Ketchikan locals Judah and Chevy Horval understand the magic that draws people from all over the world to Southeast Alaskan waters. Their deep love for place is what motivated them to start their business, Whales & Lunch, which allows the Horvals to share their local knowledge with visitors on whale-watching and marine mammal viewing tours.
A love for place is also what drives them to operate in a way that gives back to their community, through partnering with Ketchikan small businesses, offering discounted locals’ rates on tours, and investing in the local workforce.
This past winter, the Horvals received a loan from Spruce Root that helped them buy a boat and establish working capital for their inaugural season.
After working closely with the Horvals, I had the opportunity to get out on the water with them during a friends and family boat ride this spring. It was a gratifying experience to walk down the dock and see the boat in person knowing our work together had helped them get to this point.
The lending process is not cut and dry; it is a continuous conversation. The Horvals came to Spruce Root ready to have those conversations and put in the work to receive a loan. I wish them all the best in their new venture.
-Andrew Jylkka, Program Manager for Small Business
Spruce Root sat down with Judah Horval as he was gearing up for Whales & Lunch’s first season to ask about his experience working with our lending team. Read on to hear our conversation.
Interview by Erin O’Farrell, edited for length and clarity
What inspired you to launch Whales & Lunch?
When it came to deciding what kind of business to start, there were a few boxes to check. Having family time was the first box – I wanted to start a business where I could spend as much time with my family as possible.
The second one was finding something that could financially provide for my family, be expandable, and could scale. The third one was finding a niche that aligned with my expertise and licenses. And the fourth was building something to help other local businesses and my community.
That led me to find what I believe is a hole in the market in Ketchikan tourism: whale watching and marine mammal viewing. After looking at feasibility, working with the Alaska Small Business Development Center (AKSBDC), and running some projections, it seemed like a viable plan, and we ran with it.
What does your business offer to the Ketchikan community?
What is the point of living in Southeast Alaska if you can’t go out on the water?
My goal is to get visitors out on the water so they can experience what made me fall in love with Ketchikan in the first place. We have also been able to offer locals tours and provide significant discounts to local people who wouldn’t otherwise have boat access.
We’re also very intentional about partnering with locally-owned businesses. We hire local employees. We serve local salmon from Ketchikan Sam’s. Our meals are put together by New York Cafe, a locally owned business as well.
In the future, we hope to be able to offer services to the local school to help with athletic teams’ transportation. We’re also hoping to partner with Ketchikan Indian Community to help facilitate community days for children.
What do you hope visitors experience when they come on a Whales & Lunch tour?
I want them to be able to experience Southeast Alaska in ways that it took me a while to experience. I really want them to feel like an Alaskan for a day.
Folks on our tours will get to eat salmon, see the sites, spot wildlife, touch seal fur, and sea otter fur. Something that we’re able to offer on our tour is a genuine Alaskan experience that’s based in our local knowledge and can’t be replicated by outsourced goods and labor.
Why did you decide to reach out to Spruce Root for a loan?
There were a lot of sources pointing to Spruce Root and the positive impact the organization has on the community.
We had been working with AKSBDC on developing a business plan, and when it came time to take the next steps for our business, they directed us to Spruce Root. I got in touch with Andrew Jylkka (Spruce Root’s Program Manager for Small Business), and he went over our business plan and approached the Spruce Root lending team.
Why not use a traditional bank?
Chevy and I would not have qualified for any type of business loan through traditional methods.
I’ve been fishing for the last four years as a power troller. I was just scraping by fishing, and we didn’t have the means to put a $100,000 down payment for an expensive boat and get this loan. We would not have qualified under traditional banks, even using our house as collateral. There was no way to make it work.
I probably approached 20 or 30 lenders. Spruce Root were the ones who were able to be creative and help us out.
How has working with Spruce Root supported the vision for your business?
Without Spruce Root, we would not have a business. There’s no ifs, ands, or buts about it. Spruce Root is the reason why Whales and Lunch is not just an idea.
Working with Spruce Root allowed us to buy a boat and to have working capital to get through the early season. It’s given us contacts. It’s helped us provide an accurate plan.
Being non-traditional lenders, Spruce Root was able to help us by not having to make full payments right off the bat. Deferred interest helps a lot, and they did a payment structure catered to us and our business to help us succeed.
What advice do you have for other small businesses who are considering working with Spruce Root?
It’s a team effort. Organizations like AKSBDC, Haa Yakaawu, and Spruce Root want you to be successful. Their job is to guide you through the process, but you need to do the work and the research and present the plan.
Come up with a good plan, keep good paperwork, good notes, and have realistic expectations. You’re the only person you’re going to hurt if you get a business loan and you lied or you had false expectations.
Spruce Root isn’t trying to profit off us. They’re trying to help us be successful, and with our success, they get to ride with it. And to be honest, we couldn’t have done it without them. They blew all my expectations out of the water.
What are you looking forward to most during your inaugural season?
I’m looking forward to all the new connections I get to make with other local business owners.
I get to spend time with people at one of the most memorable, positive times of their lives. I get to see their reaction when they first see a whale breach or see orcas, or something they’ve always wanted to see in person. And I get to facilitate that.
The fact I get to experience joy for a living is pretty exciting to me.
Interested in learning more about Spruce Root’s lending process? Find info about the loan services we offer here and reach out to us through our inquiry form to get in touch.