Frequently Asked Questions

Investing

• Who owns this website?

  This website (www.mainstreetbond.com) is owned and operated by Main Street Bond, LLC, which is neither a registered broker-dealer, investment advisor nor funding portal. Two affiliated entities host offerings on this website: Main Street Bond, LLC uses this website to host Regulation D, 506(c) offerings and Community Bond, LLC uses this website to host Regulation Crowdfunding Reg CF offerings.

• What is Main Street Bond LLC?

  Main Street Bond LLC hosts all 506(c) offerings found on this website. Is not registered with the SEC or FINRA, and its involvement in the offerings on this website is limited to maintaining the platform and providing certain ancillary services to Regulation D issuers as permitted by 15 U.S.C. 77d(c). Main Street Bond LLC and Community Bond, LLC share the same owners but operate as separate businesses.

• What is Community Bond, LLC?

  Community Bond, LLC hosts all Reg CF offerings found on this website. It is a funding portal registered here with the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Community Bond, LLC and Main Street Bond LLC share the same owners but operate as separate businesses.

• Who can invest?

  Different types of offerings allow for different investors. Some types of offerings require that you be an accredited investor, while others allow everyone the opportunity to invest. Some offerings may even require that you live within a certain area to invest. Knowing what kind of investor you are will help you understand in which offerings you may invest.

• Can I invest if I’m not a U.S. citizen?

  We generally accept all investments, though you may be restricted from investing in certain circumstances depending on the jurisdiction in which you live and its local laws.

• Are there investing limits?

  The amount of funding you can invest depends on your status as an investor, the governing regulation and limits the issuer has chosen to place. When you begin your investment, you will be shown both the maximum and minimum investment limits. 

  Title III limits how much you can invest each year – not only in any one company, or through any Funding Portal, but in all companies through all Funding Portals. These limits apply only to your investments in Reg CF Offerings. Community Bond, LLC will calculate your annual investment limit based on your net worth and income. Investment limits are calculated on a rolling 12-month interval, and every investment in a Regulation Crowdfunding offering on any portal will count toward your annual limit. Since we only have records of your Reg CF investments on this Portal, you will need to inform us how much you have invested in Reg CF offerings on other portal’s in the last 12-months.

  For non-accredited investors, the maximum amount you can invest in all Title III offerings during a 12-month period is: If your annual income or net worth is less than $124,000, you may invest the greater of: $2,500; or 5% of the greater of your annual income or net worth. If your annual income and net worth are both at least $124,000, you can invest the lesser of: $124,000; or 10% of the greater of your annual income or net worth. You and your spouse may choose to combine your incomes and assets to invest, in which case you will both be treated as a single investor when determining how much you can invest. Note that your net worth is calculated in a special way by SEC Rule 501(a)(5)(i)), see “How do I calculate my net worth” below for more information.

  There are no investment limits for accredited investors. There are several ways to qualify as an accredited investor, but the most common types are (1) a natural person whose individual net worth [as calculated under SEC Rule 501(a)(5)(i)], or joint net worth with that person’s spouse or spousal equivalent, exceeds $1,000,000, and (2) any natural person who had an individual income in excess of $200,000 in each of the two most recent years (or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years) and has a reasonable expectation of reaching the same income level in the current year. Once you are verified as an accredited investor, you are free to invest without limits.

  
  

• How do I calculate my net worth?

  How do I calculate my net worth?

  Under SEC Rule 501(a)(5)(i), "net worth" is calculated in a special way that excludes the investor's equity in his or her primary residence but includes certain debts secured by that residence. To calculate your net worth, add up all your assets excluding your primary residence, and subtract all liabilities excluding indebtedness that is secured by your primary residence, EXCEPT:

  ▪ Negative equity in your home reduces your net worth (“indebtedness in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability”); AND
  ▪ Any increase in indebtedness secured by your residence in the last 60 days reduces your net worth (“if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability”)

  Please see the text of SEC Rule 501 and the SEC’s website with detailed example calculations for more information.

  
  
  

• How do I start investing?

  First, create and verify an account on our portal. You can then browse listings and think about which offering to choose for your investment. We strongly suggest you consider consulting a lawyer or a professional investment advisor prior to investing to understand and assess any and all risks that come with a particular offering. You can then choose to invest in your selected offer(s) and pledge a dollar amount to the offer(s). By choosing to invest in an offer, you acknowledge the risks that come with investing and particularly using an Investment Portal and you understand the possibility of and you can afford losing your entire investment should the issuing company file for bankruptcy.

• How do I contact the company for diligence or to determine credit ratings?

