RACINE – In just days, Market on Main reached its goal of crowdfunding $6,500 for a small business loan.
on Tuesday afternoon, the loan was about 76% of the funding. As of Wednesday morning, the loan was 100% funded by 140 different local, national and international lenders; it had just launched on Saturday.
According to the fundraising page, the loan will be used to purchase more cold stores for the 433 Main St. market, as well as a marquee for the storefront.
“It’s amazing,” said Tywon Davidson, co-owner of the market. “I feel blessed.”
A different kind of loan
The loan was made through Kiva, a non-profit organization which provides crowdfunding loans for small businesses and those in need. It usually works like a typical loan, except it relies on individual lenders to crowdfund the loan rather than the money coming from a bank.
Once the borrower repays the loan, the money actually goes back to the lenders and the lenders can choose to fund other causes, donate it, or keep the money.
Davidson said the market fell short of qualifications for: loans under the Paycheck Protection Program, which small businesses have used to stay afloat during the pandemic. For example, one of the qualifications is that the business opened before February 15, 2020; the market opened a few months later.