personal guarantees. >> the same. 20% ownership in the company. [inaudible] >> [inaudible] >> i heard something about sba guaranteed loans. maybe i missed something. does that have to do with the sba guaranteeing the entity? >> the question on the sba guaranteeing a entity as the order of the business, whether it is a corporation or partnership, for any small business lending, you should expect to be guaranteeing that long personally. as a small-business owner, from a lender's point of view, we want to see that you are as

invested in the business as you are asking the bank to be. the idea that non recourse loans, the way you describe it, loans that you get without having yourself personally liable is not the way it works. you should assume you will guarantee the loan regardless of the structure of your business. the good news, though, for businesses like you are describing, internet business, is that the capital requirements for that type of business is generally small. you are able to get yourself further along and share in revenues with a smaller amount of credit need. that is where we see a lot of businesses and personal service or internet business get started, and generate revenues and be able to show growth without needing any capital,

like a brick and mortar business might. >> my name is terry said. i have a retail business in san francisco for 22 years. i have a 5 04 -- 504 loan. it took me three years to get. we need more capital. i tried to get a line of credit from wells capital. i was decline. where does someone like myself go? i have a loan, i need additional funding. >> did you try through the sba? >> i already have an sba loan. i went to wells fargo for a line of credit and they would not give me one. >> i can speak to you about it. when we look at funds that are needed, the biggest thing we look at our cash flow.

i can address that with you. unless there is an issue, at that point -- [inaudible] >> let's talk, ok. >> i have a couple of more questions. i know that the panelists have agreed to stay after for those who have specific questions. i do have one question for wells fargo. what are the typical rules for applying for sba loan of less than $50,000? how much money do we need to have in your bank to apply for a loan? >> i am on the smaller side of the bank. i am a transaction guy. i do not technically require one to have an account to do a loan

with. what i look for, i generally start at 100,000 and up. when it is a requirement of 50,000 or less, i tend to call of the micro guys to help me out. that is right in their box. for us, the capacity for us to do the smaller side is not there as much as it is for them. on getting a loan through my side of the bank, i do not require an account to do that. we would like to have it, but i do not require it. >> last question for the opportunity fund and a critic representative. are you a cdfi? is san francisco and s.p.a. in

support of cdfi's being established in san francisco? >> yes, we are. we were founded in 1999 with a small business loan. that is how we started our tenderloin office. >> opportunity fund is a certified cdfi, so we are providing a benefit to low and moderate-income communities. he is the city establishing support for new cdfi's? >> mark wanted to address that, in support of cdfi's in the city. >> we have a wealth of partners in the city.

s.p.a. is just now rolling out a program for r -- will be the case by the summer. let me get one last point and on the question about relationships to lenders. the question was, do have to have an account with a bank in order to get a loan? may answer is no, but the real answer to it is certainly want to do that. one of the things we see as an important thing for you, as a small-business person to establish a relationship with a lender on a variety of levels before you look for funding. part of that is opening an account with them, letting a lender know about your business, understand your business, talk to them as you are growing your business. when the economy is strong, all lenders are shopping for transactions. in times are tough on credit,

you want to rely on those deeper liberation ships with your lender. you want to develop a relationship with a lender. it is the case where you want to open up an account, while to have another bank services that you want to have a relationship with your lender with it because when you go to them for any loan requests, you want them to know about your business and feel like they are a partner of yours, not just that you are shopping them. if you are shopping, you are just looking for the best deal from them, rather than a long- term relationship. >> i want to thank everyone for coming. hopefully, you have all signed up for our updates. we are going to be hosting these on a regular basis. the next two coming up will focus on becoming a government contractor, how your small business can partner with the government. the next one will also be on how

to grain your business, with tax -- green your business, tax credits available with that. for non-profit, charitable organizations, we have a workshop coming up. that is helpful for those of you who are looking to access the committee on a durable basis. >> also, on behalf of leader pelosi, i want to thank our panel and her staff. we are tenants in this building. i apologize for the security situation that happened upstairs. if you have concerns about it, please come and see me. i would like to convey those to the landlord here so that it does not happen again. thank you.

the single largest expense increase has been pension expense. the annual expense will reach $500 million by 2013-2014. simply put, san francisco cannot afford to pay the pensions of the employees it already has, let alone the same program for new employees.

