Transcript Document
A One Stop Shop for Small Business Roberto E. Barragan President, VEDC, Inc. Presentation to NALCAB www.vedc.org 1 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 2 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 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 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 12 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 13 Opportunities Combine entrepreneurial underwriting with technical assistance Strong SBA and SBA District Office relationship Strong credit relationship with banks Strong job creation requirements 14 Financial Support Federal: SBA: 20% City of Los Angeles/CDBG: 25% Banks, corporations: 22% Earned Income: 24% Foundations, other: 9% 15 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 16