SBA COVID-19 Relief Funding Leads to Savory Salvation
Summary
This SBA success story profiles David Alcorta Catering, a Houston, TX catering and specialty cake business, and its use of federal COVID-19 relief. The document says almost all of its contracts were canceled when the pandemic hit in March, and that owner David Alcorta pivoted to curbside and pop-up events and provided over 500 meals for first responders. Alcorta then applied for the Paycheck Protection Program, the Economic Injury Disaster Loan and the Restaurant Revitalization Fund, worked with a large bank on the first-draw PPP loan and moved to Amegy Bank for the second draw. SBA states that the funding let Alcorta retain all of the employees.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
David Alcorta
Chef/Owner
David Alcorta Catering
Houston, TX
https://davidalcorta.net/
SBA COVID-19 RELIEF FUNDING LEADS TO SAVORY SALVATION
Background:
Graduating in 2009 with a degree in Baking and
Pastries, Alcorta began his culinary career as an
Event Manager at a large restaurant chain. In
February of 2014, David Alcorta Catering opened its
doors and today the chef is one of the most sought-
after caterers and specialty cake bakers in the city. In
fact, his wedding, quinceañera, gender reveal and
birthday cakes have been called “drool-worthy
fantasy creations that are Instagram-ready” by
Outsmart Magazine.
David Alcorta Catering is not all about cakes; just as
their name suggests, they also cater all types of
parties and events, supplying everything from the
food to the table linens to the TABC certified
bartenders and on-site prep. Being able to plan each
aspect of these life events is a passion that Alcorta
takes seriously.
Situation:
With steady bookings set throughout the year, 2020 started off as a year that looked to be profitable.
However, in March the COVID-19 pandemic hit, and almost all contracts were canceled. David Alcorta
Catering went from 200-300 people events to events that had only the allowable guidelines from the
CDC. This, along with having to follow strict CDC and City of Houston Health Department guidelines
regarding daily sanitation and six feet apart workspaces, ultimately led to loss in revenue and the
decision to cut staff hours.
Knowing his old business model was no longer going to work, Alcorta acted quickly in pivoting his
business to curbside, pop-up events and working with loyal customers to diversify the way in which
business was conducted. Alcorta worked with recurring customers, including the Spring Branch
Management District ana local real estate realtor to provide over 500 meals for first responders
Solution:
However, even with loyal customers and pivoting his business, Alcorta could not see the future of
catering. Uncertain of the length of the pandemic mixed with accumulating costs of rent and other
expenses, David Alcorta Catering was facing dire circumstances.
Though news media outlets, Alcorta heard about the differentiated COVID Relief options available
through the SBA. Trying to understand the different COVID loans, Alcorta and his partner attended
David Alcorta
Chef/Owner
David Alcorta Catering
Houston, TX
https://davidalcorta.net/
various SBA webinars to familiarize themselves with the process of the Paycheck Protection Program
(PPP), the Economic Injury Disaster Loan (EIDL) and the Restaurant Revitalization Fund (RRF).
For the first draw PPP loan process, Alcorta was working with a large banking institution. However,
feeling as if they were lost in the system, the decision was made to transition to a smaller banking
institution. Alcorta then worked with Amegy Bank for their second draw PPP where the company was
able to build a stronger relationship, even knowing their banker by name.
Impact/Outcome:
The SBA COVID relief options assisted David Alcorta Catering in staying in business. As a result of the
funding that was received from the PPP, EIDL, and RRF programs, Alcorta was able to retain all of his
employees—a staff that has been with him since the beginning of his entrepreneurial journey. These
funds not only provided hope to his business but were able to provide David Alcorta Catering a savory
success.
For more information on David Alcorta Catering, visit: https://davidalcorta.net/
For more information about SBA programs, visit: www.sba.gov/tx/houston
File and source
- File
- SBA_COVID-19_RELIEF_FUNDING_LEADS_TO_SAVORY_SALVATION.pdf
- Size
- 89,296 bytes
- SHA-256
- e6eae1cabb7200003c6c193217e5809274694ac9ec90482358321429a7837d00
- Original
- www.sba.gov