Risk disclosures
Backing a local business is meaningful — and genuinely risky. Read this before you commit anything.
InvestLocal is a pre-license preview operated for demonstration purposes. Nothing on this platform is an offer or solicitation to buy or sell securities. Commitments are non-binding expressions of interest; payments, identity verification, escrow, and repayment distributions are simulated and no funds move.
You can lose your entire investment
Small businesses fail at high rates. If the business closes or its revenue falls, repayments stop and you may never receive your projected return — or recover your principal. Only commit money you can afford to lose entirely.
Returns depend on revenue, not promises
A Revenue-Share Note pays from a fixed percentage of the business's gross monthly revenue. There is no fixed schedule: low-revenue months mean small distributions, and zero-revenue months mean none. The estimated repayment timeline is a projection, not a commitment.
Revenue figures are self-reported in this preview
During this simulation phase the business itself reports its monthly revenue, and figures are not independently verified. Verified revenue feeds (point-of-sale or bank-data integration) are planned before any real repayments occur.
No equity, no voting rights, no upside beyond the multiple
A note is not stock. You receive no ownership, no vote, and no share of the business's growth beyond the fixed repayment multiple. If the business becomes wildly successful, your return is still capped at the multiple.
These notes are illiquid
There is no market to resell a Revenue-Share Note. Expect your money to be committed until the note is repaid in full — which may take years, or never complete.
Escrow protects the raise, not the repayment
Third-party escrow safeguards funds only until a campaign reaches its minimum target. Once released to the business, repayment depends entirely on the business's ongoing performance.
Placeholder compliance fields (KYC/AML status, accreditation and investment-limit checks under Regulation CF) exist in InvestLocal's data model but are intentionally inactive during this pre-license preview. They activate when InvestLocal operates as a registered funding portal.