Skip Spotlight: Ali Chalabi and BREADBAR
Over the last two years, we've heard thousands of stories from small business owners who've been saved by pandemic relief, like the EIDL program. In our recent survey, 60% of business owners say their businesses would have gone under had it not been for the EIDL program.
In this article, we highlight the story of Ali Chalabi, co-owner of a Los Angeles-based bakery called BREADBAR. It's his story of how the pandemic impacted his business, the challenges he faced — including his struggle with the EIDL program, what Ali chose to do, and how BREADBAR is currently doing.
BREADBAR's Story
It's March 2020 and BREADBAR's co-owner, Ali Chalabi, had many reasons to feel optimistic about the business he helped build, grow, and nurture for 15+ years. With an ongoing record of double-digit growth behind him, there were plenty of reasons to smile.
BREADBAR is a Los Angeles-based bakery that provides French-influenced artisanal bread and pastries for wholesale customers. For over 15 years they have served the greater Los Angeles community, with continued growth and support.
They have scaled down their retail operations over the years — but still sell to local farmers’ markets. Due to its proximity to Los Angeles International Airport (LAX) — and the constant, passionate word-of-mouth support — BREADBAR has little need for costly marketing and advertising.
The Challenge BREADBAR Faced
When the Covid pandemic shuttered the economy, it hit airlines and airports particularly hard. As a result of the near-immediate loss of patronage, BREADBAR found itself in a very difficult position. Customers disappeared and sales plummeted. By the end of 2020, sales were down 58% from 2019.
“I’ve invested too much in this business to lose it” was Ali's immediate thought — consistent with many successful entrepreneurs' insistence on keeping their life's work afloat. But he needed cash to support his business — and he needed it sooner, not later. Additionally, he felt loyalty to his employees; many of whom had worked for the company for years, and were a long-term part of his business.
BREADBAR applied for an EIDL loan and received the maximum amount of $150,000 in July 2020, which helped stabilize operations. Fortunately, Ali also had long-term vendors willing to provide BREADBAR with 60–90-day payment terms.
By the spring of 2021, business was still down. The SBA encouraged Ali to apply for more funding. Having realized quick success with his first round of financing, he applied again — but was denied for various procedural and technical reasons.
Busy trying to keep his business afloat, Ali didn’t have the time to research the nuances of his denial. So, like many, he turned to internet searches and YouTube videos. That’s where he came across Skip's YouTube channel. Ryder Pearce, Skip’s founder and EIDL influencer, has been covering the EIDL program since its inception.
Why BREADBAR Chose Skip
While following Skip’s YouTube offerings, Ali tried to rectify the SBA denial on his own. He attempted to rectify the issues — or what he believed to be the issues – with his EIDL application and re-submitted. However, by the fall of 2021 he received yet another EIDL decline.
While his business continued to slowly improve, BREADBAR was still down from its 2019 revenue. The business needed more short-term cash.
Finally, he signed up for Skip Premium service, where he was introduced to his new concierge, Teresa Owen. “I felt an immediate bond with Ali,” said Teresa, “I wanted to diagnose the issue and find a way to get the funds that he was qualified for.”
Teresa and Ali dug in. They brought Ali’s accountant into the conversation and discovered that 2019 taxes were filed, but not digitally uploaded. The lack of a digital version of BREADBAR's 2019 taxes triggered the EIDL denial.
The Outcome
Teresa and Ali quickly resolved this and re-filed. BREADBAR was quickly rewarded with an additional $500,000 in EIDL funding in mid-January 2022 – 10 months after the SBA had suggested he could get more funding.
It’s a frustrating story but one we hear often. “A simple omission can have big repercussions” noted Owen.
By mid- to late 2022, BREADBAR expects to regain its 2019 business revenue, and Chalabi believes further growth is ahead for 2023. His reaction about working too hard to lose his business proved accurate.
Find out more about BREADBAR on their website, follow them on Instagram, or check them out on LinkedIn.
Get Help With Your Business
If you find yourself in similar shoes as Ali Chalabi, we can help. We have helped businesses collectively get over $1B in funding. Skip can help with EIDL, SBA loans, grants, or other business financing options. Get ongoing personalized help from our team. Join Skip Premium today and get 1-1 support for your business.
How Else Can Skip Help? Whether you need assistance navigating funding for your small business — like SBA loans, grants, or other financing options, or guidance with government-related services — like TSA PreCheck or DMV appointments, we’re ready to help. Become a member and skip the red tape.