COVID-19 relief options and additional resources
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David Alcorta Catering

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 a 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 and 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.

 

Through 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 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.

Location: 
Houston, TX
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