Funding Urged for Business Aid Centers

San Fernando Valley business leaders and city officials said Friday they plan to open a business assistance center in Sherman Oaks and provide funding to keep open two temporary centers that were established in the aftermath of the Northridge earthquake.

Three Los Angeles City Council members recommended Friday that the city accelerate a $1.3-million grant application to the federal government.

The money would be used to fund the centers.

“We want to make sure that the business climate in the Valley continues” to improve, said Councilman Mike Feuer, who made the recommendation along with Councilmen Hal Bernson and Richard Alarcon.

After the quake, federal funds were used to open centers in Pacoima and Northridge to help businesses rebuild and reopen.

But funding for those centers runs out Dec. 31.

Under a plan by the Valley Economic Development Center, $1.3 million will open the Sherman Oaks center and will provide funding to keep the Pacoima and Northridge offices operating for three years.

At the center, small businesses can seek financial consulting and business training, among other services.

“It’s part of our regional economic plan to develop small businesses because it’s such a critical part of our growth here,” said John Rooney, president of the Valley Economic Development Center, a consortium of Valley business groups.

The Sherman Oaks, Pacoima and Northridge business assistance centers will also provide loans using $126.5 million offered by private banks in the Valley.

Rooney said the centers are expected to help save and create up to 10,000 jobs in the next three years.