“Given the scope of the project – a new business, unlike anything done in New York State before – it was essential to find the right lender. Pursuit came through, keeping up with my tight timeline and providing the financing I needed to move forward,” says Kate Butchart, owner of KOS Sauna, the first floating sauna in New York State.
Here’s how Pursuit helped Kate get the funding she needed for KOS (which is pronounced like “cozy,” but without the ‘y’ and means warm and simple pleasures in Norwegian) with an SBA 7(a) loan to create something entirely new in Saratoga Lake.
Embracing sauna culture
Kate grew up on the Jersey Shore and has always felt deeply connected to water and its ability to soothe and heal. Professional opportunities took her to Europe, including Norway, where she not only learned about sauna culture – the enjoyment of sauna in daily life to refresh, restore, and foster community connection – she embraced it fully, integrating it as part of her overall wellness routine.
“Sauna is essential throughout Northern Europe,” Kate explains, “and floating saunas are distinctly Norwegian – you see them floating throughout the fjords. As I embraced life in Norway, even gaining dual U.S./Norwegian citizenship, sauna was something that felt both new and natural – and deeply healing.”
When she moved back to the U.S. to be closer to family, she realized that there was a great opportunity to bring this Norwegian ritual to others.
The journey to KOS’s launch
Kate began scouting locations in Upstate New York. “I’d heard about the beauty of the region’s lakes but hadn’t experienced them until recently. They were a revelation,” she admits.
Among them, Saratoga Lake ticked all the boxes – a beautiful and swimmable lake, proximity to the Saratoga Springs legacy of healing waters, an easy drive from the New York metro area, and the right weather, including chilly winters. After conversations with several marina owners, she found the right fit with Lago Marina, which means that sauna-goers also have easy access to one of the area’s most popular restaurants, Lago by Druthers.
SCORE provides essential guidance and a Pursuit recommendation
“Finding the right location became the easy part,” Kate says of a business-development journey that has included many challenges, given that it’s the first of its kind in New York State.
“I was so lucky to connect with Richard Sellers of Northeast NY SCORE,” Kate says. SCORE is an organization of volunteer experts who mentor small business owners at every stage.
Richard helped Kate develop her business plan and financial projections, as well as to connect with local officials to gain support for KOS. She also had designs in-hand thanks to Bjørnar Haveland, KOS architect and collaborator, who owns Laugaren, a floating sauna in Bergen, Norway. KOS’s beautiful design includes a reception lounge, private changing rooms, a 15-person sauna, stunning roof terrace, and of course, access to the lake for cold plunging.
“I met with some local banks,” Kate explains, “but they weren’t able to provide all of the financing that I needed, since we had to design and build the floating sauna from scratch. Fortunately, Richard told me about Pursuit – and that was an incredible recommendation.”
Soon, Kate was in touch with Pursuit AVP and loan officer Michael Weijola. “Once Michael and Pursuit were involved, the whole process got easier,” she says.
Pursuit sees potential in something brand new
Pursuit works with small business owners to learn their vision and goals. Then, we provide SBA loans and other financing options, helping entrepreneurs secure financing when banks aren’t able to move forward. In Kate’s case, Michael recommended the SBA 7(a) loan program, which includes financing from $50,000 to $5 million for startups and growing businesses in qualified industries, with approvals secured 30-45 days after the submission of a completed application.
“Financing was essential to getting the sauna built,” says Kate, who worked with a custom builder, East Coast Houseboats in Hancock, NY. She also needed safety equipment and other necessities to outfit the sauna. Gaining the support of the town and state were critical, too, as was navigating the different types of licenses and approvals needed, which took longer than anticipated. “Since there was no comparable business or industry, we ran into speedbumps but Michael and Pursuit kept the process moving forward.”
Kate says, “Pursuit has been great. Everyone I worked with was wonderful, no matter the challenge. They were professional and responsive and it was a great partnership.”
“I was first introduced to the KOS Sauna from my colleague, VP and Senior Business Development Officer Nicole Deyo,” says Michael. “We’ve worked on projects within the wellness sector, but this was a business concept that was new to both of us. Upon the initial call with Kate, I was impressed by both her business acumen and her passion for sauna. She explained the benefits and how a public sauna creates community. Her business plan aligned with Pursuit’s mission and core values and Kate was responsive to questions and requests throughout the loan process. We’re happy to help her vision come to fruition.”
KOS is taking reservations as Kate and the KOS team – three employees, as well as Bjørnar and KOS’s marketing and legal advisor, Tom Varghese – prepare to launch in late autumn 2025.
Bring your dream to Pursuit. We’ll help you make it a reality.
Kate says, “Sauna is essential in my life and I’m so excited to bring something so positive and new to upstate New York. It’s a wonderful and restorative way for people in the area and visitors to spend time and I’m so happy that Pursuit understood my vision.”
Pursuit is a leading small business lender serving businesses across New York, New Jersey, Pennsylvania, Connecticut, Nevada, Illinois, and Washington. We offer loans and a line of credit for working capital, commercial real estate, equipment, and much more. We’ve helped thousands of small business owners get the funding they need to achieve their goals and dreams and we can help you, too.