Back in the mid-1970s, Van Nuys Boulevard once a flourishing commercial corridor was in grim shape. Amid a bumpy economy, mom-and-pop and other small businesses were struggling. Many closed. The Van Nuys Chamber of Commerce decided something had to be done, and in 1976 they created Vitalize Van Nuys, a committee of business owners that came together to hash out ways to improve the business climate. One of their first events was a series of workshops on financing. The seminars brought in loan experts, who helped business owners understand lending. The events became popular, and participating businesses started seeing money. Slowly, commerce started to come back and Van Nuys Boulevard began to turn around. “They did a lot of loan programs (and) helped a lot of companies get off the ground,” said Nancy Hoffman Vanyek, a member of the Van Nuys Chamber of Commerce, now called the Mid Valley Chamber of Commerce. “It was doing all sorts of different things to help revitalize Van Nuys.” Three decades later, Vitalize Van Nuys has turned from a modest association formed to rejuvenate a single street to one of the region’s largest economic development groups, now called the Valley Economic Development Center. This November marks the 30th year the VEDC has been helping small- and mid-size businesses thrive through loan programs, a mix of access-to-capital seminars, loan workshops and entrepreneurial training sessions. With a $4 million annual budget and 45 employees, the nonprofit organizes dozens of events and consulting programs in locations from Santa Clarita to Ventura County to downtown L.A. In 2005 alone, the VEDC helped 11,500 businesses and residents that created 327 new businesses and 601 new jobs. Mel Kohn, an Encino accountant who serves as VEDC chairman, said those numbers prove that there is a strong need for smart, community-led groups that help small business locate resources. “In essence, we’re a conduit,” he said. “Part of our job is letting these people know about what’s available to them.” VEDC President Roberto Barragan agrees. “We’re the only economic development organization in the San Fernando Valley committed to business growth,” he said. “We have 70,000 members.” A unique path Early on, Vitalize Van Nuys relied almost entirely on seminars that taught participants everything from where to find overlooked funding avenues to how to pay for commercial storefront restorations. The one thread that linked the seminars was that each looked at how successful businesses operated. Eventually, that idea evolved into asking prosperous business owners to come and talk about their techniques. Hoffman Vanyek remembers one lineup in the 1980s that included Kinko’s, founder Paul Orfalea, future L.A. Mayor Richard Riordan and Trader Joe’s founder Joe Coulombe. None was quite famous yet, but they all had something in common a spark that showed they would do well someday, Hoffman Vanyek said. “You look at some of these companies, where they are now, they were talking to these small businesses about how to succeed back then,” she said. By 1989, the group took a first step to expand outside the central Valley. It adopted a new moniker, the Valley Economic Development Center. In 1991, it opened the first Small Business Development Center, a one-stop-shop for business owners to come and learn about tax breaks, management training and how to secure loans. The VEDC would eventually add similar centers in Ventura, Glendale, Santa Barbara, Santa Monica and central L.A. By 2000, nearly 4,000 businesses and businesspeople took part in 101 business education classes, along with more than 10,000 hours of business consulting. Nearly $11 million in financing was awarded. Kohn said the lending programs are the VEDC’s most important resources because loans are difficult for some business owners to secure. “They want to know the vehicle to get the money because it’s so tough in the areas that aren’t as wealthy. They need the knowledge. Having access to capital is a big step,” he said. By 1994, the VEDC’s budget topped $1 million and the organization was supporting hundreds of small Valley businesses each year. That number would swell to 10,000 in the aftermath of the 1994 Northridge earthquake. Within 30 days and with just 12 employees, the VEDC organized 55 workshops. The VEDC helped secure well over $100 million in loans. Later years brought more programs, including the Pacoima Workforce Development Initiative and the Entrepreneurial Training Program. A new board Despite the accolades, the VEDC has not been without controversy. In 1999, questions arose about whether President John Rooney had accepted consulting fees on the job. Riordan, then mayor, ordered an audit, which found that Rooney had accepted $5,700 in fees for helping a sign manufacturer secure $1.2 million from a venture capitalist. However, because his contract did not indicate that accepting fees was improper, the audit found no wrongdoing by Rooney. Regardless, the pressure forced Rooney to resign, along with chairman David Honda. The controversy caused the VEDC to shift gears, said board member Marvin Selter, who headed the transition after Rooney. They eventually hired Barragan, who had headed the South Los Angeles Community Financial Resource Center in the wake of the 1992 riots. Things began to change, Selter said. “It was under Roberto and a rather aggressive board, that we got more involved,” he said. That meant expanding even more, especially outside of the Valley. Today, the VEDC operates nine locations, including the Women’s Business Center in Santa Clarita, a market and credit union in Pacoima and the Capital Access Center in downtown L.A. Its Historic Downtown L.A. Retail Project helps link businesses with vacant storefronts in downtown Los Angeles; the Northeast Los Angeles Business Assistance Center serves areas like Mount Washington and Atwater Village; and the San Fernando Learning Center assists owners in the city of San Fernando. Kohn said the rapid expansion is due to the 13-member board, which he called “human assets.” Each one has a different take, which results in lots of new ideas, he said. “The board members are very diverse and their talents are diverse,” he said. “We’ve really gone out there more. It isn’t just lending, its training, it’s workforce development.” Barragan also credited the board with pushing for change. “We’re a board with a bigger vision,” he said. “Our organization has gone through a transformation over the past six years.” That transformation will hopefully continue over the next 30 years, Barragan said. “We’re going forward with more access to capital, loaning a bigger variety of financial services,” he said. “It will benefit the business quarter.” Selter hopes other business developments will notice that the VEDC model is working. “I think we’re going to be emulated through other development centers across the county,” he said. “The backbone of this country is small business.”