our whole concern -- confirmed their support for pension reform, a full 2/3 of voters are in favor of changing the pension plan for new city employees moving from the guaranteed benefits model to a 401k-like defined contribution system, a change already in place at most of your own businesses. san francisco voters agree with most chamber priorities, putting jobs first, encouraging government efficiency, and investing in the city's assets. now is the time to plan for the future. it is essential that we commit to invest and upgrading the port, airport, bridges, and transit system, and continue to support seismic retrofitting of these assets that power our local and state economies. voters are increasingly looking more like chamber members every year. 70% of voters support a payroll

tax exemption for five years for businesses creating new jobs in the mid market area. this is the proposal currently being considered by the board of supervisors. the support for this measure is widespread. it includes progressives. it includes liberals. it includes the business community. it is widespread support. a full 55% support a two-year exemption for businesses creating jobs anywhere in the city, and 78% of voters oppose congestion pricing. this scheme to charge a fee to drive downtown. 78% oppose. we should take that idea off the table. in the months ahead, we look forward to working with the mayor or president david chu and

business leaders across the city to develop more fair and equitable business taxation, which will make it possible for all companies here to thrive. in summary, the 2011 agenda will focus on advancing these three priorities. putting jobs -- job creation first. number two, encouraging government efficiency, number three, avoiding any new burdens on business growth. we will continue to hold our elected leaders accountable with our paychecks and pink slips. everyone across the country is now talking about jobs and economic development. the real test is not what they say. it is how they vote. we will continue to monitor the votes at city hall for job creation and economic development.

now we will take a few minutes, enjoy the rest of your breakfast, enjoy your colleagues at your table, and we will be back with dr. warren browner and ed li in 10 minutes. thank you very much. ok. time to get down to the business of the chamber breakfast. health care continues to be one of the nation's top-growth industries and is growing at an average rate of 6% per year, adding hundreds of millions of dollars to the local economy. the san francisco health care industry employs 58,000 people, and these are high-wage jobs. the average wage is more than jg

to the local economy. they are local and our hospitals create thousands of ancillary jobs benefiting the commercial districts that surround them. california pacific medical center is the second largest private employer in this city. it is led by the chief executive officer, dr. warren browner, a physician overseeing the $2.5 billion rebuild of cpmc. here to introduce the mayor of san francisco, please join me in welcoming dr. warren browner. [applause] >> thanks, steve. it is now a great pleasure for me to introduce our new mayor. i think everybody knows mayor lee has been a diligent worker in senior management met --

management under many mayors. he was appointed our city administrator in 2005 and then appointed again in 2010. he was unanimously selected the interim mayor by our board of supervisors on january 11 of this year. mayor lee has promised all of us to be inclusive, to tackle things head on, and to move the bar for. we are all in need of that strength of conviction at this point in time. please join me in welcoming the 43rd mayor of our fair city of san francisco, mayor ed lee. [applause] >> thank you. good morning, everybody. thank you very much for being here this morning. it is my honor to join all of

you today. i just wanted to let you know, you know, i am not known to be reading of all bunch of speeches. i really like to speak from the heart. i like to speak from what people are talking to me about, and listen carefully to what their needs are. let me say to you this morning that i really feel the city beat here in this room. it is wonderful because so many of you, not just a few moments ago, but throughout all of my time, my brief time i have been mayor, have come up to me and wanted to wish not only need the best luck, but wish me and actually ask me how we can partner. so many of you are partnering with our city in some many different ways. this morning, just on behalf of myself, on behalf of members of the board of supervisors here today, supervisors whom i am

seeing very regularly these days, but all of us, i just want to say very sincerely, thank you for working with us so much. running a city is no longer just about government. the public-private partnerships that many of you are a part of our essential to the way we run government, essential to the way we present ourselves throughout all of our community. i know many of you, whether you are with banks, with private institutions, with small businesses, large businesses, you devote so much time in the partnering with our city. i wanted to say thank you. everytime i see you, it is not so much about us doing something for you. it is about what we can do together to improve the city. i want to thank you. every conversation i have had with all of you has always been about how we can do things together. it is in that spirit that i also

kind of want to give a shout- out. when you hear about the hilton and about local two coming together and resolving something that has been going on for several years, essentially opening up another place i can actually walk into, you start saying, this is a good year. this is beginning to really feel that all of us are communicating a little better. i want to say congratulations, local two, and the hilton. let's get everything resolved quickly. [applause] >> thank you, dr. browner, thank you, steve, for your introduction. i also want to emphasize to you what everybody has been talking to me about throughout the whole city. as i walk through the neighborhoods with individual members of the board of supervisors, as i hold town

meetings, as i hold so many more meetings in room 200, everyone, to the last person, says, please, find a stops. help us with job creation. help us with getting back to work. help us with how to afford to live in this very expensive city. the only way we can do that is to create and sustain our jobs. that is why i want to say to all of you and particularly to my colleagues on the board of supervisors, please, let's all focus on jobs this year. it is so and valuable to everyone. the dignity of people right now, their wishes to keep their families in the city, their wishes to have dignity for themselves, is reflected in their ability to find these jobs and in their hope to have jobs in the future not only for themselves, but their kids. this is a very personal objective that i have learned

through thousands of meetings with people, through the handshakes i have had. i want to say to you that it cannot just be on business. it has to be on business and government working together to create jobs. that is why i spent so much time with supervisor david chu in rolling out this mid-market tax exemption. it is a new way that we have got to work together on. it is one that i think not only will help us anchor one of the most important companies that the city has come and we have many important companies, but this one,twitter, will grow exponentially the next few years. it will have an international identity. it has got a home base in san francisco. more importantly, it will be an

