The Valley Economic Development Center on Monday said its chief executive has left, the third person to vacate that post in less than two years.
A temporary consultant has been brought on, the lender said. A transition team has been appointed, and its year-end financial statement will be delayed.
Ray Vadalma, who also served as chief credit officer for the Sherman Oaks small business lender, left effective Aug. 1, according to a letter primarily distributed to VEDC’s financial and bank partners and funders.
Gilbert Partida, a business attorney, has been brought on as a business consultant for the next 60 days. Additionally, the center has formed a transition committee composed of board members who will lead the transition efforts with Partida and the senior staff of the organization.
Vadalma became chief executive following the departure a year ago of Quentin Strode, who had been in the position for about four months. Strode had replaced Roberto Barragan, who had served as chief executive for 17 years and left in October 2016. Other top executives had also left the lender in that time.
The VEDC has found itself in tough financial straits in the past couple of years as it laid off staff and some banks stopped working with the organization.
The letter stated that while the VEDC’s assistance programs continue to flourish, its lending programs, loan production and legacy investments have experienced challenges that hurt its financial performance.
“While we’re confident that our financial performance will, and must improve, it will take more time and support from our dedicated partners, than originally anticipated to see associated results,” the letter said.
During the transition period, the fiscal year end audited financial statements have been delayed until Aug. 31. The center’s staff and members of the audit committee continue to work to ensure the financial statement is released as early as possible, the letter stated.