Justin and Jeane Henrichsen Become Full Owners of Independent Ale House and Windsor Block Bar
About 15 years ago, Justin and Jeane (Cheyenne River Sioux) Henrichsen set out to introduce something new to downtown Rapid City, South Dakota. Although the craft beer movement had been surging in other parts of the country since the early 2000s, that trend had not yet made its way to the heart of the Great Plains. In 2011, the couple along with another business partner opened Independent Ale House with 28 craft beers on tap.
“There was no such thing as a craft beer bar in Rapid when we opened. We felt the need for a niche experience though,” states Justin.
Both Justin and Jeane had lived in other parts of the country and seen the increasing prevalence of microbreweries and the rising popularity of craft beer. With Jeane’s design background, Justin’s construction experience, and their partner’s established banking relationship, the essentials were in place for a successful launch.
“Because of our background, we did 90% of the work on our own,” says Jeane of Independent Ale House’s start up. She explains that the venture became a family affair with the couple’s two children helping out where they could. Even now as young adults, the Henrichsen’s children come in as back up every now and then.
The couple says the first few years were a heavy lift, but they stuck with it and grew Independent Ale House from an idea into a thriving craft beer destination. The Henrichsen’s attribute much of their success to having a great team in place – from servers and bartenders to managers and bookkeepers. They pride themselves on having a low turnover rate – something that is unheard of in the service industry.
“We have a simple philosophy,” says Justin. “We take care of our employees. Our employees take care of our customers, and our customers take care of the business.”
After a decade-plus of success with Independent Ale House, Justin and Jeane along with their business partner started another niche bar in downtown Rapid City. In 2022, they opened Windsor Block Bar, a high-end craft cocktail bar.
“Windsor provides an elevated experience; it’s something unique,” says Jeane. So far, it has been another great success.
Then more recently, their business partner approached them about buying out his share of both Independent Ale House and Windsor Block Bar.
“He’s transitioning into the next phase of life and wanted to downsize,” Jeane points out.
Active with the operation and management of both bars, the Henrichsen’s knew a deeper investment into the two businesses would provide a definite financial return. The challenging part of the situation was that banks weren’t so sure.
“Even after so many years in the black and a successful track record, banks still see our businesses as high risk. It’s because there is a high failure rate in the hospitality and service industry,” says Justin. He recounts a series of closed doors associated with financing the launch of Windsor Block Bar. “Our banking relationships haven’t gone so well.”
Justin and Jeane were staring at the investment opportunity of a lifetime but faced closed doors when accessing the capital necessary to grab a hold of it. That’s where Four Bands Community Fund came into the picture. As a mission-driven lender, Four Bands holds a different philosophy when it comes to lending.
“We view our borrowers as whole beings and examine a series of other factors when considering a loan application. When we deploy a loan, we aren’t just looking at the numbers. We are also looking at how that capital could impact the community,” says Kristen Stambach, Director of Lending at Four Bands.
Because Four Bands is a community development financial institution (CDFI), they can provide flexible terms to meet their borrowers’ needs along with a range of other services designed to support the long-term viability of small businesses.
Justin says, “Four Bands was such a great fit. They came in and understood our needs, what we were trying to do, and believed in our record.”
In December 2024, the Henrichsen’s were able to use loan proceeds from Four Bands to buy out their long-time partner and become full owners of Independent Ale House and Windsor Block Bar. Their business partner is enjoying the next phase of life at a slower pace, and the Henrichsen’s 40 employees are benefitting from job security knowing the companies’ ownership will remain in the same hands.
The Henrichsen’s say the change in financing has led to more freedom in their business operations. “The loans from Four Bands have helped us to be independent from banks and provided us with more flexibility when it comes to our banking relationships.”