PERSPECTIVE
Thank you for talking with me . Obviously , it ’ s a very sad situation . Can you tell us what brought about the end of the Hacker Lab ? We were in business for quite some time before we took on our first loans . While making the move from the I Street location , we took a loan for $ 125,000 in addition to our basic $ 100,000 line of credit . I thought , OK , well , you know , we ’ ve been in business for seven years and we make this much annually . So it ’ s normal when you ’ re expanding to get some debt . And so I didn ’ t really pay much attention to it .
When the pandemic hit , we had three locations ( Sacramento , Rancho Cordova and Sierra College ) and we were partnered with Sierra College and the City of Rancho Cordova , Placer County , and the City of Sacramento . So we were highly funded at that time , but we were never really a positive cash flow company . It ’ s kind of one of those businesses that we do because we believe in it , and it ’ s much bigger than us . So we knew we were never going to get rich off of it , and that was never our agenda .
When the pandemic hit , it ’ s when everything kind of started hitting the fan . We decided to close the Rancho Cordova location and before we could close the Sierra College location , our school partner made the decision .
So there went all of this revenue because these things were happening , the pandemic was happening . We got the PPE loan and other forms of federal aid to cover our costs but with revenue down 40 percent , the loans could not hide the bigger problem . By September , ( we ) got another $ 500,000 loan so now our debt is $ 750,000 . At the same time , all of our funders were pivoting on what they were funding .
We were basically making all the asks for funding . We were giving people our numbers , our data , like we served over 3,000 people a year in our space . We presented our demographics , our impact during COVID . It was exceptional work by my team .
Our business model wasn ’ t working anymore and our rent went up . We moved to the R Street location expecting to ramp up our membership , but because a pandemic happened we were never able to achieve that .
Despite all this , I believed in our team and our mission so I pressed on to get a Small Business Administration loan . We were looking at laying off people and I didn ’ t want to do that . I called every day to get that loan . I had smart advisors telling me to walk away and save myself but I couldn ’ t see it .
I thought getting the loan was a godsend , but it only pushed us deeper into debt . Once I wrapped my head around having to personally guarantee $ 1,000,000 , I decided I can ’ t go forward with this big machine . I ’ ve put my heart and soul into it and I think we ’ ve done something profound for the city , but I can ’ t go on .
I know a lot of people will wonder if there is anything that could be saved . Is it too late ? Could it be rescued ? So in its current form , I can honestly tell you ; like , for me , I ’ m done with that . Eric Ullrich ( former business
A small group workshop takes place at the Rocklin Hacker Lab in 2017 .
partner and co-founder ) moved on . He was really the operations behind the makerspace aspect of it . I handled the programs and he handled the makerspace . If anybody wants to carry on and we have a good relationship , come talk to me and let ’ s see what we can do . That ’ s been put out to the close circle .
I have a lot of people kind of reaching out and saying , how can we help ? I ’ m planning on pivoting and moving into a smaller space and have a more focused approach on things that I feel that I ’ m passionate about .
My work is not done . We have contracts that are pending with the city . We have contracts with the county . The county ’ s been a really great help and supporter of ours . And we do have a contract coming up with Kaiser . These programs will target low-income women .
I have to carry on because I feel like there ’ s more work to do . I don ’ t think we ’ re done yet . And I really feel this is an evolution . Everybody thinks I ’ m crazy , that I should just go sit down and just rest for a minute and figure out what ’ s my next move .
36 comstocksmag . com | September 2022