American Recovery and Reinvestment Act Funds Reach VEDC to Aid Small Businesses

For Immediate Release Contact: Lisa Winkle, VEDC (818) 907-9977 lwinkle@vedc.org American Recovery and Reinvestment Act Funds Reach VEDC to Aid Small Businesses The U.S. Small Business Administration grants nearly $300,000 of ARRA funds to VEDC Van Nuys, CA – Valley Economic Development Center (VEDC) recently received nearly $300,000 from the American Recovery and Reinvestment Act through the U.S. Small Business Administration to support the SBA’s Microloan Program. President Obama and Congress through the Recovery Act recognize that small business lending programs are the key to helping jump-start America’s economic recovery. In order small business lending programs are essential to helping jump-start America’s economic recovery. The Recovery Act is a comprehensive plan to grow our economy by encouraging job creation, restarting lending and investing in small businesses. “The SBA Microloan program provides an economic impact by allowing entrepreneurs the access to capital that they cannot get from traditional lenders; it provides the support that is critical to the success of their businesses. This equals jobs,” says VEDC President Roberto Barragan. “Last year VEDC’s SBA Microloan program helped to create 77 new businesses, contributing to 319 new jobs and the retention of 315 jobs.” The SBA Microloan has been offered by VEDC since 1998 and is one of the most fundamental products offered to small business owners. With loan amounts from $1,000 to $35,000, the Microloan is available to either start-up or existing businesses and can be used for working capital, storefront improvement, relocation or equipment purchase. The Microloan Program provides financing not available by conventional lending. Typically, banks do not provide loans under $50,000 to entrepreneurs with FICO scores below 640. Therefore, small business owners who have had credit issues in the past have limited resources available to them. The Microloan provides necessary capital that is not available in traditional financial institutions. Alberto G. Alvarado, Los Angeles SBA District Director, lavished praise on VEDC’s accomplishments stating that, “Throughout its history VEDC has been a standout and leading strategic partner to our area’s small business entrepreneurs. SBA programs and services have reached more deserving small businesses and assisted a wider spectrum of residents because of VEDC’s determination to improve our community.” VEDC's team of loan consultants is available to provide you with lending guidance and loan packaging services at little or no cost. For more information on how VEDC can help your business get the money it needs, call 818-907-9977 or visit www.vedc.org. ### VEDC is L.A.’s largest non-profit business development corporation seeking for over 30 years to create and sustain jobs and businesses in our communities by providing high- quality economic development services.