Napa Valley Gondola: How An SBA Loan Quadrupled Business

Press release from the City of Napa:

NAPA, CA — When it comes to unique Napa experiences, few are as distinctive as gliding along the Napa River in an authentic Venetian gondola. For local entrepreneur Sean O’Malley, a Small Business Administration (SBA) loan secured with assistance from the Solano-Napa Small Business Development Center (SBDC) has transformed a passion project into a thriving enterprise that has become an iconic part of downtown Napa.

O’Malley has long been drawn to the beauty of the Napa River, which he considers an underappreciated asset of the City. Many visitors aren’t even aware of the river flowing through the heart of Napa, and he saw an opportunity to showcase this natural treasure to a wider audience.

As a former college rower, O’Malley was drawn to the opportunity to be a gondolier when the chance presented itself. What began as a quasi-retirement activity evolved into a rapidly growing business. The gondola business initially came to Napa when the City approached Gondola Servizio to expand from Oakland to the downtown Napa dock. As a Napa resident, O’Malley started as an employee, finding it the perfect opportunity to combine his location with his passion for rowing. After working as a gondolier for some time, he recognized the business’s potential and quickly fell in love with every aspect of it. Within a year, he expressed interest in buying the operation—which happened just two weeks later. In 2019, he purchased the business and Napa Valley Gondola was officially established.

After taking over in 2019, O’Malley rebranded and renamed the operation as Napa Valley Gondola. As demand grew steadily, he started leasing a 50-year-old gondola for $1,000 per month—a vessel that was generating approximately $50,000 monthly in revenue. This success led him to purchase two idle gondolas from Venice, expanding his fleet with these impressive 40-foot, 1,300-pound traditional boats.

Each gondola is a masterpiece of craftsmanship, authentically handmade in Venice, Italy. The boats are constructed with 280 customized pieces using eight types of wood in a labor-intensive process that takes up to six months. Following Venetian tradition, O’Malley even serenades his passengers with Italian classics as he navigates the river.

The business journey had its challenges. Starting as a sole proprietorship, O’Malley incorporated in 2021. When the time came to further expand operations, he shifted from personal to business credit and sought an SBA loan to finance growth. Working with the SBDC, he secured a seven-year capital loan that significantly increased cash flow and enabled further expansion.

“That loan accounted for 10 new jobs in downtown Napa for gondoliers,” O’Malley noted.

The impact was immediate and substantial—the business tripled in a single year. After starting slowly due to permitting issues and COVID-19 disruptions, the business has seen remarkable growth, with annual revenue increasing from $30,000 to $190,000, then to $230,000, and most recently to $290,000. He anticipates a 40-50% increase in the coming year.

The success story continues to evolve. O’Malley has recently expanded his business platform by acquiring an existing kayak company and leasing a motorized boat for wine tasting excursions that can venture further along the river than the gondolas. These strategic additions have allowed the business to scale its operations while efficiently utilizing marina space, offering visitors a wider range of river experiences.

His tours showcase the Napa River’s natural beauty, wildlife, and the successful restoration project that has transformed the river into an environmental model for flood control. Passengers often spot a variety of birds, beavers, seals, sea lions, and occasionally river otters or even dolphins while learning about the river’s history and ecology.

More recently, the City of Napa put out an RFP for a single vendor to manage multiple river-based activities at the downtown dock. Thanks to well-organized financials and proven operational success, O'Malley’s company secured sole control of the downtown dock at 680 Main Street, further cementing its place as a cornerstone of Napa’s riverfront attractions.

His advice to other small business owners? “Find something that you'll be passionate about that turns into a job that doesn't feel like a job. As soon as you start having income, get on an accounting tool and make sure your books are lined up. Get a bookkeeper and a CPA to make sure expenses, revenues, etc. are all in line.”

For O’Malley, the business combines artistry, physicality and the camaraderie of gondoliers, with an addictive quality to the job and the inherent beauty of the gondolas themselves—a perfect blend of passion and profession that continues to enhance Napa’s visitor experience while highlighting the unique natural features of the Napa River. Thanks to the SBA loan facilitated by the SBDC, O'Malley was able to secure the capital needed to expand his fleet, hire new gondoliers and grow his business, turning his vision into a thriving operation that now plays a key role in Napa’s riverfront tourism.

This press release was produced by the City of Napa. The views expressed here are the author’s own.