How El Tamarindo Turned Customers into Loyal Investors.

El Tamarindo raised over $100,000 to rebuild an outdoor patio and expand their kitchen. Plus, they paid $0 in origination fees, as part of the D.C. Rebuild Bond Program on SMBX.

El Tamarindo's Raise at a Glance


$$101,940 raised

termBond Terms: 6.5% interest for 5 years


fee$0 in origination fees

investorsNumber of unique investors: 141

Background

El Tamarindo is a family and immigrant-owned restaurant serving Washington, D.C. for over 40 years. Owned by Jose Reyes and operated by his daughter Ana, El Tamarindo is beloved for its delicious Salvadoran and Mexican dishes at affordable prices. But when the pandemic struck, they needed money quickly to build their outdoor seating to adhere to new social distancing guidelines and expand their kitchen.

In partnership with (6)-2
Challenges
 
1. Keeping the Restaurant Family-Owned
Many small businesses are forced to give up equity to investors when they raise capital. As a family-owned business for 40 years, Jose and Ana did not want to give up any part of their ownership. That’s why they chose a debt-based loan through SMBX, so they could raise the capital they needed and pay it back over time, without sacrificing any equity.
 
2. Avoiding High Fees and Interest Rates
Loans from traditional lenders like banks usually come with pricey origination fees (or upfront fees) and interest rates (the percentage of principal the borrower must pay back). This can hinder a business’s growth long-term and make it difficult to find an affordable loan. But thanks to the D.C. Rebuild Bond Program with SMBX, El Tamarindo raised their capital with $0 in origination fees and only 6.5% interest over 5 years. This was made possible by the generous support of the City of Washington, D.C. and the Mayor’s Office.
 
3. Turning Supporters into Loyal Investors
El Tamarindo has a sizable group of local customers and supporters, presenting them with an opportunity: Converting customers into investors. Through SMBX’s platform, El Tamarindo was able to collect investments as small as $10 from community members. And experience shows that customers who are given the opportunity to invest in and earn money from their favorite small businesses are much more likely to be repeat patrons for years to come

“Our partnership [with SMBX] allowed us to see how important neighborhood staples are to communities. Through these investments, we saw how connected our customers were to El Tamarindo, but also that the larger community felt the same way.”

- Ana Reyes, El Tamarindo

Maketto 3 (1)

 

Solution
 
El Tamarindo chose to proceed with SMBX, successfully raising over $100,000 from the community to expand their outdoor space and kitchen. Now they will repay investors at an interest rate of just 6.5% over 5 years. And because they are based in Washington D.C., they paid $0 in origination fees through the D.C. Rebuild Bond Program.

Over 140 different everyday investors supported El Tamarindo’s raise, with an average contribution of about $723. Plus, El Tamarindo was celebrated by the Mayor’s Office in their annual National Pupusa Day, where multiple government figures came to show their support for El Tamarindo’s fundraising efforts. “Our partnership [with SMBX] allowed us to see how important neighborhood staples are to communities,” said Ana Reyes, Director of Operations at El Tamarindo. “Through these investments, we saw how connected our customers were to El Tamarindo, but also that the larger community felt the same way.”

Now months later, El Tamarindo has completed their renovations with the capital raised on SMBX. Investors and new customers alike can enjoy the ambiance of their redone outdoor patio, and the restaurant’s business has never been better. “Working with SMBX was a great experience… It was especially encouraging as our restaurant is now going on 40 years as a part of the Adams Morgan neighborhood. And because of SMBX, we can invest in 40 more years of El Tamarindo,” said Ana Reyes.

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