Pittsburgh’s largest foundation has invested $350,000 in Honeycomb Credit, a loan crowdfunding platform for small businesses.
The Richard King Mellon Foundation on Tuesday said the infusion to the young financial technology firm was through its social impact investment program that is part of the strategic plan announced in early 2021.
Honeycomb Credit, also based in Pittsburgh, said it will use the capital to build educational and outreach initiatives specifically targeted toward small businesses shut out of traditional financing. Since 2017, it has facilitated approximately $12 million through more than 180 loan campaigns to businesses in 23 states and Washington, D.C.
"The foundation is seeking to invest in socially-minded for-profit businesses aiming to achieve a public good that would advance our strategic plan,” Sam Reiman, director of the Richard King Mellon Foundation, said in a prepared statement. “Honeycomb's platform is designed to improve access to capital in communities where market rate lending tends to be difficult to obtain. We are excited to support their efforts to address this market failure."
