Funds that are uninvested (in your "Cash on Hand") and up to $250,000 are insured under the FDIC.

Invested funds (Money at Work) are not insured by the FDIC because they don't qualify for the insurance.

Groundfloor pre-funds loans to real estate developers, then works with the U.S. Securities & Exchange Commission (SEC) to convert these loans into securities that are then sold to investors.

​

Additional information:

When you invest with Groundfloor, you're investing in a Limited Recourse Obligation (LRO), which is a debt security that Groundfloor submits to the SEC for qualification on our platform. The LRO cannot be listed on our platform before the SEC qualifies it.

Groundfloor holds a first lien position on each loan, and each loan is backed by the underlying real estate asset(s). Each LRO has Financial Details as well as Project Specific Risk Factors on the Loan Detail page (click on the address of the LRO you are looking at), which will tell you if the LRO is backed by a single asset or multiple, whether or not the loan will be split into multiple LROs, or whether it is backed by a single Note.

Groundfloor Notes are promissory notes through which we offer investors a set rate and date-delimited repayment term, similar to a CD or a bond. We use funds invested in Notes to fund our lending capital since we pre-fund all loans before they are released to the public for funding. They are inherently less risky than our LROs, which is why the interest rate is lower than an average LRO.

Groundfloor Notes investments are secured by loans before they are released to the crowd for funding, and loans are therefore typically swapped out every 30 days once they are sold as LROs for investment.