, Bhavish Balhotra, and Jackie Chan to bridge the gap between small businesses and investors. The company aimed to democratize access to capital for small businesses while offering everyday investors the opportunity to support local enterprises and earn returns.

SMBX's model focuses on providing funding to established, profitable small businesses seeking capital for expansion or debt restructuring, minimizing investment risk. The platform rigorously vets businesses through underwriting processes, including analyzing operating history and financial statements, before listing their bond offerings.

In 2021, SMBX partnered with the Washington D.C. government to launch the D.C. Rebuild Bond Program, enabling local businesses to issue bonds to D.C. residents and investors. By 2024, over USD 1.3 million was raised through this program for 13 businesses across various sectors like food, retail, and services.

Key customers and partnerships

SMBX has facilitated bond offerings for numerous small businesses across the US, particularly in cities like Washington D.C., San Francisco, Oakland, and Portland. Notable companies that have raised capital through SMBX include:

- Humphry Slocombe (San Francisco ice cream shop)

- Palm City Wines (San Francisco wine shop)

- Boichik Bagels (San Francisco bagel manufacturer)

- Community Co-Pack (Portland contract manufacturer)

- CFO Services Group (Washington D.C. financial consulting firm)

- Chaia (Washington D.C. vegetarian taco restaurant)

- Aurora Market (Washington D.C. organic market)

- Style Bar DC (Washington D.C. salon)

- Arepa Zone (Washington D.C. Venezuelan restaurant chain)

In addition to its partnerships with small businesses, SMBX has collaborated with government agencies and financial institutions to promote community investment. Key partnerships include the D.C. Rebuild Bond Program with the D.C. Mayor's Office and a USD 500,000 grant from Wells Fargo to expand the program's reach.