5in5 Reviews: Smallknot – keeping your community tightly knit

Smallknot has upped the ante for social lending, making it possible for you to directly support the small businesses in your neighborhood.

Instead of relying on big banks for loans, the small businesses that give our local neighborhoods their personality can use Smallknot to ask for help directly. It creates a personal bond between business owner and the consumers, and the consumers get to see their money being put to good use – a little bit “I’ll scratch your back if you scratch mine” combined with community outreach.

Smallknot connects small business with you, the consumer who loves their local community and wants to see it grow.  You get that warm, fuzzy feeling from helping someone out, and you also receive coupons, perks and rewards from the companies you fund.  If, even despite your best efforts, the small business does not make their goal in their time frame, your donation is given back to you.  Smallknot has created a safety net for all investors by doing research on each company before they list them. For now, Smallknot is focused on their own neighborhoods in New York but they hope to expand to other cities soon.

Imagine if SmallKnot was around in 1998. Maybe the local community could have rallied around The Shop Around the Corner when Fox Books took over the neighborhood with their mega store and over priced books.  But then again, Meg Ryan and Tom Hanks’ characters fell in love regardless so it all worked out in the end!