Looking for a Zero Interest Small Business Loan? Community Sourced Capital May be Your Answer
Ever heard of a business-oriented crowdfunding platform called Community Sourced Capital (CSC)? Many small business owners and entrepreneurs haven’t. But, according to my research, it just may be another answer to your small business funding problems.
What is Community Sourced Capital?
Through Community Sourced Capital, you can become a member of a collaborative network. This network was created with the sole purpose of helping small businesses and entrepreneurs thrive with the assistance of local communities. You’ll be connected to “mission-aligned funders”, other small business owners and community members coming together to build “meaningful relationships around money.”
What makes CSC so different from so many other crowdfunding platforms?
- It focuses on connecting small businesses in need of funding with local community members interested in investing in local ventures
- Entrepreneurs and small business owners can obtain loans from $5,000 to $50,000 with zero interest
- Funders buy into investments by purchasing squares for $50 each, up to $1,000 worth per campaign
- Loans are due and payable, interest-free, within three years
How to Make the Community Sourced Capital Small Business Funding Cut
Each CSC campaign application is reviewed for “financial integrity and community connection.” The CSC team actually spends time helping each business build its campaign.
Once your campaign is approved, it will run for free for up to four weeks. If you don’t reach your campaign’s minimum funding goal, you don’t get any of the funds. So, the goal needs to be to create a realistic campaign, worthy of the support of your friends, family, affiliates, co-workers, associates, community members, etc…
Chief Executive Rachel Maxwell of CSC gave his take on how the platform works:
“We’re looking for whether the capital is useful, responsible and connected.
It’s useful if it’s for a purpose that will help strengthen the business. It’s responsible if the loan is an amount the business will be able to pay back, and it’s connected if the business has a community that will support it.”
How Much Does Community Sourced Capital Small Business Funding Cost?
There’s a one-time fee of $250 to launch your small business venture campaign. Plus, there’s a $50 membership fee due each month that your loan is outstanding. Once it’s paid in full, you no longer have to pay a monthly fee to remain a member of Community Sourced Capital.
The nonprofit community development financial institution Craft3 matches every single dollar raised on the CSC crowdfunding platform. With its help, CSC has helped to facilitate 58 different small business loans totaling more than $1 million.
According to Craft3 Chief Executive John Berdes:
“We are in a very close relationship. We are not only being mentors and supporters, but we are matching their squares throughout the region.
We really think they are on to something.”
The typical company using Community Sourced Capital for small business funding are food-related companies and neighborhood ventures such as local gyms, salons, day care centers, etc… These local businesses are generally “built around strong communities”, says Maxwell.
Marketing Your Crowdfunding Project
Have a crowdfunding project you need to promote? Well, at the end of the day, potential investors want to be sure that your project belongs to a brand worth funding. Be sure they know what your brand is all about, and who the mastermind is behind that brand. A responsive website will get the job done for you.
The EntreMarketing Group creates responsive websites and blogs for entrepreneurs and small businesses. Get a customized crowdfunding marketing package created just for your brand. Call The EntreMarketing Group at 888-507-2191 or click here to contact us about helping you promote your crowdfunding project today.