corp., and who is liable, for whose borrowing the money? >> as a micro lender, we expect the principles, the corporate form, to provide guarantees. >> 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.

>> i am so glad to be here and joining everyone here today. she has not gotten used to a real mustache. anyway, i am so glad to be here enjoying all of you on this very important day. i do not know if you knew it, this is important because all of us up here and in particular, carmen and congresswomen spirit -- we are so much in charge with their huge decisions that affect everybody's lives. i have to say that a large part of my work as the mayor is

trying to fill this $306 million gap. as you can imagine, we are short in the city by $306 million, and we have had some months to work at it, and then trying to work at it with every supervisor and every financial person in the city and community-based agencies, and it is a very tough job, but we will get through it and try to balance the budget as well, but for all of you, what i wanted to say this morning about personal financial planning -- it is not only a good thing, it is absolutely a necessary thing. all of you know how much money there is not out there, but guess what? actually, money is out there. you just have to be able to know where it is and then, if you see it, you do not spend it right away. you manage it. managing money to me is one of the most important things people do. all of you have heard that once

in awhile, you read about a famous actor or actress or famous sport per cent who has made millions and millions of dollars. they got a huge contract, whether they were a football player or a baseball player or basketball player, and suddenly, two or three years later, they cannot afford a house. what happens when they had all this money? then, you think yourself, "if i had all that money, i would not squander it." even people who do not have the money, when they get a chance, if you do not have the knowledge to manage it, if you have not paid attention to debt vs credit, you may end up having lost the greatest opportunity of your life, which is to set yourself up with a good financial foundation and then allow yourself to have choices that make irresponsible way. for all of you who are young, it is hard to imagine now what

there might be to make a whole lot of money peer over your lap times, you are probably going to make -- especially because you are here -- millions of dollars. it is what you do with it, how you use it, how you invest it. all of you are like me when i grew up. there's a lot of pressure. you want the car or that i had 2 -- the ipad 2 or the iphone 12. you can actually get the things that you want. but my mother and father taught me that if you want to make money, you have to deny yourself everything first because then you will put it in the bank and save it. i realize that is not the real true way or maybe not the modern way. you can do that, but do you have to deny yourself everything? i think if you have got financial planning like the kinds of expertise around here today, you can actually get the things you want, but you can set it up so that you still have a

sound financial ability to pay for those things you want and keep your life going with a good financial foundation. you can form the things that you 1 years from now. the house or to be able to travel and do the things you want to do or have just a good education so you can open up your choices. i think it is no longer this generation when you deny yourself things. you can be smart about it, put things away in a good investments and get the things you want to do today. you can only do that if you learn how to manage and how to make sure you are not in debt. make sure you build an opportunity for yourself, and the skills out here with all the agencies we have to afford the opportunities. i want to share that with you. we're trying to be smarter with your money and your parents money and your taxes. we're trying to plant five years in advance -- did you know the

city never did a five-year budget before? i am amazed. while i am mayor we get to kick off the very first time. we're not just planning a year to your budget. we are planning out five years ahead so that the city can afford to do more things it wants to do and still keep their promise, which is that your taxes and the taxes your parents pay for do not go up extraordinarily and we still get good schools and great streets and good parts to play in and all the other wonderful things that make the city successful. thank you very much, and congratulations on joining us. [applause] >> thank you, supervisor, and thank you for the great leadership you are showing our young people by posting this today with me and for the leadership you have shown. and don't we have a great mayor in ed lee? [applause] excuse me, there is a frog in my

throat. i want to thank you for being here. vice principal, thank you as well. i understand that our treasurer is either here or will be here. is that correct? he is going to tell you something pretty exciting, and that is how you can save money for college, so listen up when he appears. i understand mario is here from the youth commission. we want to thank you, as the director, for being here. [applause] aaron, where are you? somewhere. [applause] here at lincoln, you have done something that has not been done in many places around the country, and that is, you have created an identity theft council and taught more than 200

students about the problems with identity theft. how many of you are on the identity theft council, raise your hand. [applause] is kneel here? thank you for your leadership in bringing this council together and creating this kind of awareness among our youth. as many of you are probably already aware, more people every year are victims of identity theft than those that are victims of burglaries, attempted burglary, arson, pickpocketing, purse snatching, auto theft, shoplifting, embezzlement and fraud combined. imagine all of those crimes, add them together, and there is still more identity theft going on in this country than all those other crimes. it is a huge problem. i just heard on the tv this morning sony -- playstation --

shut down its system today because someone hacked into the system and was able to get 2.5 million names and credit card numbers. so being smart about preventing identity theft is really a huge issue and a great skill to have. if you are interested in learning more about the program, session two is one of the workshops that a that you should avail yourself of so you can learn more about identity theft. the mayor talked about the problems we are having with budgets on the city level. let me tell you about the problems we are having with budgets on a federal level. he was talking about hundreds of millions of dollars. how about talking about trillions of dollars? that is what the problem is on a federal level. $1.40 trillion is the deficit

this year, and we have a debt of close to $14 trillion. that is not fair to carry that debt so that you as young people are going to find yourself paying more money to service the debt then you are to have services in this country. that is why we have got to fix that. one of the ways we have to fix it is to stop engaging in wars that we are not paying for. [applause] i am going to test the historical wizards in the room. the hubble event two wars that we have not paid for. we have not paid for the iraq/afghanistan/libya war. we borrowed money in order to engage in those three wars. there is only one other war in the history of this country that we did not pay for, that we borrowed money in order to pay for. [inaudible]

