California Business Incubator Grant Awards Announced; 11 Organizations Share $950,000 to Assist Small Business Growth in Golden State.

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 13, 1999--

Eleven recipients will share $950,000 in grants under the California Business Incubator Program, the California Trade and Commerce Agency announced today.

"Small Business is a key contributor to California's economy," said Trade and Commerce Agency Secretary, Lon Hatamiya. "Business incubators create an environment that helps ensure future growth in the industries of tomorrow."

Business incubators are created by non-profit economic development corporations and local government agencies. The incubators provide services such as counseling, business development seminars, access to information databases, and on-site libraries.

Grant funds range from $50,000 to $100,000 and can be used for non-recurring capital costs, operating expenses for incubators, loans and investment of patient capital to incubator tenants. The program is administered by the Office of Small Business, housed within the California Trade and Commerce Agency.

The California Business Incubation Network was created in 1998 through legislation authored by Assemblyman Wally Knox (D-Los Angeles).

Following are the award recipients:

-- San Francisco Renaissance Entrepreneurship Center ($100,000). Since 1985, the San Francisco Renaissance Entrepreneurship Center has provided services to a diverse group of small businesses in the greater Bay area. The center will use $50,000 of the grant for personnel and other operation expenses. Partnering with the Women's Technology Cluster in San Francisco, the Center will use the remaining $50,000 to make loans and equity investments to assist small firms.

-- San Joaquin County Employment and Economic Development Department ($100,000). San Joaquin County applied jointly with the Greater Stockton Chamber of Commerce. The Incubator is co-located in Stockton with the Stockton Small Business Development Center (SBDC), one of 42 state-sanctioned SBDCs. San Joaquin will use its $100,000 to make loans to small business clients of the incubator. The Greater Stockton Chamber of Commerce, which received a grant for $50,000, will use the funds for incubator personnel and other operating expenses.

-- City of Lancaster Redevelopment Agency ($150,000). Established in 1983, this is the oldest business incubator in California. Lancaster will direct $100,000 toward developing a partnership with the Los Angeles County Community Development Commission's "In-Net" program, which benefits from a federal 3:1 dollar match. Lancaster will use the additional $50,000 for incubator activities.

-- San Gabriel Valley International Business Incubator ($150,000). Located in the Northwest El Monte Redevelopment District, the newly-created incubator is designed to attract international clients with a strong import/export base. The location is designated as a Foreign Trade Zone. Grant funds will be used for equity infusions into small business clients and leveraged with loans from the greater San Gabriel Valley Community Development Corporation on a 1:5 ratio. Construction of a permanent location is expected to start in early 2000.

-- Hollywood Economic Alliance ($100,000). A new start-up, the state's first "virtual" incubator is designed to attract new companies to the Hollywood business district. Small business clients receive services via the Internet in conjunction with regularly scheduled seminars, workshops, and other events. One of the incubator's services will be access to loans capitalized by grant funds, and leveraged by loans from the Valley Economic Development Center.

-- University Business Center/Central Valley Business Incubator ($100,000). The University Business Center at Cal State University, Fresno, will administer this grant for the Central Valley Business Incubator, a non-profit corporation, which operates at the CART (Center of Advance Research and Technology). The incubator will utilize grant funds to access and capitalize loans from the Valley Small Business Development Corporation's various programs.

-- CALSTART, Alameda, ($50,000). CALSTART was organized in 1992 in Los Angeles to promote electric vehicle research and development. In July of 1996, a Northern California branch of CALSTART opened in an aircraft hanger at the Naval Air Station, Alameda. Grant funds will be made available to incubator clients.

-- Arcata Economic Development Corp., ($50,000). The Arcata Economic Development Corporation operates the Foodworks Culinary Center which is dedicated for regional specialty food processors. The incubator will utilize funds for purchase of a walk-in freezer and cooler, available to all small food producers located in the incubator. The incubator shares the building with AEDC's headquarters which operates other programs such as Humboldt Harvest and the Humboldt Woodworkers Guild.

-- Pasadena Enterprise Center, ($50,000). An incubator since 1992, the center is a general or "mixed-use" incubator in the greater Pasadena area. Home currently to 23 small businesses, the Pasadena Enterprise Center has launched 62 other small businesses, resulting in 500 new jobs.

-- City of King, ($50,000). Winner of the 1997 Award of Merit from the California Association for Economic Development, the incubator works with a small but growing cluster of businesses. The incubator will use grant funds toward additional staff and activities to promote small business in Monterey County.

-- Vermont Slauson Economic Development Corporation ($50,000). Located in South Central Los Angeles, Vermont Slauson was organized in 1981 to assist local revitalization efforts. Vermont Slauson has been involved in the development and management of a shopping center, entrepreneurial training, housing rehabilitation, and youth development. The incubator operation, known as the Business Enterprise Center, plans to open in April 1999 with plans for 30 start-up businesses.

The California Trade and Commerce Agency is the state's lead agency for business retention, corporate attraction, and job creation. It includes the Office of Small Business, which oversees the California Business Incubator Program.