Beginning August 3, accredited investors will have access to a new fixed-income offering designed for those seeking a defined return over a short investment horizon. The new Groundfloor Bond Note offers a 9.5% annualized return over a six-month term with a minimum investment of $10,000 and a maximum offering size of $10 million.
Unlike many private market investments that distribute income periodically, the Bond Note pays accrued interest and returns principal at maturity. It also includes a unique feature: if the Note is prepaid early because Groundfloor completes a qualifying bond issuance before maturity, investors receive their principal back early, all accrued interest through the repayment date, and an additional 0.5% bonus credit. This scenario has occurred previously, resulting in investors receiving their capital roughly two weeks earlier than expected while also earning the bonus.
The offering is available from August 3 through September 3, 2026, or until the $10 million cap is fully subscribed.
With a competitive 9.5% fixed annual rate, a six-month term, and Groundfloor’s 100% on-time payment record for every Note (including convertible notes and bond notes) issued since 2018, demand may exceed available capacity. Because bank transfers can take several business days to settle, interested investors are encouraged to begin funding early.
What Is the Groundfloor Bond Note?
The Groundfloor Bond Note is a limited-duration fixed-income investment offered exclusively to accredited investors.
Although it includes the word “bond,” investors are purchasing a Note issued by Groundfloor rather than buying a publicly traded corporate bond. The proceeds support Groundfloor’s lending operations and broader capital strategy while providing investors with a predetermined return over a defined investment period.
Bond Note at a Glance
| Feature | Details |
| Annualized Return | 9.5% |
| Term | 6 months |
| Interest Payments | Paid at maturity |
| Minimum Investment | $10,000 |
| Offering Size | $10 million |
| Investment Window | August 3 – September 3, 2026 |
| Early Call Bonus | Additional 0.5% credit if prepaid under qualifying conditions |
How the Bond Note Works
The Bond Note follows a straightforward structure.
After investing, capital remains invested for up to six months. Interest accrues throughout the term and is paid together with the original principal when the Note matures.
Investors receive one payment at the end of the investment period, simplifying cash management while locking in a fixed annualized return.
If Groundfloor elects to prepay the Note following a qualifying bond issuance, investors receive:
- Their full principal
- All accrued interest through the repayment date
- An additional 0.5% bonus credit
This feature is intended to compensate investors if the investment period ends earlier than originally anticipated.
Why Investors Use Short-Term Fixed-Income Investments
Many investors maintain a portion of their portfolio in fixed-income investments to generate predictable returns while limiting exposure to public market volatility.
Short-duration investments can be particularly attractive when investors want to:
- Generate income from idle cash
- Diversify beyond stocks
- Preserve flexibility for future opportunities
- Maintain a defined investment timeline
Because the Bond Note matures in six months, investors know when capital is expected to become available again, making it easier to plan future allocations.
Bond Note vs. Traditional Fixed-Income Options
Traditional fixed-income choices such as savings accounts, certificates of deposit, and investment-grade corporate bonds each serve different objectives.
High-yield savings accounts typically provide daily liquidity but variable interest rates. CDs offer fixed returns but often require early withdrawal penalties. Public bonds trade on secondary markets, meaning their prices fluctuate as interest rates change.
The Groundfloor Bond Note differs in several ways:
- Fixed 9.5% annualized return
- Defined six-month investment period
- No market price fluctuations during the term
- Potential additional 0.5% bonus if prepaid early
Like other private market investments, however, it is not FDIC insured and should be evaluated within the context of an investor’s overall portfolio and risk tolerance.
Where the Bond Note Fits Within a Diversified Portfolio
The Bond Note falls within Groundfloor’s Fixed Income category, alongside its other Note offerings. This category is designed for investors seeking predictable returns through defined investment terms rather than equity appreciation.
For accredited investors, the Bond Note can complement existing allocations to:
- Public equities
- Traditional fixed income
- Private credit
- Alternative investments
Its six-month duration may also appeal to investors who expect to redeploy capital into future private market opportunities within the coming year.
How the Bond Note Compares to Other Groundfloor Notes
Groundfloor offers several Note products with varying terms and payment schedules. The Bond Note is designed for investors who prefer a medium-term commitment with a single payment at maturity.
Other Groundfloor Notes include shorter-term and longer-term options with different interest payment schedules, allowing investors to build a laddered fixed-income allocation based on liquidity needs and income preferences.
Key Dates
- Offering Opens: August 3, 2026
- Offering Closes: September 3, 2026, or when fully subscribed
- Minimum Investment: $10,000
- Maximum Offering Size: $10 million
Because this is a limited-capacity offering, subscriptions may close before the scheduled end date if the cap is reached.
The Groundfloor Bond Note provides accredited investors with another option for generating fixed returns within a defined investment period.
Its combination of a 9.5% annualized return, six-month term, and potential 0.5% early repayment bonus offers a distinct approach for investors seeking predictable fixed-income exposure while maintaining flexibility to redeploy capital within a relatively short timeframe. For investors building a diversified private markets allocation, the Bond Note expands Groundfloor’s growing suite of fixed-income opportunities designed around clearly defined terms, transparent return structures, and shorter investment horizons.
This article is for educational purposes only and does not constitute investment, legal, tax, or financial advice, or an offer to sell securities. All investments involve risk, including the possible loss of principal. The Groundfloor Bond Note is not FDIC insured, is not a bank deposit, and is available only to accredited investors. Past performance, including Groundfloor’s historical payment record, does not guarantee future results. Please review the applicable offering documents before investing.
