allow deploy from local directory
Gemfile
gem 'capistrano-scm-local', '~> 0.1', :github => 'ekho/capistrano-scm-local'
OR
source 'https://rubygems.org'
gem 'capistrano-scm-local', '~> 0.1'
deploy.rb
set :scm, :local
set :local_strategy, :archive
set :repo_url, 'path/to/source'
:local_strategy can be :default or :archive. :default - directly uploads folder; :archive - makes tar.gz, uploads it and unpack.