Businesses Learn of Empowerment Zone

A group of local entrepreneurs met with U.S. Rep. Howard Berman (D-Panorama City) and the head of the Los Angeles Community Development Bank Wednesday to discuss business opportunities in the Pacoima Empowerment Zone.

About 25 business owners, prospective business owners and economic development specialists listened as C. Robert Kemp, CEO of the Community Development Bank, explained the eligibility requirements for a range of financial incentives available to businesses operating in or near the zone.

Empowerment zones were created by the Clinton administration in 1994 to spur economic development in blighted areas through a combination of tax breaks, grants and social programs. A 1.9-square-mile area of Pacoima is included within the Los Angeles zone.

Many people attending did not know whether their businesses qualified for assistance.

“What happens if you qualify and you get a loan and then three months later you don’t qualify? Do you have to give the money back?� asked Sheldon Krechman, chairman of Recreation World, which is building a $2.5-million ice- and roller-skating complex in Panorama City, outside the empowerment zone.

Krechman’s question was typical of the confusion surrounding the complex set of rules that govern the program. A business located outside the zone can receive benefits if more than half its employees live within the zone, according to program guidelines.

“We wanted to find out where do we start, what can we do?� said Cathy Aquino, who wants to start a dental laboratory business. “This gives us hope, because we know that there is some help available.�

Berman, who sponsored the meeting at the Pacoima Senior Citizens Center, said he was pleased with its outcome.

“Here’s a group of people hungry to do things in the northeast Valley,� Berman said.

“It means more employment and improvement for the community.�

For loan applications or for more information about the Pacoima Empowerment Zone, call Berman’s office at (818) 891-0543.