Maria Romo and Noah Maldonado are the owners of Que Concha, which opened as a brick-and-mortar location last year. Que Concha Facebook photo

Ice-cream filled conchas have been a community favorite in Visalia and Tulare County for years. The twist on the Mexican sweet bread staple was introduced by Que Concha, which opened a new shop in Visalia in October 2022 after operating as a food truck for five years. In addition to sweet bread, the shop also offers ice cream and drinks.

In an effort to raise working capital, Que Concha has launched an offering through the Small Business Bond Marketplace, or SMBX. Owner of Que Concha Maria Romo said she wants to shake things up by adding some diversity to the menu. She heard about SMBX and decided to give it a go.

As of Wednesday, Que Concha has raised nearly $25,000 of their $50,000 goal, up from $16,270 a week ago.

Title III of the 2016 JOBS Act allows small businesses access to debt-financing, such as bonds, for those that might not be able to afford legal fees associated with drawing up plans for an equity raise.

 

Through SMBX, small businesses can raise capital from their communities, and in return, local investors can gain money back.

Romo talked to an SMBX representatives, finding it fits their set of goals. Another local business in Tulare county also found that SMBX met the needs for their business.

In 2020, Quesadilla Gorilla started offering the bonds to fund expansion of a Three Rivers location and to open a fifth location for the Visalia-based chain.

“It’s a great way to get the community behind us and invest in something local,” said Miguel Reyes, co-owner of Quesadilla Gorilla.

He said that selling bonds was a way to get the public involved, with the interest payments going to community members.

That also appealed to Romo.

“We chose SMBX due to the reliance SMBX loans allow on our own community,” said Romo. “We really liked that the money would come from our community and would go back to them with interest.”

SMBX spokesperson Peter Barden said anybody can invest in Que Concha starting at just $10 and earn interest upwards of 10% on their investment.

“They’ll think about it every month when they get their payment and remember they’ve invested and purchased more of their products. It breeds a little bit of additional loyalty from their customer base,” said Barden.

With the $50,000 bond offer, Que Concha seeks to purchase equipment ($27,750), build outdoor seating ($10,000) and expand marketing ($10,000). They also pay a fee to SMBX of $2,250. The interest on the bonds is 10%. The campaign ends once the $50,000 goal is met.

Investors can expect monthly payments.

Que Concha is subject to seasonal consumer patterns. A way for Que Concha to retain its customers during the winter season is to make changes to the menu, which also brings in new customers.

“We are an ice cream business, so during the winter months, our off-season was brutal,” said Romo. “We are picking up speed now, but we need the investment to survive the upcoming off-season this next year.”

Right now, many businesses are facing high inflation, but Que Concha took the risk of offering the bonds for their business.

“We hope that these funds will give us the opportunity to gain more sales and revenue, so we can get ahead of inflation and start paying off as soon as possible,” Romo said.