New Alliance Hopes to Spur Economic Growth in the Valley

A group of local business leaders has put up $258,000 in seed money to form the Economic Alliance of the San Fernando Valley, a consortium of volunteers and local business groups that hopes to spur economic growth in the Valley.

On Thursday, Mayor Richard Riordan is expected to announce a grant from the U.S. Department of Commerce’s economic development administration to help finance the Valley alliance.

The alliance is a collaboration of the United Chambers of Commerce, the Valley Industry and Commerce Assn., the Valley Economic Development Center and the California Industrial Leadership Council.

A study by the alliance shows that while the entertainment industry’s employment in the Valley has grown 44% since 1987, jobs in the aerospace industry have fallen 25%. The group concludes that the Valley’s future economic growth depends largely on nurturing small businesses, noting that 95% of all businesses in the Valley employ fewer than 50 people.

Part of the alliance’s plan is to set up a small-business assistance center, giving advice on exports and technology, and trying to draw businesses to empty commercial sites. It also hopes to set up a revolving loan fund for small businesses and hopes to receive $10 million from the Department of Commerce to help make loans in the area.

Another key goal is to retain and attract businesses to the Valley. Once money is raised by the alliance, it plans to hire a full-time coordinator who will target those companies thinking of leaving the area, and act as a contact to various agencies to try and keep those businesses here.

The alliance plans to create teams to oversee business and education partnerships in hopes of improving the relevance of schooling in high schools and local colleges to the needs of the workplace.