Transcript Document

A One Stop Shop for Small
Business
Roberto E. Barragan
President, VEDC, Inc.
Presentation to NALCAB
www.vedc.org
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Valley Economic Development
Center
Multi-ethnic CDC
serving LA, Ventura, and
Orange counties
Will serve over 6,000 businesses in 2007
San Fernando Valley based non-profit
Technical Assistance Provider for 31 years
Largest Business Development Org. in Los
Angeles
7 offices stretching from the Valley to Downtown
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One Stop Shop for Small
Business
 Womens
Business Center/Microenterprise Training
 Glendale Capital Access Center
 Los Angeles Business Development Corporation
 Downtown Historic Core Retail Project
 Pan City Retail Project
 Retail and Economic Development
 San Fernando Valley Financial Development Corporation
 Pacoima/Credit Union
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Womens Business Center/SFV
Microenterprise Program
Serving 4,000 businesses annually
One
on One Consulting: Marketing, Accounting,
Strategic Planning
100 Workshops annually: current issues, I.e.
workers comp., family leave
Startup and Business Plan Assistance
Microenterprise/Entrepreneur training to fledging
and startup business; Spanish language training
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Glendale Capital Access Center:
Serves 1,000 businesses annually
Originates over
400 SBA loans annually in
Downtown, Glendale and Main Office
7(a), Community Express, 504
BofA SBA Express
Innovative Bank SOHO
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Bank Partners
Partnering with
numerous commercial banks,
including Wells Fargo, Wachovia, Bank of
America, Citibank, HSBC, Wamu, City National
and Cathay Bank to provide business and
community development lending,
Established referral and access to capital system
Objective is to increase business access to
capital
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Los Angeles Business
Development Corporation
 State
Licensed Lender and FEDERAL Certified
Development Financial Institution
 Revolving Loan Fund: $6.5M Loan Fund
 BofA/SBA Microloans: 75 loans annually: $2,000,000
 Wells Fargo Pacoima Microloan Program: $200,000
 Cal National Downtown LA Microloan Program:$200,000
 GE Money Womens Microloan Program:$500,000
 Portfolio Management and Debt Advisory
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Downtown Historic Core Retail
Project:
40
new businesses,
200 jobs created
$6 million in financing
Unique model of 2nd tier retail in hottest RE
market in So Cal
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Panorama City Retail Project
Public Markets Assistance: Plaza del
Valle
New
Pan City/CRA program
Retail attraction, development and TA program
10 businesses, 25 jobs created in 1st year
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Economic Development
 Pacoima
 14
years, 800 businesses, 2,000 jobs
 Retail Revitalization: $2M in capital investment
 Volunteerism:
E file tax returns, 1,000, $2,000,000 in
refunds
 Financial Literacy: Pacoima Family Development
Initiative
 Job
Placement/Career Coaches: 150 FT/annually
 Events: Xmas Job Fair, Adopt A Family
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Economic Development (cont)
San
Fernando Learning Center (Union Bank)
 Union
Bank sponsored Technology Center: computer
training
 1,000 visitors in 2006
Pacoima
Equity Fund
 $700,000
investment in mid tech company to create 70
jobs
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Affiliates: San Fernando Valley
Financial Development
Corporation:
One of 11 FDCs in State of CA providing guarantees
to bank loans and lines of credit
 Guarantee authority of $8 million against $2 million cash
reserve
 $30M in loans guaranteed to date, 3,000 jobs saved or
created
 14 banks are partners
 Projected to do SBA 504 lending by end of of 2007

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Affiliates: Pacoima Development
Federal Credit Union
Credit
Union opened for business in September
2005
Low Income Designation
$500, 000 capital raised
$2.5 million in assets, 605 members, $550,000 in
used car loans
Just approved to do SBA lending
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Opportunities
Combine
entrepreneurial underwriting with
technical assistance
Strong SBA and SBA District Office relationship
Strong credit relationship with banks
Strong job creation requirements
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Financial Support
Federal:
SBA: 20%
City of Los Angeles/CDBG: 25%
Banks, corporations: 22%
Earned Income: 24%
Foundations, other: 9%
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The Future for Communities
 Access to
Capital remains the biggest challenge
to the growth of diverse business, the creation of
local jobs and the revitalization of communities
Local responses to Credit works
Technical Assistance goes hand in hand with
Capital
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