Printer Friendly

RLA COMMUNITY LENDING CORP. COMMITS FIRST THREE LOANS FROM BUSINESS EXPANSION LOAN FUND AND ANNOUNCES PROGRAM CONTRIBUTORS

 LOS ANGELES, Oct. 20 /PRNewswire/ -- A garment manufacturer who is expanding her business, a waste management firm owner who is hoping to provide 10 new jobs for the East Los Angeles community, and an expanding automobile transmission remanufacturing firm will be the first three loan recipients of a new program that will significantly impact small businesses throughout Los Angeles County. The RLA Community Lending Corp. (RLACLC) today committed loans up to $630,000 to Clotee McAfee, owner of Deljah Simone Inc., Sam Perdomo, owner of Perdomo & Sons Inc. waste management company, and M. Terie Salinas, owner of Superior Powertrain, through its Business Expansion Loan Fund. The RLACLC Business Expansion Loan Fund, which will assist county residents interested in rebuilding or expanding their businesses, will supply a source of debt capital to inner-city small businesses in greater Los Angeles.
 In addition to the loan commitment, the RLA Community Lending Corp. announced, for the first time, the public/private entities that have provided the initial capital for the Business Expansion Loan Fund. A $2 million contribution from the Southern California Edison Co., a $2 million commitment from the Department of Housing and Urban Development, a $750,000 grant from ARCO, a $500,000 grant from the Southern California Gas Co., and a $500,000 grant from the Lincy Foundation has provided the initial $5.75 million for the loan fund's capitalization goal of $20 million.
 "The Business Expansion Loan Fund is a novel approach toward creating lending opportunities for inner-city communities. We have taken the resources of the private and public sector and created a direct lending mechanism to small businesses which have had little access to bank financing. In addition, we are not subject to the regulatory pressures that banks must adhere to, so the Business Expansion Loan Fund is more flexible in its financing criteria," said Barry Sanders, RLACLC chair.
 The Business Expansion Loan Fund will make loans of $25,000 to $250,000 to expand existing small businesses and assist some new small businesses in RLA's neglected areas, defined as any neighborhood in Los Angeles County where 20 percent or more of the population lives at or below the federal poverty level. Loans will be based on the merit of individual businesses. They will carry interest at normal bank rates and for terms of one to five years.
 "There are currently 55,000 small businesses in the neglected areas of Los Angeles County. Many are seeking loans to expand their businesses, attain profitability, and create new jobs. The Business Expansion Loan Fund plays a vital role in filling the void in the availability of lending capital for small business in this county," said Paul Martinez, RLACLC chief executive officer. "By concentrating on small businesses that other lending institutions view as unbankable, we can directly service those entrepreneurs who are the greatest source of economic and job opportunities for neglected communities in Los Angeles County."
 McAfee, who will be receiving a $230,000 loan, is the owner and project director of an African-American-owned contract sewing company producing high-quality apparel. Deljah Simone Inc. currently employs 20 workers and is in the process of introducing new production technologies, expanding the scale and scope of its operations and sales, as well as providing extensive worker training and skill upgrading programs. Deljah Simone Inc., which is currently creating a state-of-the-art garment manufacturing facility in South Central Los Angeles, is also developing a customized training program which hopes to improve apparel manufacturing skills among displaced workers. The expansion is expected to result in a four-fold increase in contracts, revenues, and 20 new jobs.
 Perdomo, who will be receiving a loan package of $150,000 and is requesting a loan of an additional $100,000, manages Perdomo & Sons, a waste management company that services commercial, residential, governmental, and industrial concerns in Los Angeles and surrounding communities. Since its modest beginning in 1948 as a one-truck operation, the company now operates from a two-acre facility in East Los Angeles and employs 40 persons. The company will hire 10 additional persons to service an expanding business with this loan.
 Superior Powertrain is a family-owned business that specializes in remanufacturing transmissions for fleet vehicle operators such Los Angeles County. The $150,000 loan from the Business Expansion Loan Fund will enable this Latino-owned firm to bring in new equipment and inventory to better compete for lucrative fleet maintenance business in Southern California with major companies.
 Southern California Edison, the largest corporate contributor to the loan fund committed the $2 million to the RLA Business Expansion Loan Fund as part of a $35 million pledge for community renewal following last year's civil unrest.
 "Southern California Edison is pleased to support RLA's program to nuture and develop small businesses," said Edison Vice President for Regional Leadership J. Michael Mendez. "We are committed as a company to helping Southern California prosper as a great place to live and do business. As such, we have been actively involved in programs to retain and expand businesses and the jobs they create in Southern California. RLA's program fits squarely within this strategy. Small business has been a primary source of job growth in the United States, and these businesses are also the largest employers in the area targeted for these loans."
 The Business Expansion Loan Fund opened for business in August and is operating out of a 2,500-square-foot office, donated by First Interstate Bank, at 1055 W. Wilshire Blvd., Suite 1120, Los Angeles, 90017. Persons interested in more information regarding the loan fund should call 213-580-6300.
 -0- 10/20/93
 /NOTE TO EDITORS: For additional information regarding loan recipients, contact Vallee Bunting at Rebuild L.A., 213-312-1858./
 /CONTACT: Vallee Bunting of RLA, 213-312-1858/


CO: RLA Community Lending Corp. ST: California IN: FIN SU:

NY-LS -- LA045 -- 4837 10/20/93 18:01 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 20, 1993
Words:968
Previous Article:AVON LAUNCHES MULTI-YEAR BREAST CANCER AWARENESS CRUSADE IN SOUTH FLORIDA
Next Article:TRILOGY ROARS INTO MGM/UA DEN
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters