“This is a dream come true,” says Kristeen Colby about the creation of The Penalty Box Arcade in Lake Placid, NY, that she opened in March 2025. “And I couldn’t have done it without financing from Pursuit.” Here’s how she’s launching her new business with guidance from her local SBDC and two SBA loans and support from Pursuit.
Ready for a change
“I was an emergency room physician’s assistant during the pandemic,” says Kristeen. “It was exhausting and stressful and after that, I needed to do something different that brought joy.” That goal became the driving force behind Lake Placid’s newest arcade and lounge.
“When my kids were younger, there wasn’t a year-round arcade for them to play and have parties, so we’d drive two hours roundtrip to Plattsburgh,” Kristeen says. “This seemed like a great opportunity to do something fun for year-round and summer residents and tourists, too.”
Kristeen worked with Michelle Collins of the North Country SBDC at SUNY Canton on developing a business plan and financial projections.
“We’re a hockey family and my daughters and I are avid hockey players. I played through college and still play now from time to time, and my youngest daughter’s 14U travel hockey team, the Massena River Queens, just won the New York State championship this year in March, and they went to nationals in Fort Lauderdale last month! And the arcade is located in Lake Placid, which was home of the 1980 Winter Olympics and the ‘Miracle on Ice,’ when the US Men’s hockey team beat the Soviet Union for the gold medal,” Kristeen says about choosing the arcade’s theme. “And, of course, the penalty box is as much a part of hockey as sticks and pucks.”
She realized that to bring her dream to fruition, she’d either have to go a very slow-but-steady route of purchasing an arcade game or two a year, or she’d need financing. With help from the SBDC, she prepared for the process of applying for a loan and Michelle recommended that Kristeen contact Pursuit.
Pursuit helps Kristeen secure two loans
Kristeen worked with Pursuit VP and Loan Officer Nicole Deyo and VP and Loan Officer Max Sergovich. They helped her prepare an SBA 504 loan application to purchase the site – a former restaurant with nearly 5,000 square feet of space to house the arcade, a café and bar/lounge area, a commercial kitchen, and office space. The SBA 504 loan, which helps small business owners purchase commercial real estate for their ventures, offers a much a lower down-payment than conventional commercial mortgages – 10-15%, instead of 30% or more – which makes purchases like Kristeen’s feasible.
“Without the SBA 504 loan,” Kristeen says, “it wouldn’t have been possible for me to purchase the building for The Penalty Box. The lower down payment made all the difference.”
SBA 504 loans also have a longer repayment term, up to 25 years, which makes monthly payments lower, and a fixed interest rate. This makes it easier to budget and frees up cash to reinvest in the business, which is particularly important during the critical first years of operations. These loans are made in partnership with a bank and Champlain National Bank was the partner for Kristeen’s deal.
At the same time, the Pursuit team helped Kristeen secure an SBA 7(a) loan to outfit the space, including purchasing classic arcade games and additional furniture, fixtures, and equipment (FF&E) to make The Penalty Box Arcade complete, with additional funds for working capital.
“The SBA process is intense, especially if you’re new to business loans, as I am,” Kristeen explains, “but my Pursuit team has been excellent. They’re responsive and supportive and their insight has made the whole process easier.”
A family-focused business means more time with family
“Even though we’re busy with our launch and with getting ready for the busy summer season, I get to spend more time with my family now than when I was working in the ER,” Kristeen says. As someone who intentionally created a family-friendly space to hang out and play, this is important to her.
The Penalty Box also focuses on providing an authentic arcade experience with old-school arcade games and by using real tokens, real tickets, and a ticket eater with a prize-redemption counter, unlike most arcades today that use card readers. And throughout the arcade, there are additional special touches that strengthen the hockey theme – including employees wearing referee uniforms.
As The Penalty Box Arcade gets fully underway, Kristeen’s family members, including her daughters, are helping out with every aspect, from renovations to daily affairs.
“I’m very thankful for all the help and advice I’ve received, especially from my uncle, Doug Hoffman, who has given me tremendous support and has been my mentor throughout this entire process as well. My goal now is to get each of the spaces up and running well,” Kristeen explains. “Then, I just want to focus on creating a fun and wonderful experience for all.”
Pursuit helps small business dreams come true
Kristeen offers this advice to other entrepreneurs, saying, “Whatever your dream is, don’t think it’s out of reach, because it absolutely can come true. If you have a solid plan and projections and you work with the right people and lenders, dreams can happen!”
Pursuit can help you, too. With loans from $10,000 to $5.5 million, we have financing for working capital, equipment, the purchase or construction of commercial real estate, to refinance business debt, and more for businesses in New York, New Jersey, Pennsylvania, Connecticut, Nevada, Illinois, and Washington. And our Business Advisory Services are available to Pursuit borrowers to help you succeed. Contact us to learn more.
