SMBX runs an online marketplace where qualified small businesses issue Small Business Bonds that retail investors can purchase—often for as little as $10 per bond—to earn up to 10% annual interest. The platform was developed after the SEC implemented Title III of the JOBS Act to enable non‑accredited investor participation. Bonds pay monthly principal and interest, with issuer interest rates generally ranging from 5–10%; the marketplace highlights example issuances across multiple U.S. cities. SMBX emphasizes community financing and has partnered with municipal programs such as the D.C. Rebuild Bond program to catalyze local investment. The company says the model reduces banks’ role in debt service while creating closer financial ties between businesses and their customers. SMBX is led by founders Ben Lozano (CEO), Bhavish Balhotra (CTO), and Jackie Chan (COO). SMBX operates a marketplace that allows small businesses to issue bonds directly to customers and community members through its app and website. Investors who buy bonds listed on SMBX can earn returns of roughly 4–9%. The platform’s core product is the small-business bond issuance and secondary buying experience designed to provide capital to local businesses. The company plans to use the newly raised funds to expand operations and broaden its business reach. SMBX was founded to facilitate community-based financing for small businesses and to offer an alternative investment vehicle for retail investors. The company’s current financial position beyond this raise was not disclosed in the article.

Total raised

$14M

Funding rounds

2

Latest round

Seed

Latest activity

Oct 2021