THE WHITE HOUSE
Office of the Vice President
VICE PRESIDENT ANNOUNCES $4.5 MILLION
IN NEW LOANS
TO 11 SUPPLEMENTAL EMPOWERMENT
Gore Hails Progress of LA Community Development Bank
LOS ANGELES -- Vice President Al Gore today (10/16) announced that 11 local business owners will receive $4.5 million in loans from the Los Angeles Community Development Bank (LACDB) to help expand business opportunities and job growth in the region. The money is expected to create more than 130 new jobs in the Los Angeles Supplemental Empowerment Zone.
President Clinton and I are committed to revitalizing our nation's most distressed communities, the Vice President said during a visit to Kids on the Move, a start-up minority-owned transportation company in the Los Angeles Supplemental Empowerment Zone and one of the group of 11 businesses receiving a loan today. These loans will start or expand small businesses, open opportunities, nurture hope, and build the local economy. The quickest path from poverty to prosperity comes through capital and the other community development tools that we're bringing here to South Central Los Angeles.
The Vice President chairs the Community Empowerment Board, which oversees various initiatives designed to bring together distressed communities to develop plans for revitalization. As part of that nationwide effort, the South Central Los Angeles area had been designated a Supplemental Empowerment Zone eligible to receive special assistance from the federal government. In 1995, the LACDB was created as a partnership between the city and county of Los Angeles and the Department of Housing and Urban Development (HUD) to help meet the needs of business owners in the South Central Los Angeles region. The LACDB's mission is to promote investment opportunities and create sustainable jobs in the Los Angeles Supplemental Empowerment Zone.
The loans announced by the Vice President today total $4.5 million and will create approximately 132 jobs in the area. Since its creation, the LACDB has approved a total of $42.4 million in loans, creating more than 12,000 new jobs in the area.
During his tour of Kids on the Move, the Vice President met with workers and bus driver trainees -- many of whom are former at-risk youth. Through job training and steady employment, these young people are now contributing members of the community. Kids on the Move, launched this year to transport kids to school in the Los Angeles Unified School district, employs nearly 100 people.
It's creative enterprises such as Kids on the Move that justify the faith built into our community empowerment agenda for America's cities -- an agenda that is community-based, community-driven, and nationally-empowered, the Vice President said.
After touring the job site, the Vice President held an informal town hall meeting with representatives from Kids on the Move, other LACDB loan recipients, and community leaders. He congratulated them for their commitment to keeping their businesses in the Supplemental Empowerment Zone, and listened to feedback on how to create more investment opportunities and sustainable jobs.
We are proud of your commitment to this neighborhood, the Vice President said. Your diligence will go a long way toward revitalizing the heart of this great city. The Vice President also recognized private banks and intermediaries that have partnered in the inner-city revitalization effort.
The loan recipients announced today (along with the loan amount and the estimated number of jobs the loan will create):
Kids on the Move: $750,000 -- This start-up minority owned busing company will create 21 jobs and provide bus transportation for the Los Angeles Unified School District;
Foothill Auto Electric, Inc.: $1,000,000 -- Located in Pacoima, this re-manufacturer of auto alternators, generators starters and C.V. drive shafts is creating 29 new jobs, purchasing equipment, and generating working capital and funds to expand and grow;
Value Produce: $984,000 -- This fruit and vegetable distribution company will be creating 28 new jobs and purchasing land and equipment for the company's new operating facility in the City Target Area;
Quick N' Split: $380,000 -- This minority, woman owned local fast food chain will use the funds to purchase two additional stores and for build out of additional sites located in the Supplemental Zone, and create 11 jobs;
Sinclair Trading, Inc: $250,000 -- This minority-owned food wholesaler will purchase a forklift and truck, establish working capital and create 7 jobs;
American Fleet Service: $25,000 -- This minority-owned company repairs trucks, busses, and vehicular and industrial engines. The microloan will be used for working capital, spare parts, repair of a service truck and job creation; and will create an additional job;
Match Point: $25,000 -- This company designs and manufactures women's dresses. Proceeds from the loan will be used for purchasing equipment, inventory and job creation; and will create an additional job;
Grace Jewelry: $19,000 -- This wholesale jewelry company will use the loan to purchase manufacturing equipment, tools, inventory and create an additional job;
Wheel to Reel Trucking: $16,000 -- A microloan to a transportation and hauling service that will use the loan to purchase needed equipment, and will create an additional job;
Image Management: $265,000 -- A source document micrographic and imaging company that will use the loan to purchase a document imaging system and for payroll expenses, and will create 8 jobs;
Performigence: $825,015 loan -- A software and training company that will use the loan to start-up the business and for other expenses, and will create 24 jobs.