Wouldn’t it be great if you could get up to $50,000 to grow your business directly from members of the community? Fund Local allows you to do just that. Using an online lending platform co-sponsored by the Washington State Department of Commerce and Community Sourced Capital, your business can raise money via squareholders, members of your community who want to invest in a 0% loan for your business.
Here’s how it works…
Potential investors can log in through the Fund Local website, either directly or via an unique link you provide them to your particular campaign. Make your best pitch and if someone likes your plan for growth or ideas to take your company to the next level, they can kick in “squares” in your business in increments of $50. It’s up to you to promote your funding pitch. As your business continues to grow, you make monthly payments back to your squareholders until the loan is paid for in full.
- Fund Local is for campaigns ranging between $5,000 and $50,000.
- You need to have historical revenue traction and the loan has to be repaid within three years. These loans are not backed by the State of Washington, Community Sourced Capital or the Department of Commerce.
- You do all the promotion. Connect everyone via your campaign using social media, events, elevator pitches, signboards, whatever you want.
- Apply to run a campaign by filling out a simple application on the Fund Local site. It takes about 20 minutes.
- Approved businesses will run a 28-day campaign using the online platform and funding tools.
- Successful companies will get their check a few days after their campaign closes.
- You make monthly payments on the 0% interest loan. It must be repaid within three years.
- $250 to launch the campaign.
- $50 monthly membership fee for the term of the loan.
- Remember, the actual loan is $0% interest.
Got a question?
By accepting the terms of the program’s Squareholder Agreement, the lender acknowledges that any money shared may not be returned to your account, and that, if a borrowing business cannot repay a loan, you will consider your shared money as a non-tax-deductible donation without recourse as a creditor from the Washington State Department of Commerce. As such, the Department of Commerce warns lenders not to share more money than you can afford to lose.
In The News…
Chamber helps business cross funding gap
Proving that a zero-interest loan platform can work
New initiative to support small business based on community support via squares
Port Townsend & Jefferson County Leader
Fund Local campaign now launching
Department of Commerce
Program Launch Press Release