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Thursday, July 17, 2014

P2P Lending and Crowdfunding – Explore the New Frontier for Small Business Lending | SBA.gov

P2P Lending and Crowdfunding – Explore the New Frontier for Small Business Lending | SBA.gov: "One example of a hugely successful non-profit crowdfunding venture is Kiva.org. Kiva works with microfinance institutions on five continents to provide loans to people without access to traditional banking systems, including U.S. businesses.

While Kiva requires that you repay the loan over time, most crowdfunding opportunities aren’t loans and, as such, don’t involve traditional forms of repayment and interest. Instead, borrowers offer a form of payback or reward to encourage people to make the investment. 

One example is the funding model established by Kickstarter. If your business is of the creative kind – art, technology, film, photography, music – Kickstarter is a way to source funds from others.  In exchange for investment (often as little as $25), borrowers “reward” investors with compelling returns. For example, a share in your business or even access to limited edition works, free products, invitations to parties and events, anything you believe is an attractive enticement.

Other crowdfunding sites include Wefunder, crowdfunder, and RockthePost."



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