Press Release | City of San Diego

City Invests $200,000 in Woman Owned Software Firm
Regional Seed Capital Fund Assists Promising Small Businesses; Money Still Available

SAN DIEGO – At a point in the economic cycle when private venture and “angel” capital has dropped off significantly, the City of San Diego, with partner agencies and area banks, today celebrated the investment of $200,000 in a San Diego-based software developer. The announcement marks the latest investment of the City-managed EmTek Fund, which assists the future growth of promising local small businesses and technology entrepreneurs. Officials also announced that more funding is available to San Diego County businesses through this and other fund programs.

The recipient, A. L. Wizard, provides comprehensive, needs-based information management systems to assisted living and resident care communities as an easy-to-use software solution. Founder and President/CEO Rose Lochmann, a registered nurse and former assisted living facility administrator, said the EmTek investment will support broader marketing of the Resident Services Manager appraisal tool, the firm’s flagship product. With more than 20 years of health care experience as an educator, administrator and consultant, Lochmann recognized a need among assisted living facilities to more precisely identify the service requirements of each resident. Lochmann added, “this capital injection will also enable us to respond aggressively to the growing demand for additional products among our existing customers.”

The EmTek Fund is a public revolving loan fund that participates alongside private equity investors to provide angel-stage capital to promising San Diego County entrepreneurs. The EmTek Fund particularly targets smaller growth businesses in under-served communities and historically disadvantaged and women-owned businesses within San Diego County.

"We're delighted that A. L. Wizard, a worthy company addressing a pressing social need in a growing market, is also EmTek’s first loan to a woman entrepreneur," said Scott Peters, First District San Diego City Councilmember.

The City launched the EmTek Fund in 1995 with a federal defense conversion-matching grant in order to accelerate technology commercialization in the region and to help address the acute need for early-stage investment capital facing smaller entrepreneurs. With funding from the City of San Diego, the federal Economic Development Administration, the North American Development Bank, the County of San Diego and a consortium of area banks, EmTek provides patient, flexible working capital in amounts of $50,000 to $250,000. Loans are for terms up to five years, at modestly below-market interest rates with participation features that enable EmTek to share in firm’s success. Proceeds from the loans are invested back into the EmTek Fund, allowing the City to offer this resource to more local businesses.

"A. L. Wizard provides additional evidence that San Diego’s irrepressible entrepreneurial spirit is alive and well," said Hank Cunningham, director of the City’s Community and Economic Development Department. "EmTek’s funding will enable them to keep growing despite the current challenges that face smaller entrepreneurs seeking to raise outside equity capital."

A. L. Wizard is one of thirteen smaller growth companies located throughout San Diego County to be funded by EmTek since program inception. As of its most recent fiscal quarter, EmTek's capitalization has grown to approximately $2.8 million: $1.3 million in outstanding loans and loan commitments including the A. L. Wizard loan, and $1.5 million in fund equity. Thus, EmTek has capital available to invest in order to support other high-quality entrepreneurial companies.

The City's Community and Economic Development Department administers the EmTek Fund with assistance from the Jacobs Center for Nonprofit Innovation and a volunteer advisory board. For more information on the EmTek Fund and other City of San Diego business assistance programs, visit the City’s web site at www.sandiego.gov or call the Community and Economic Development Department at (619) 533-4233.

With an emphasis on the City’s urban core neighborhoods and low and moderate income residents, the Community and Economic Development Department strives to improve the quality of life and ensure a healthy economy in San Diego through job development, business development, neighborhood revitalization, public improvements, redevelopment, social services, and revenue enhancement.

Community & Economic Development