City Seeks U.S. Funds to Enact Business Plan

The Los Angeles City Council decided unanimously Tuesday to apply for a federal grant worth nearly half a million dollars to help spur business growth in the San Fernando Valley.

The city will request $467,000 from the U.S. Department of Commerce for the Economic Alliance of the San Fernando Valley, a consortium of local business groups working to promote new economic development and to continue the area’s recovery from the Northridge earthquake.

If awarded, the funds will be matched by private contributions to implement the alliance’s plan, unveiled in November, to retain local firms, attract new companies and encourage small businesses. The money will go toward hiring three full-time staff members to put the blueprint into action.

Included in the plan are initiatives for businesses to work in partnership with local schools and homeowner groups, for the development of companies in cutting-edge fields like the information superhighway and for volunteers to persuade firms to remain in the Valley.

The alliance also hopes to establish a $10-million loan fund for small businesses and provide training for entrepreneurs.

Although the Northridge earthquake served as the catalyst for the plan, John Rooney, president of the Valley Economic Development Center in Van Nuys, said the proposals are part of a long-term strategy to ensure the Valley’s economic health and vitality.

“This is not the emergency response. It’s long-term, five- to 10-year programs the business community feels need to be in place for the Valley to have a first-class economy,” Rooney said.