SUCCESS STORIES | Mind The Gap

THE STORY OF SARAH SCALA

From Grants to Growth.

For 43-year-old Sarah Scala, going into debt wasn’t an option when she started her business, Sarah Scala Consulting. The Massachusetts company is an LGBT-certified business enterprise that provides leadership development, public speaking and leadership coaching.

Scala wanted to stay debt free, so she used her own savings and looked for opportunities elsewhere. Other than a Paycheck Protection Program loan during the Covid-19 pandemic, her only other external source of funding has been two grants from the Massachusetts Growth Capital Corporation. Those grants have helped her with digital marketing and capital expenses.

“There’s a number of wonderful associations that are really helpful if people are looking for support around funding,” said Scala, who operates the business out of her home. Bridge The Gap is one such platform that supports small businesses at any point of your journey.

THE STORY OF EMILY

Breaking Barriers and Blooming.

Emily's vision was to create a makeup line that was not only stylish but also environmentally conscious. However, banks expressed skepticism about the market viability of a sustainable makeup brand. Feeling discouraged, Emily almost shelved her dream.

Bridge the Gap connected her with a marketing expert mentor who helped her develop a targeted marketing strategy focused on eco-conscious consumers. She also participated in workshops on financial management specifically tailored to small businesses. With a revamped marketing plan and a newfound understanding of financial planning, Sarah relaunched her pitch. This time, she presented a data-driven approach, highlighting the growing demand for sustainable fashion. Bridge the Gap's network of resources also connected her with an investor passionate about supporting environmentally friendly ventures.

Sarah's dedication, coupled with the resources and guidance from Bridge the Gap, paid off. She secured the funding needed to launch her clothing line, "Threads of Change." Today, Sarah's brand is a leader in eco-conscious makeup, with a loyal customer base and growing recognition. She's a vocal advocate for women entrepreneurs and regularly participates in Bridge the Gap's events to inspire others on their business journeys.

THE STORY OF GAVIN ESCOLAR

Struggle to Success.

Gavin Escolar, owner of The Chaga Company in San Francisco, is one of those small business owners that has had troubling finding financing. The 47-year-old gay man started his business, which makes products from chaga mushrooms, in 2018 by using his savings and credit cards.

While he hasn’t been rejected for any loans he’s applied for, he has been only offered high-interest bridge loans from lenders to hold him over until a lower-interest small business loan becomes available, he said. “They’re like, ‘oh yeah, you’re pretty much approved for this particular SBA loan, but it’s going to take like around six months for you to get it. But we have this other loan that you can bridge right now, that is 29.75%,’ or whatever exuberant cost,” Escolar said.

Right now he’s using loans from Square and PayPal and is hoping to figure out his next step so that he can pay down his credit card debt, buy inventory and do marketing. Escolar feels like the community needs more education on how to get the right financing. “I’m only getting the higher [interest loans] because I feel like I don’t have established business credit,” Escolar said. “I’m fluctuating between my business credit and my personal credit. I don’t even know where to start on how to build a business credit.”