Microbusinesses Across the Country Poised to Lead Economic Recovery
LOS ANGELES--(Business Wire)--
The California Association for Microenterprise Opportunity (CAMEO) today
announced that Merrill Lynch has made a capital investment of $1 Million in the
Valley Economic Development Corporation (VEDC) to stimulate microbusiness
expansion and job creation in the Los Angeles area, hard hit by foreclosures and
dried up bank lending.
"VEDC is extremely proud to partner with Merrill Lynch to address the credit
crunch facing microbusinesses," said Roberto Barragan, Executive Director of
VEDC. "We have seen a quadrupling of demand for assistance that is only limited
by available loan capital. Merrill Lynch`s investment will allow us to continue
to make loans to microbusinesses and other entrepreneurs well into 2009,
creating approximately 300 jobs and helping to energize California`s economy."
VEDC is a non-profit microenterprise development agency that helps create and
sustain jobs by providing consulting, training and financing to local
microbusinesses - businesses started with less than $35,000 and five or fewer
employees.
The capital investment in VEDC was initially proposed by CAMEO, the state`s
leading association of Micro Enterprise development organizations.
"Microbusinesses are proven job creators," said Claudia Viek, CEO of CAMEO.
"Banks and the federal government should follow Merrill Lynch`s lead and make
microbusinesses a priority in their efforts to get capital out to a
credit-starved economy."
Viek said that a coordinated effort to support microbusiness creation will lead
the American economy more rapidly out of recession. She detailed figures that
show microbusinesses are the lifeblood of the economy.
More than 4.5 million new jobs were created in the United States by
microenterprises between 2000 and 2005. On average, microenterprises are
responsible for 900,000 new jobs created per year.
There are an estimated 24 million microenterprises in America today,
representing 18% of all private employment in the country. More than 87% of all
businesses in the United States today are microenterprises.
"CAMEO and Merrill Lynch have taken a bold step to make financing available to
microbusinesses throughout Southern California," Barragan said. Their commitment
to microbusiness in California is a model for state and federal decision-makers
struggling with policies to stimulate the economy."
for CAMEO
Claudia Viek, 415-305-5964
cviek@microbiz.org
or
Mark Capitolo, 916-267-8894
mark@capitolo.net
Copyright Business Wire 2009
