PORT TOWNSEND — The owners of a craft brewery are raising money for expansion through a special type of crowdsourcing that requests small, zero-interest loans rather than gifts.
“We are a for-profit business, so we want people to have a return,” said Robert Horner, who owns and operates Propolis Brewing at 1510 Hastings Ave., along with his partner, Piper Corbett.
“It’s also about getting the community to recognize how we will be able to create jobs and bring more people into town.”
Propolis, which is now not open to the public, is working with Community Sourced Capital, administrator of a loan program to raise the money for renovation of a building that Propolis hopes to change into its first tasting room.
The company has its eye on a 2,500-square-foot building near the newly opened Port Townsend Visitors Center where it can install a brewing facility, a tasting room and a retail outlet.
The entire cost of the move will be about $80,000. The loan campaign is expected to raise between $20,000 and $50,000 for the project.
By Saturday afternoon, the campaign at http://tinyurl.com/PDN-Propolis already had surpassed its minimum goal of $20,000, four days ahead of Wednesday’s final day of the fundraising campaign.
By Sunday, 95 people had committed $20,650.
Under the plan, “squareholders” can kick in an amount between $50 and $2,000 to support the project.
“Squares are $50 pieces of a loan to a business in your community. Buy four Squares, lend $200,” the website says.
“Squares are in-between donating and investing. Although Squares do not return interest to lenders, they can still be repaid in full.”
Propolis will receive a loan for the raised amount and begin payments on a 36-month plan.
The payments will be transferred electronically to contributors’ bank accounts on a monthly basis.
An investment of $50 will trigger monthly payments of $1.40, Horner said, while $2,000 would yield $56.
No interest will be paid.
Investors get no more than what they kicked in while Propolis repays only the amount of the loan, along with a $50 monthly fee to administer the program.
Community Sourced Capital does not guarantee repayment.
However, “to date, 98 percent of Community Sourced Capital’s campaigns are in good standing and being repaid on time,” it says on the website.
Nate Micklos, a Seattle resident who has invested his own money outside of the community loan program (and who will receive interest) explained its appeal with regard to Propolis.
“People want to be part of something but they aren’t always willing or able to take the risk,” he said.
“You can have a good product or good people, but you won’t be a success if you don’t have both.
“Piper and Robert are both invested in what they are doing, and I don’t think either one of them is willing to not be successful.”
Since its founding three years ago, Propolis has operated out of a garage.
From that location, it has produced 3,000 cases a year of 24 different brews made with local herbs and plants.
Some of the tastes include fennel, birch sap and cedar — all originating from Jefferson County.
“You can get one batch of a certain beer this year, and it will taste one way. You can get the same beer next year, and it will taste totally different,” Horner said.
With a tasting room, “people will be able to compare our beers side by side, and we’ve never had that capability before,” Horner said.
“In order to have a retail space we need production, and in order to take full advantage of production we need a retail space.”
Horner and Corbett already have ordered equipment with the expectation of opening in the fall.
“Fall is a good time to get settled in and October is a great beer month,” Corbett said.
“We may open in a bare-bones situation and move things in gradually, but it is important that we develop a connection with the public.”
Once open, the facility will create three to five full time jobs, Horner said.
Teresa Verraes, Jefferson County Chamber of Commerce executive director, said that Corbett and Horner, both 35, are examples of the new entrepreneurs who will create economic opportunities in the region.
“This is another locally-made product that will put Jefferson County on the map,” she said.
“It’s been a real challenge for them to find the right location, but I think this tasting room will give them the sense of place that will help them grow into the future.”
For information about Propolis, go to www.propolisbrewing.com.
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Jefferson County Editor Charlie Bermant can be reached at 360-385-2335 or cbermant@peninsuladailynews.com.