did you all hear that? [laughter] he was right. the revolutionary war. the revolutionary war, we borrowed money from france. every other we have engaged in we paid for as we went, but we have not paid for this war or these wars, and the cost is now over $1 trillion. what is worse is that detail on that war, and i mean the fact that all those and wounded warriors that come home that have suffered traumatic brain injuries or serious injury -- the cost of providing health care to them for the rest of their lives is going to make the cost of these wars close to $3 trillion. so why am i telling you this? i am telling you this because it all relates back to you and your life, whether or not there is going to be dollars spent on the kinds of programs you want on a federal level, there will be a

student loan program where -- when you are in college. we have maximized the student loan program on a federal level by getting rid of, interestingly enough, the banks that were making $60 billion a year servicing those loans. we decided that we could do that as a federal government. so we are all looking at ways to tighten our belt. how many of you think your parents do not spend enough money on things for you? [laughter] how many of you think they are taking that money and stalking away for your college education? [laughter] you know they are. that is really what this is all about -- prioritizing what is important and putting the money away. as much as you want that new ipad 2, think about how much you will save by putting that money away, gaining some interest on it now, but using it for your college education.

most kids i talk to in college to they have hundreds of thousands of dollars in loans that they are saddled with that they end up having to pay over a long time into their adult lives. you will want to be there -- you do not want to be there. and you certainly do not want to get these credit cards that you might find at a giants game where they are going to give you a free tall, and you sign up only to find out that it is a 29% interest rate -- i love the giants, do not get me wrong. i go to as many games as i can, but we have got to be smart. whenever anyone is trying to offer you something to get you to do something relative to credit, think about it. ask them what the interest rate is. ask them how much it will cost you per month. you are going to learn a lot today, and i think it is going to be a great opportunity for you. let me just begin by telling you this -- people in this country are saddled with debt.

personal debt, much like the federal government is saddled with debt. for the longest time, we thought that we could basically put it on plastic. that has been the american way. unlike many european countries where they do not have a lot of credit, we have used the credit card in ways that we should not have. so that now, the credit card debt in this country is it hundred $66 billion. that is the equivalent -- $866 billion. that is the equivalent of every american -- man, woman, and child -- having credit card debt that equals almost $3,000. imagine $3,000 of debt that you are paying interest on every month. so you never can get out from under that. you are going to learn lots of things here today. i hope one of the most important things you learn is that money does not grow on trees.

you should always have money stocked away for emergencies and all those great new fan a gold video equipment and games and things that you want to have today, that you just have to have today -- wait a couple of days and see if you still have to have it. or that dress or those pair of shoes or that hers. more often than not, what happens to all of us is it looks great for about 20 seconds, and then we have lost interest in it. so enjoy the day, and i am delighted you are all here to gain greater experience of our financial literacy. [applause] >> we have been joined by our treasurer. i do want to give him the opportunity to say a few words. >> thank you, everyone. thank you, supervisors, mayor. it is great to be here as the city's treasurer.

our office has the responsibility for handling the city's money. that is a big job. that is a lot of money that we collect, that we spend, that we used to provide valuable services all across the city. i am excited to be your with you today because in our office, we want to do everything we can to make sure you have all the information and tools and resources to handle your money successfully. it is so important that every community, every household in our city is able to be successful, save for their future, and make themselves and their kids financially successful going forward. i'm excited to be your today. i'm going to be back in a few minutes, i understand, to introduce our keynote speaker. i am excited about that, and i will be telling you more about what we're doing in the treasurer's office to help families in san francisco and even an exciting new program helping public school system in san francisco have a chance to save for college.

thanks so much for being here. learn a lot. [applause] >> i will just keep my comments brief. i hope you do learn a lot. you're going to see a lot of financial institutions around the rim, talk to them, speak with people can talk to you about financial aid. a lot of departments might have summer job opportunities. talk to them. make sure you use all the resources today, learn about what you should be thinking about in the future. the covers woman was talking earlier about identity theft here i will tell you, i myself actually was a victim of identity theft. someone opened a cell phone account under my name just this past year, and i cannot tell you how much time it has taken for me to go and talk to credit bureaus and try to sort out the whole mess. i will just tell you, it is something that happens to a lot of people. you might not think it is you, but it is something that is good for you to start thinking about. i will not be saying anything further except to thank the people who have helped us today.

principle pain, thank you for the use of your wonderful facility -- about princ -- principal payne. in my office, tammy as the one who pulled all this >> i work with the department of environment and we are recycling oil. thank you. we can go into a refinery and we

can use it again. they do oil changes and sell it anyway, so now they know when a ticket to a. hal>> to you have something you want to get rid of? >> why throw it away when you can reuse it? >> it can be filtered out and used for other products. >> [speaking spanish] >> it is going to be a good thing for us to take used motor oil from customers.

we have a 75-gallon tank that we used and we have someone take it from here to recycle. >> so far, we have 35 people. we have collected 78 gallons, if not more. these are other locations that you can go. it is absolutely free. you just need to have the location open. you are set to go.