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Burlington, Vermont - January 28, 2011

The kegs are rolling off the line at the Switchback Brewing Company as workers try to keep supply meeting demand. Even by the company founder's own admission, Switchback's success defies just about every rule of the business world. Switchback has no website, limited marketing and the beer is not available in any stores. But still it's one of Vermont's most popular brands in bars and restaurants.

"That's the million dollar question. I don't know if you can duplicate how it happened!" said Bill Cherry of Switchback.

Cherry launched his Burlington brewery after working as the production manager for a major Midwestern craft beer label. That was in 2002, when he did everything himself. He wanted a straightforward, easy-drinking beer-- crisp and not too hoppy or bitter. The result was an unfiltered ale that stresses consistency. It grew simply by word of mouth.

"I think Bill has a very, very bright future," said Jeanne Hulit of the U.S. Small Business Administration.

Friday, representatives of Vermont's congressional delegation and the U.S. Small Business Administration were at the brewery toasting Cherry's success and praising him as one of the country's business owners who kept people like plumbers and electricians working during the recession. Cherry's recent big expansion helped give jobs to tradesmen and ensure work for his 11 employees. Down the road, he's likely to add jobs.

"We're looking to the entrepreneurs of America to create the innovations, create the jobs, but they may need the assistance. And we can help them find the assistance," Hulit said.

The SBA is a government agency that supports small businesses. Its role got more critical under the federal Recovery Act-- when the feds wanted to encourage banks to lend more. "You hear about the credit crunches and everything else," Cherry said.

The SBA backed 90 percent of Cherry's $600,000 bank loan. He recently used it to buy massive fermenting tanks that will let him double his beer output. "The beer is, I think, better than ever," Cherry said.

It was his eighth SBA-guaranteed loan. Over the years, Cherry's resisted outside investors, even though they might have helped him fund faster expansions.

"We're able to stay locally controlled-- locally owned, and keep that the heart of Switchback," Cherry said.

Slow and steady is winning the race. Vermont taps drink up 20,000 kegs a year and the brand has just expanded into New Hampshire, and certain New York markets. Maine is next, and with the new tanks, consumers may one day be able to get bottles for home.

"We want to be very careful and deliberate because of the quality issues we might have," Cherry said.

He thanks his loyal customer base for believing in his vision of a beer recipe that somehow makes the hard work of blending grains and yeast seem effortless.

"It's good and drinkable," Cherry said, downing a sample of his ale.

As Switchback ships its "Made in Vermont" beer to new a growing customer base, Cherry is finally getting around to setting up a website this year.

Click here for more information on the SBA, including educational programs it offers to business owners.

Jack Thurston - WCAX News