Wefunder Launches Crowdfunded Small Business Loan and Startup Accelerator to Help Founders Tackle the Coronavirus Crisis
Small businesses can crowdfund loans of $20,000 to $1 million from supporters; Startups with solutions to the crisis can receive $50,000 investments
SAN FRANCISCO, March 24, 2020 /PRNewswire/ -- Wefunder, the nation's leading investment crowdfunding platform, today announced a new loan product to help small businesses struggling with the economic impact of coronavirus. The Coronavirus Crisis Loan, available now to any small business, enables businesses to crowdfund a loan from customers, family, friends, and the Wefunder community of 400,000 investors to provide critical cash flow during this economic crisis at a reduced interest rate. Last week, Wefunder also announced the Fight the Virus Challenge, a three-month accelerator to invest in startups tackling the crisis in sectors including biotechnology, senior care and remote education.
"Small businesses critically need access to cash in order to survive, and simultaneously, customers and community members desperately want to help," said Jonny Price, Director of Fundraising at Wefunder. "Small businesses should be exploring multiple options for raising capital immediately, and one of those options can be their friends, family, and customers who love them and want to support them."
The economic impact of coronavirus is expected to be devastating for many small businesses, which make up 99.7% of all U.S. firms with paid employees, and employ nearly 50% of America's workforce. A 2016 report by JP Morgan Chase notes that the median small business holds 27 cash buffer days in reserve, and a recent survey conducted by Goldman Sachs revealed 51% of small business owners say they can only continue to operate for 0-3 months. Wefunder's Coronavirus Crisis Loan is designed to help small businesses leverage the support they already have from their community and customers, into a loan with terms that are very friendly for small business owners.
The Coronavirus Crisis Loan terms include:
- Loans from $20,000 to $1 million
- Repayments deferred until 2021
- Repayments based on revenue
- Lenders can opt to lend for as low as 3% simple (non-compounding) interest
Any small business in the U.S. is eligible to apply for a Coronavirus Crisis Loan. Loan applications can be submitted here: https://wefunder.com/loans
"This is our generation's moment to rise to the occasion," said Nick Tommarello, Wefunder's CEO. "We're 100% focused on doing our part. We can't match the heroism of our doctors and nurses, but we can help save more small businesses, and fund more startups tackling this crisis head-on."
Last week, Wefunder also announced the Fight the Virus Challenge, an online accelerator that invests $50,000 to $1 million in startups tackling the coronavirus crisis. Over three months, founders receive support from a network of world-class mentors, while inside an intense online community that helps them to move faster. Besides biotechnology, Wefunder is looking for startups working on senior care, combating social isolation, telemedicine, remote education, and safer childcare. The deadline for applications is April 3rd.
About Wefunder
Wefunder is the nation's leading investment crowdfunding platform, with a mission to keep the American dream alive. Founded in 2011, Wefunder has helped hundreds of companies raise almost $130 million. Wefunder companies have gone on to raise over $2 billion in venture capital. Wefunder is a Public Benefit Corporation and B Corp, with a goal to help 20,000 founders get off the ground by 2029.
Contact: Fiona Ramsey, [email protected] (415) 378-0319
SOURCE Wefunder
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