CDFI Helps Hispanic-Owned Restaurants in Rural Georgia Create Jobs and Thrive Through Pandemic
Client: GrapeVine’s Italian Restaurant
Client Location: Dahlonega, GA
CDFI: Access to Capital for Entrepreneurs (ACE)
CDFI Service Area: GA
Financing and technical assistance for small businesses, including climate-related financing, through OFN’s Finance Justice Fund.
GrapeVine’s (New Window) is a casual Italian restaurant and bar based in rural tourist destination Dahlonega, Georgia. Previously owned by local restaurateurs and franchisors Sergio Moriera and Laura Estrada, the business continues to thrive under new ownership.
When GrapeVine’s chef and manager Matias Ruiz and Alfonso Virriel decided to purchase the franchise from Moriera and Estrada, they sought financing but faced challenges accessing capital. Considered a startup by mainstream funders due to the transfer of ownership, combined with their business financials getting hit hard by the pandemic, Ruiz and Virriel did not quality for traditional funding.
ACE Offers Pandemic Lifeline with Business Capital and Coaching
Following a referral from Moriera and Estrada, Ruiz and Virriel approached Access to Capital for Entrepreneurs (ACE), (New Window) a community development financial institution (CDFI) serving Georgia communities. Moriera and Estrada had been longtime clients of ACE, receiving ACE’s first loan to a Hispanic-owned business in 2004, which enabled them to purchase a restaurant in Dahlonega and eventually expand to seven restaurants, including GrapeVine’s.
Ruiz and Virriel received their first small business loan from ACE in 2021 – still in the midst of the pandemic – to buy GrapeVine’s. The loan included an interest rate buydown and nine months of payment forgiveness earned through participation in ACE’s business advisory services. The reduced interest rate and payment forgiveness amounted to business savings over $52,000 over the life of the loan.
With restaurants particularly hard-hit by the pandemic, GrapeVine’s was also selected to receive a $2,000 grant through ACE to support their pandemic pivot and recovery strategies.
Deep Community Relationships Produce Strong Returns
In October 2023, Ruiz and Virriel returned to ACE for a loan to pay off financing from the previous owners and consolidate their debt into one loan. Due to strong repayment history with their first loan and active participation in ACE’s business advisory services, along with ACE’s expertise in restaurant financing and Dahlonega’s tourist economy, ACE was able to provide Ruiz and Virriel with the additional capital they needed.
Ruiz and Virriel received over 80 hours of business coaching since obtaining their first loan, focusing on topics like marketing, analyzing costs and cash flow, and ways to increase revenue. This support helped them develop their financial knowledge, better understand the challenges and opportunities of opening a second location – which they have since achieved – and more.
The other secret to GrapeVine’s success besides access to affordable capital? “Pay fair wages and treat employees with respect and dignity,” say GrapeVine’s franchisors Moriera and Estrada. In addition to providing owner financing, they have continued to assist Ruiz and Virriel in sustaining and growing the business.
CDFIs Help Create Jobs Across America
An investment in one person impacts many, creating a ripple effect beyond the immediate business owner. CDFIs like ACE exist to reduce barriers to capital access across America, combined with coaching and connections to empower business ownership, wealth building, strong communities, and economic growth through job creation.
With ACE’s support, Ruiz and Virriel have provided six full-time and 12 part-time jobs and counting at GrapeVine’s, helping not only the owners generate income and build wealth but also other community members. In addition, Moriera and Estrada, who started with four staff, now employ over 150 people through their network of restaurants.
“Thank you to ACE for making this dream a reality. We will always appreciate Sandy (loan officer), all the advisors and staff at ACE that really care about us and treat us with a lot of respect and professionalism. We are happy to be able to give back to the community creating jobs and supporting our local schools and different county programs,” said Ruiz.
Through 2022, financing from ACE and other OFN members has helped create or maintain more than three million jobs in communities across the country. Learn more about OFN member impact.
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