What if you don’t pay me back?

All investments carry some risk—especially when investing in a small business. This particular loan is not secured, meaning technically, I could take your money and disappear. But I won’t.

Here’s why:

• I’ve worked way too hard to walk away.

• I believe this industry is about to boom, and I want to be on the leading edge.

• I absolutely love what I do.

• Too many people know where I live. 😉

• I love my home, and I have no intention of moving.

• I’m obsessed with saunas and getting people to experience the thermal cycle—just ask anyone who knows me.​

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What will happen to the original Connect Wellness space?

From day one, I knew the original CW location wouldn’t operate in its current form forever—because it’s in a residential zone. Changing that to commercial? Nearly impossible.

But I planned ahead. Everything was built with long-term use and zoning compliance in mind.

Over the next few months, I’ll begin transitioning the spa into a mostly unstaffed, self-serve model. It will function as an overnight retreat and a members-only spa space. We’ll also be able to host small events and private bookings.

Some of the upcoming changes include:

• Switching the cabin sauna to a propane-heated stove

• Moving Ivan (our beloved sauna bus) to the back “bus stop” area and finishing out that space

• Installing a composting toilet and camp-style showers

• Fencing in the back parking lot

There are a ton of details in this plan, but honestly—#priorities. Just trust me, I’ve got it.

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What if you don’t raise enough money?

I deeply believe that there is always enough money.

Whatever amount is raised through this process will be exactly what I need—no more, no less.

One of my superpowers is the ability to pivot and adapt. No matter what, I’m committed to building this spa. So don’t worry—this is happening.

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The SMBX Interest rate seems really high? Why are you choosing this route? 

Borrowing money is always expensive but when you're a business, it seems like it's even more so. If you google average SBA interest rate right now, you'll come up with the range of 10.5%-15%. If you search up conventional business equipment interest rate, or any other way to borrow money as a business and not a consumer you will see that the SMBX is actually pretty comparable to all other options. Thus far I have used up all of my retirement savings, liquid assets and even borrowed against the equity in my house to fund the building so far. My only hinderance to growth is capital. I'm looking forward to seeing how much the smbx process can get me. 

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What happens if you don’t make the $500K goal?

Great question! 

If we don't meet the goal of $500K (which is higher than I need, but a good goal) I still receive the funds that were invested, I just have less to work with.  Let's say I only raise $125K, I still receive the $125K, my monthly payment is set and I just continue to pay back the loan over the 60 month term loan. 

 

I have loose plans A, B, C, D etc. for however much money comes in. I have thought through and built informal plans for different markers and this is likely the most realistic plan. 

A $50-$125K - Finish current spa and maximize revenue potential on that property. 

B $125-$200K - Plan A plus open a franchise location in Tigard/Tualatin area and possibly battle ground (B.G. owners have their own capital, I just need to get the infrastructure for booking)

C $200-$350K- Plan A plus Build 40-60 person capacity spa in Clark County- possibly do the other 2 locations but unsure of timing. 

D Anything above $350K. -Finish current spa, build 40-60 person capacity AND open 1-2 separate locations with owner/operators. 

 

My experience has taught me it takes about $150-$250K to build a spa for each location, depending on the capacity and infrastructure needs at each location. 

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Is the return guaranteed? And when does it start and stop accruing?

The loan works similar to a mortgage or a car loan. 

 

It is unsecured; so if I default on it (which is highly unlikely) you'd be out your investment money. 

 

The loan is 60 months and interest starts accruing as soon as I receive funds, which is typically 2 weeks after the close date. The bond offering closes June 12th, I should receive the funds at the beginning of July and then I will start paying everyone back with interest 30 days after that.  So probably around August 1st. As I pay down the principal amount, your interest earnings change. So you'll make more money in interest at the beginning and less towards the end. The SMBX website has a great calculator that will show exactly how much you can expect to earn in interest over the life of the loan. Here's their website and our offering page.  If you type in how much you're thinking of investing and then click the hyper link that says estimated payment schedule I think it will make sense. 

 

If I want to pay it back early, I can, I just have to have ALL of the principal amount to pay it off.  So let's say i pay it off at month 24. You'll only receive the interest from months 1-24, not the interest for months 25-60. 

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Where did you get the fact that you’ve only had 21 investors from the Connect Community?

The 21 investor number came from the SMBX marketing gal. She calculates it by investors that were new to SMBX and only invested in my campaign. It might be off a tiny bit but I think it makes sense what she was saying. Basically if someone is totally new to the platform and only invested in Connect, it's safe to assume they were directly from our Connect community. The newsletter says 21 from the connect community but you're not the first one to question that! It's hard to write a newsletter that is short but also really depthy. lol. I don't know if that's a word. I'll have investments from people within the SMBX community that have invested in other campaigns as well which is what brought us up to the 80 mark. 

 

The gal at SMBX also said that typically the SMBX investor pool usually waits to see what happens with a campaign from the 2 week mark to the 80% finished mark.  If they see good momentum during that stretch, they usually invest heavily. So fingers crossed! 

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