  To learn more about a company or project, you can review the offering materials on the campaign page and visit their website. All questions regarding the offering should be posted in the Investor Q&A section of the offering page so that all investors can see the response from the issuer. A third-party credit rating is not required for issuers our portal. However, you are strongly advised to conduct in-depth due diligence prior to making an investment commitment and consult with a professional advisor to fully understand and assess all the risks associated with making any particular investments.

• Will I pay a fee for investing?

  Most of our offerings are completely free for an investor, as Main Street Bond makes its money by charging fees to issuers, the company selling shares. That being said, issuers can opt to offset their costs by having investors pay a 2.85% fee of the total amount invested. This fee will be charged to investors on top of the price of shares total investment but will not exceed $37.25. You might be charged a convenience fee for using a credit card, which will be a percentage of the total amount invested plus any transaction fee. You will have a chance to review the exact amount of any fees before completing your investment commitment.

• How do I verify my accredited status?

  During the investment process, you may be required to affirm that you are an accredited investor. In some offerings you may be required to prove you are accredited by submitting certain documents to the issuer or a third party. Review instructions carefully while you go through the investment process.

• How are contracts signed?

  During the investment process, you will receive specific instructions about how you are to sign any documents. Each offering may use its own method of signing, so review instructions carefully during the investment process.

• How do I pay?

  During the investment process, you will receive specific instructions for that offering’s method of payment. The method of payment is specific to each project, so carefully review each step of the investment process.

• Will I receive project updates after I invest?

  You may receive updates from the project issuer on the status and progress of the project. You will be notified directly of these updates, and they may be viewed on the project itself under the update section.

• When will the offering close?

  In Regulation CF Offerings, an offering closes when the end date of the funding round has been closed. The issuer may also choose to inform its investors it will close the offering early for various reasons (e.g., it has already met its maximum funding amount), in which case it will pick an early closing date which is (a) at least 21 days after the offering was opened and (b) at least five business days in the future. Community Bond, LLC will the email all investors who have made commitments informing them of the new anticipated early closing date, that investors may cancel their investment for any reason until 48 hours prior to the early closing date, and whether the issuer will (or will not) continue to accept investment commitments during the 48 hour period prior to the new offering deadline. Note that if, due to subscriber cancellations, the offering no longer meets or exceeds its minimum funding amount at the time of the early closing date, then the offering will not close on the early closing date, and will instead continue until the end date of the funding round.

• Can the issuer or the portal cancel my investment?

  Yes, the issuer or investment portal may cancel any investment at any time, for any reason, prior to the close of the offering. Once the offering has closed, investments cannot be canceled.

• Who can invest?

  Different types of offerings allow for different investors. Some types of offerings require that you be an accredited investor, while others allow everyone the opportunity to invest. Some offerings may even require that you live within a certain area to invest. Knowing what kind of investor you are will help you understand in which offerings you may invest. If you are over 18, you can invest with us! (If you are younger, then you will need a parent to set up a trust, or something equivalent, so that they can invest in your name.) Our Tittle III Reg CF offerings allow accredited AND unaccredited investors to participate. The https://www.sec.gov/oiea/investor-alerts-bulletins/ib_crowdfunding-.html SEC Investor Bulletin link will give you some additional information about how much money you can or should invest using platforms like ours. Because of the risks involved, there are some limitations in place contingent on your annual income and net worth.

• What happens if an offering doesn't reach its funding goal?

  If an offering hasn't reached its funding goal by the end of a funding round, the project will close and your committed funds will be refunded. You should expect to receive a refund within 10 business days.

• Can I modify my investment?

  No, you cannot modify an investment after you've completed your commitment to invest. If you wish to invest a different amount or make other such modifications, you may cancel your previous investment and make a new investment.

• Can I cancel my investment?

  In Regulation CF offerings you cancel prior to 48 hours before the close of the funding round, which will either be the deadline disclosed in the issuer’s offering materials or an early closing date which you were notified of by email. If you've already submitted payment prior to canceling, you should expect a refund within 10 business days. In other kinds of offerings you may or may not be able to cancel, depending on the offering terms. Each offering page will clearly disclose the anticipated deadline after which you may not cancel your investment, but that deadline may change if the issuer announces an early closing date. Early closing dates must be announced at least five business days in advance, but investors should note that if you receive an email concerning a changing closing date, you may have as little as three days to cancel your investment. Once the 48 hours before the close of the funding round has passed, your investment cannot be canceled.

Promote An Investment

• Why raise funds via Main Street Bond

  Main Street Bond offers a fast, agile platform that empowers your business investment opportunity and company to efficiently and cost effectively seek new capital investments.

• How do I sign up to raise capital?

  Company founding members are required to create a personal account on our website. Once you are signed up and logged in, you can apply to raise from our network of investors. If your company is a fit, a member of our team will reach out to initiate our due diligence process.
  

• How do Main Street Bond, LLC and Community Bond, LLC make money?

