Bobby Katsabas and his wife Effie Katsabas are the owner-operators at Katy’s Snappy’s Café and Grill on Hwy. 90 in downtown Katy. Together with slightly more than a dozen staff, …
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Bobby Katsabas and his wife Effie Katsabas are the owner-operators at Katy’s Snappy’s Café and Grill on Hwy. 90 in downtown Katy. Together with slightly more than a dozen staff, the Katsabases run a gathering space for the residents of old town Katy and have for more than 16 years, Bobby said. It was close, he said, but he was able to make it through the last two months of new coronavirus-related limited operations without letting any staff go.
“I was very close to having to shut down,” Bobby said. “I had to use my own money (from my retirement fund). I thought about it and I’ve been working all my life for this and I didn’t want to let anybody go.”
Snappy’s isn’t the only business struggling right now, said Don McCoy, president of the Fulshear Katy Chamber of Commerce. In his role he’s spoken with several chamber members facing financial, demand and workforce challenges due to COVID-19. They do have hope though, he said.
“A general feeling I get from my members is they know this isn’t going to last long term,” McCoy said. “(They’re) grateful about the governor opening responsibly where other states are not and they’re grateful for that.”
McCoy said the chamber has been working to connect members with aid through the federal government such as the CARES Act relief that many members are eligible for as well as local programs.
The Katsabases said they are grateful for the help from the CARES Act’s Paycheck Protection Program, but the assistance comes almost too late due to the way the program was rolled out.
“They changed the applications three times,” Bobby said. “It took forever, then they run out of money. I think the banks were giving the PPP to the big businesses.”
Bobby is right to an extent.
A May 30 report from the U.S. Small Business Administration shows that about 2.2 million PPP loans went to companies with more than $10 billion dollars in assets while about that same amount went to companies with less than $10 billion in assets. The second round of PPP loans granted 1.23 million loans to businesses with less than $10 billion in assets while awarding 1.6 million loans to companies with $10 billion or more in assets. Loans to small businesses in the first round amounted to 44% of the total and in the second round about 35.56% of the $186 billion in loans to date have gone to small businesses like Snappy’s.
The second round of PPP loans was signed into law Apr. 25 by President Donald Trump after funds had run out in mid-April for the first round of $349 billion in small business support. As of May 30, about $184 billion of the second round of $370 billion in SBA loans through the SBA’s PPP was still available. To date, Texas businesses have received about $40.2 billion in PPP funding.
After the third time applying, the Katsabases said they were finally able to get the PPP loan when it renewed, but if it hadn’t been for the support of community members, they might not have made it through their third disaster shutdown in the last four years – The 2016 Tax Day Floods, getting flooded by Hurricane Harvey and now the new coronavirus pandemic.
Effie said she truly appreciated the public’s support not just of Snappy’s, but of the restaurant’s waitstaff.
“They’ve been coming in and tipping the staff extra to help them with money,” Effie said.
McCoy said he’s seen other businesses go through what Snappy’s has and the chamber is working to help with new tools, a support group on Facebook and coordinating with local officials to set up locally generated aid programs.
“I just got off a conference call and the chambers in Fort Bend County have put together a small business grant program,” McCoy said. “Up to $8,000 for as many small businesses as possible.”
McCoy said the program could be used by Fort Bend businesses that with an annual revenue less than $2 million and would be designed to help with rent, purchasing supplies, and other items needed to safely reopen. The application for the grant is expected to be available June 15, McCoy said.
Bobby said opening up dine-in seating again has been a relief, though the initial 25% capacity he was allowed to open at wasn’t useful, but now that he’s allowed to operate at 50% capacity, it’s really helping.
“It’s started picking up,” Bobby said. “The only thing we’re waiting for now is to find out when (Tex. Gov. Greg Abbott is) going to let us open up all the way. It’s essentially open and thank God it’s picking up.”
Bobby and Effie said the other challenge they’ve had is getting the word out that Snappy’s is open. The restaurant has been receiving phone calls asking if they’re open and they’ve had to figure out how to navigate Google to update their status to open because the search engine had flagged the eatery as “temporarily closed.”
McCoy said he has heard similar concerns about getting the word out about reopening from chamber members and business owners. To help, the chamber is launching a subscription which allows non-member businesses to announce their opening on the chamber’s website. The chamber is creating a new search engine called TriCountySearch.com which is expected to go live soon. The search engine will provide an updated status for the businesses and help keep money in the local economy, McCoy said.
Still, McCoy said businesses are having a hard time because demand is low and people are still ordering online rather than going to local businesses because they’re worried about keeping their families safe from COVID-19.
“The stumbling blocks right now are simply the lack of demand because people were being told to stay home and people aren’t coming into their businesses. They’ve had to lay off. When everything comes along and demand goes down, you’ve still got to pay the rent,” McCoy said.
It’s also hard to get people to start working again, Bobby said. He’s currently looking for a cook, but is having a hard time finding someone because many of the people who lost their jobs are making more money on unemployment under the CARES Act than they would at a job.
“They’re making more money. You think they want to be working? They want to come back when they finish the (unemployment) money,” Bobby said.
Under the CARES Act, those on unemployment receive $600 in addition to their regular unemployment insurance benefits according to the Texas Workforce Commission which manages the state’s unemployment claims.
McCoy said chamber members are complaining about the same thing the Katsabases are.
“Staff aren’t coming back because they’re actually making more money from government assistance than they were when they were actually working,” McCoy said.
However, according to rules to remain eligible for unemployment, TWC and federal guidelines indicate that workers must actively search for employment and accept suitable work if it is offered to them.
Despite staffing concerns and financial challenges, McCoy said he believes with the aid available and the demand that will be coming as the state continues to open up, area businesses will adapt and find ways to continue to operate in the Katy area – especially if they ask for the help they need.
“We do have the proper help from the chamber, the state and the SBA. There is help. All you’ve got to do is ask for it and apply for it and it is available to you,” McCoy said.