CENTER AVOIDS KNIFE BUDGET CUTS TO SKIRT VALLEY BUSINESS CENTER.

Byline: Brent Hopkins Staff Writer

PACOIMA - The San Fernando Valley Financial Development Corp. won assurance from Gov. Gray Davis' office Thursday that a planned job center will be spared from state budget cuts.

For six years, Roberto Barragan, president of both the FDC and the Valley Economic Development Center, lobbied politicians to open a local office for the state-funded center that provides guaranteed loans for small firms unable to secure credit. But then the state's budget crisis presented an obstacle.

``The San Fernando Valley has never had adequate access to the program,'' Barragan said. ``It finally happened, and then eight months after we get it, it's going to close.''

But Thursday afternoon, Assemblyman Tony Cardenas, D-Mission Hills - another key figure in the center's opening - received word from Davis' office that the program would not fall victim to the budget knife. Though the loan funds will be temporarily suspended, Cardenas said, they will be returned in the new budget cycle that begins July 1.

``He's claiming to assure that the facilities will continue, and then in July he'll replenish the funds,'' Cardenas said via cell phone. ``The administration has given us their assurance that the facility won't be affected.''

Though the $8 million in loan funds won't be available until midyear, Cardenas predicted that applicants would suffer only a mild delay, at worst.

``From what I understand, as of a few hours ago, the operating dollars will not be affected between now and June 30, just the money pool,'' Cardenas said shortly after noon. ``But that will be replenished July 1. Being that this is a new facility, it will be very unlikely that someone would actually be receiving any dollars in March, because the process takes time.''

Barragan, upon learning that the project would live on, could barely curb his enthusiasm.

``If the governor backs off on his budget cuts, then we'll be able to continue operating into next year, and there will be no termination of those guaranteed loans,'' Barragan said. ``It's fantastic. Assemblyman Cardenas is in a place to make that change and serve his community, and we're very appreciative.''

With the continued support, provided by the state's Small Business Expansion Fund, entrepreneurs like Hector Galvan can rest a little easier. Galvan, owner of North Hollywood's Prime Building Supplies, needed a $300,000 loan to expand his business, but couldn't qualify without the FDC's help.

``We really need it,'' he said. ``With them guaranteeing it, it gives me a lot of leverage with banks so I can shop around and find better terms.''

If his loan is approved, he plans to purchase an additional parcel of land to serve as a truck pool and inventory center. The move, which he considers essential to his firm's survival, will infuse much-needed additional cash into his bottom line.

``When we open up at 6:30 in the morning, my rigs are all out in the yard and customers can't get in,'' he said. ``They get frustrated and go somewhere else, which really hurts us. We depend on that walk-in business, so our cash flow would really be hurt if we couldn't expand.''