1 A One Stop Shop for Small Business Roberto E. Barragan President, VEDC, Inc. Presentation to NALCAB

2 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

3 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

4 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

5 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

6 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

7 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

8 Downtown Historic Core Retail Project:  40 new businesses,  200 jobs created  $6 million in financing  Unique model of 2 nd tier retail in hottest RE market in So Cal

9 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

10 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

11 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

12 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

13 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

14 Opportunities  Combine entrepreneurial underwriting with technical assistance  Strong SBA and SBA District Office relationship  Strong credit relationship with banks  Strong job creation requirements

15 Financial Support  Federal: SBA: 20%  City of Los Angeles/CDBG: 25%  Banks, corporations: 22%  Earned Income: 24%  Foundations, other: 9%

16 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