Mercer County small businesses have a final opportunity to apply to the Mercer County Small Businesses Investment Program before the program ends on Monday, September 30.
Mercer County allocated funding received through the American Rescue Plan Act (ARPA) to SMBX, who would manage the Small Business Investment Program and drive retail investment to Mercer County small businesses on the SMBX marketplace. These funds have kept the program free for small businesses through the end of September.
An informational webinar hosted by the New Jersey Small Business Development Center takes place Wednesday, August 21, at 10 a.m. Officials will share more about the program and answer questions from interested businesses.
The Small Business Bond Marketplace (SMBX) provides financing for businesses that may not be able to receive funding through traditional banks. The company connects small businesses with investors nationwide. The investment is packaged into a loan, and the investors are repaid principal and interest over the term of the bond. This platform can be utilized by small businesses, including start-ups, that lack the experience and credit to pursue traditional financing.
How it works. 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.
Eligibility requirements. Businesses must meet several qualifications to be eligible for the program. These include:
• 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
• Six month of net positive income
• Any owner with a 20 percent or greater stake must pass a background check
Businesses will also need to provide financial statements/tax returns; operating or articles of incorporation; a current business license; and lease agreement and insurance information.
A number of Mercer County small business owners have raised funds through the program. Desmond Hayes of Geogreens raised $75,000 for his eco-friendly small business in Hamilton. Brittani White of Eunoia Barbershop and Salon raised $25,000 for her new hair salon in Lawrenceville. Doug D’Orio of Anesu Restorative Care raised more than $19,000 to purchase new treatment equipment for patients suffering from chronic pain.
Small business owners interested in taking advantage of this unique program can learn more at on.thesmbx.com/mercercounty and sign up for the August 21 webinar at on.thesmbx.com/mercer-sbdc-aug21-webinar.