anchor for the mid-market, an area of the city that has been our skid row for so many years. that is why it is so important for us to establish an anchor there, to roll out a six-year payroll tax exemption, one that is calculated to not only bring in the additional 2000 jobs that we think will be afforded for this one company, but it will also attract other businesses. the economy of our city has been changing. even though we have an unemployment rate today of about 9.5%, and that represents about 41,000 san francisco residents being unemployed, you have got to know that we have a lot of hope. the hope that we have instilled through our projects, the hope that we of gained through what we have done correctly and vigorously, with our private partners in mission bay, it

simplifies what we do all over the city. that is the same thing we are doing on mid-market. we're trying to catalyze with an anchor and enroll more -- unroll more. i have had a lot of conversations. if twitter stays here, we are coming. we are coming to where they are. we can find our way to san francisco, find our way back to san francisco. we are doing the right thing. i want to let you know it is not just this, it is the spirit we are creating, the venture, the partnerships we are creating with this business to help us alleviate a problem. that problem has been a blight along mid-market, the hopelessness that has been reflected in so many people there who don't find jobs, who cannot find their way out. we have that hope coming. having said that, because our economy is changing, as you

know, we have been working hard to attract technology, green tech jobs for the city. i want to announce today yet another revelation. it is not just twitter. is zenga with their game and many other companies in the on- line game industry that is coming, that is beginning to expand their offices here in the city. it has been buying up 14 acres in mission bay because we have done the right thing in building that infrastructure. those kinds of technologies are still coming. they're still being attracted to our city. as of today, i wanted to make sure that you know that the other company has been here a while, but they are expanding. auto desk technologies, and their online entertainment software, is expanding.

today, they just told me that they're adding some 16,000 more square feet to their offices that will invite another 75 people to work in the city to add to their 575 persons already. that is another indication that people have hope in our city. as long as we are headed in the right direction, we will get those jobs going. i do want to say to you that we have a big challenge as well. while we are creating those jobs, while we are doing our best to change, to do the right things, we have a big challenge in front of us. what is at stake with our redevelopment agency and the work that they have done to lure private investment in our city, it is at stake. we promised years ago when congresswoman pelosi was the

speaker, and she allowed us to get a lot of federal funds, she helped us get a valuable funds to clean up hunters point and shipyards, and senator feinstein and our delegates worked together for us to get the navy to get to a point where they can sell and turn over treasure island, all these projects cost a lot of federal, state, and local dollars to match. what is at stake is a promise we made that over 10,000 jobs would be created by these projects. we were successful and have been successful in luring some $250 million sitting in our front living room, ready to go, on hunters point, and treasure island, and transbay terminal, and other ports were we have used redevelopment correctly. we are not the wrong agency. we are not the ones that you have heard stories about

throughout the state that might have done abusive things. we have done it correctly. we have learned over the years how to build affordable housing, how to lure private investment, how to make those partnerships and those contractual obligations stir the whole development of large areas in the city. they represent our future. they represent the hope that we have. i want to say to you today that, you know, in looking at what our governor is doing, and knowing that we were about to receive some hurt from the state, you can call it realignment or anything you want, but it is economic curt, we can take our share. hurt with hope is ok. we have known that. we have gone through many years together of that budgets. at the end of all of those dark tunnels, we have always had some hope. so, i say to you today, if the governor has not changed the

language of his proposal so that we can save our projects, then i will ask all of you here today, and our whole delegation in sacramento, to change direction. we cannot afford to have the elimination of redevelopment without language in the governor's proposal but protect our very valuable projects. 10,000 jobs, 570 immediate construction jobs that we have identified. the hundreds of affordable housing units that we are making. john chang is here today. i have already ask him. we will walk through our project with him so he can see how it is done right. i know he has heard a lot of stories and audited a lot of agencies that have not done it right. we are doing it right here. we have worked closely together with our delegates to do it correctly here. i asked you to take a look the next week or so.

it is a critical time. we submit inappropriate language to the governor. we have asked him to make sure that our projects are protected, in fact our own delegates have indicated the projects should be protected. we need to make sure of that because private investors are looking at the language we are looking at and it is cause for concern. if there is cause for concern and they have promised to deliver $250 million in the next few years to immediately break ground and do all the things we promised to do to create those 10,000 jobs, if that is running risk, then this city and county has to take a different direction from the governor. i ask you to pay close attention to that. it is a big thing. all right? [applause] i say to you today that hurt with hope is ok, because san

francisco always finds its way. if you suggest to the governor's lack of attention on this that you are going to give us hurt without hope, we cannot take that as a city and county. i will help lead the effort with the other 10 mayors on this. we are working closer together with them as well. they're looking for hope and everybody in the city is looking for hope. that is why i not only embrace the work the chamber is doing in partnership with the city, but i want to make sure you know we have got to give everybody openly the city. this is our city of hope. this is what we came together to do. this is what i signed up for. i want to let you know, it has been a wonderful two months. yes. even though it is the hardest thing i have ever done, because there are so many people to meet, the thing that drives me the most is the people of the city and what they are willing to do to keep