  Issuers pay a flat, up front fee to Main Street Bond, LLC or Community Bond, LLC to host their offerings on this portal. Community Bond, LLC also gains revenue from the amount of money issuers raise in Reg CF Offerings. Issuers may also pay additional fees for specified services provided, including reimbursement of any expenses we incur on their behalf. Our compensation for each offering must be fully disclosed in the offering materials. If an issuer pays Community Bond, LLC in whole or in part with its own issuing securities, these securities will always be the same class offered to investors in the Reg CF Offering.

• How do I receive payment?

  During the creation of your project, you will be required to provide information to the portal for escrow. Carefully review all instructions to ensure that you provide sufficient information. In order to protect investors, companies are required to reach a minimum funding target to have a successful fundraise. Therefore, investments are not finalized until the company raises enough money to meet its funding target and completes all other closing conditions (together, the “closing conditions”). When investments are initiated through the platform, the subscription proceeds are held securely in an independent escrow account. Once all the closing conditions and minimum raise objectives have been met, the money is released to the company and investors will receive the applicable securities. If all the closing conditions are not met, subscription amounts are returned to investors by the escrow agent.

• What happens once I submit my offering?

  Once your offering has been created, we do a thorough check to see if your offering meets all of our requirements, then we validate you and your information. We work closely with you until your investment meets our criteria. When it has met the criteria for an offering on our site, we’ll approve the project and it will automatically go live on the start date you’ve selected.
  

• What happens if my round is oversubscribed?

  In the event that investor commitments meet or exceed the allocation in the round, other investors will still be able to commit capital to your round. However, you have discretion whether to allow oversubscriptions.

• May I cancel an investment on my offering?

  Yes, as long as the investment are still in escrow, or haven’t yet been received, you may cancel any investment. Once the funding round has closed, investments cannot be canceled.

• Can I extend an offering?

  Yes, as long as your offering has not already closed. If you wish to extend an offering, please contact our support team.
  

• Can Community Bond, LLC cancel an offering?

  Regulation Crowdfunding Rule 301(c)(2) requires an intermediary such as an Investment Portal to cancel an offer if it has a reasonable basis to believe that the issuer or the offering presents a potential for fraud or otherwise raises concerns about investor protection.

  In general, we reserve the right to cancel an offering at any time, for any reason, regardless of the status of the offering.

  
  

• What happens if an offering doesn't reach its funding goal?

  If an offering hasn’t reached its funding goal by the end of a funding round, the offering will close, and committed funds will be refunded. If you have directly received any funds, you should issue refunds within 10 business days.

• When will the offering close?

  An offering closes when either the maximum amount of funding has been reached, or the end date of the funding round has been closed.

• What are the communication channels?

  After an issuer has prepared and filed Form C with the SEC, the Form C document and other issuer offering documents will be publicly available on the deal page. The Portal also provides publicly viewable communications channels, where investors can ask questions to offering companies executives with each other as well as investor relations representatives of the issuers listed on our Portal. While we will generally not participate in these channels, we reserve the right to establish guidelines and moderate the channels to remove potentially abusive, hateful, fraudulent, or otherwise inappropriate content.

• Will my company’s information remain confidential?

  Information on your company overview pages is available to the public. By design, we encourage social and public consumption of your company’s public content. However, as former investors and entrepreneurs ourselves, we understand the importance of securing sensitive information, so we provide companies with a secure, permission-based, access-controlled system to securely share sensitive content with potential investors for companies raising capital either under 506(b) or 506(c) of Regulation D.

• What are Main Street Bond, LLC’s and Community Bond, LLC’s relationship with offerors?

  We provide a platform for issuers to find and communicate with potential investors. Issuers may or may not have an ongoing relationship with us after an offering is complete. Issuers may or may not continue using the Portal to raise money or use services provided by and pay compensation to our affiliates.

• Does my company have to be incorporated in a specific state or have a particular structure?

  Issuers can be organized in any state and be set up with a variety of tax and corporate structures. However, for Regulation CF offerings, we only work with companies (1) organized in the U.S.A., (2) who are not required to file public disclosures under the Exchange Act and are current on any other required regulatory filings, and (3) who are not and do not plan to be structured in a way such that they would meet the definition of an “Investment Company” under Section 3(a) of the Investment Company Act, even if they would then be excluded from that definitions by the exceptions in Section 3(b) or 3(c).

• How do my investors receive signature documents?

  During the creation of your project, you will receive instructions to upload the signing instructions. Different types of offerings have different types of signature requirements, so it is important that you carefully review all instructions during the project creation process. If you are not given an opportunity to provide signature instructions during the project creation process, you will be contacted by our customer support to ensure that the signature documents are correctly associated with your offering.