How the money works
SMBX is a marketplace connecting everyday investors like you with small businesses to invest in. With SBMX, you invest in small business bonds that is like a loan, but instead of borrowing funds from a bank, a business borrows from everyday investors just like you. Once a Small Business Bond offering successfully closes, investors are allocated Bonds that they've ordered. The business then begins making monthly payments starting one month after this. Each month, investors will get paid a portion of the principal (the amount they initially invested) plus interest, for the duration of the Bond. Investors receive full principal + interest if they hold their allocated Bonds for the duration until maturity and the business makes payments during this time without default.
Investing is free on SMBX with a linked bank account. If you choose to use a credit card rather than a bank account to invest, there is a 4% fee to process investments to cover costs passed on by credit card processors.
Investment risks
Investing in Reg CF securities includes financial risks, including loss of money invested.