February 2, 2017

North Cascades Mountain Hostel

Winthrop, Washington

North Cascades Mountain Hostel

Craft3 Business Loan helped North Cascades Mountain Hostel purchase property and remain open.
Nestled on the eastern slope of the Cascade Mountains in the Methow Valley, you’ll find North Cascades Mountain Hostel. It sleeps up to 28 guests in its private cabins and communal bunkrooms. This is the sort of place where travelers can share space and experiences with people from all over - with hiking, biking, skiing, rafting and fishing close-by.

That is exactly why husband-and-wife team Paul and Audrey founded it in 2013. After the two met in Greenland while studying the Arctic ice cap for the National Science Foundation, they moved to Winthrop, where they could maintain a deep connection to the outdoors – and also fulfill their dream of starting and owning a hostel.

Over the next several years, Paul and Audrey made improvements, adding private cabins, an office and staff quarters. Then, unexpectedly, their landlord decided to sell the property.

Having invested significant time and money in the hostel, the couple knew the only way to save their business was to purchase the land themselves. Unfortunately, hostels are considered niche lodging and high-risk by traditional lenders. After being denied for a bank loan, the Small Business Development Center connected them with alternative lenders North Central Washington Business Loan Fund and Craft3.

In partnership with the U.S. Small Business Administration, the lenders created a $268,500 loan package that allowed the couple to purchase the property and keep their business open. It is the role Craft3 is meant to serve: providing financing where other institutions can’t and helping entrepreneurs achieve their dreams. Learn more at www.northcascadesmountainhostel.com.