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.

>> welcome to city hall. it is my pleasure today to join board president david chiu. our chief of police is here today. hydra mendoza, the president of our board of education. the director of public works. my wife anita -- she is the most important. who else do we have? the director of our treasure island authority is here. also member of our housing authority. thank you very much for being here. our city librarian -- thank you for being here as well. the president of the san francisco giants is here. all right. and they won today. [applause]

sorry if i forgot to mention anybody. i know supervisor avalos will join us later. and sandy. thank you for being with us today. sharon has been here for many years. thank you for being here as well. to all of you who our guests -- family, friends, brothers and sisters of our youth commission -- thank you very much for joining us. i have been very thrilled to be your mayor for the last eight months, and one of the things that i have delighted in in terms of meeting all the different -- come on up, john. supervisor avalos, good to see you. [applause] one of the things i have been delighted in in all the different town hall budget meetings and the community-based

organization meetings we have had is to listen to what our views were saying about our city -- listen to what our youth were saying about our city. it either make me happy or sad. it is your opinions that measure the polls and the direction of what we're doing as a city. ultimately, and i know all the other departments will agree with me -- you are going to take over this city. you are going to take it over. you are going to take my job. you are going to take their jobs. you are going to do better than we did. the reason is because we know that we can only do so much, and we have limited time in the offices that we have. but for right now, for you, where you are at, you can give us the best advice about where we should go as a city. you can give us the advice about better legislation, about better

programs, about being more sensitive to families in this city, and to our youth, to the future leaders that this city will have pirie whether you are a police officer or police chief, firefighter, or you may become a doctor or nurse or a teacher or you may become a librarian for the batter for the next giants team, or you may become a social service worker, or you may become a major -- mayor, in all of these efforts, we need your input. we need your advice. it is with great pleasure that we have this opportunity to point you to our youth commission. as a whole body, we need to listen to our youth, so we know which is the right and wrong directions for us to go to and what your needs are. whether it is education, whether it is in sports and social

programs for socializing, whether it is ideas about how to make your life safer, whether your communities are safer, or whether it is just how to make the city a happier place, we need that input. so i want to thank all of your family and friends here today because they will need your support. every commissioner that served in public capacity always sacrifices personal time, and your sacrifice will be well worth it, i assure you. because i will listen and supervisors will listen as you go through your deliberations. all we ask is that you create an opportunity for us to listen to you carefully and make sure we consider your ideas to help make the city better. so before we do the official swearing in, i know that board president chiu would like to share a few words and also supervisor avalos as well.

[applause] supervisor chiu: thank you. i want to add my congratulations to the folks that he has that. there are a couple of folks i would also like to of knowledge. first of all, mario from the youth commission. [applause] who has done an incredible job in helping to mentor our future leaders. i also want to recognize someone who recently joined the staff. [applause] thank you for the work you are doing. and there is one other group of folks that we have to take a moment to acknowledge, and that is your mothers and fathers. can we give it to the parents in the house? [applause] and, of course, all the other surrogate parents that i know are here along with your biological parents. as many of you know, the

commission was born 15 years ago. that means it is a 15-year-old teenager. i have to tell you, when i was 15 years old, i could not find city hall on a map. congratulations for being, as mayor lee said, our next generation of leaders. [applause] without the work that you do, mayor lee, john avalos, hydra mendoza -- we would not have ideas about how to improve public safety, how to improve our schools, or i do not think any of us would have thought about the importance of providing free muni you have shown tremendous leadership. you represent the diversity of san francisco. you represent our neighborhoods and every corner of our city.

you inspire us. when you are able to come together, it signals to us, the adults of city hall, that we also have to come together. we have to work together. she is excited as well. [laughter] i want to tell you to keep on fighting and in part in the wisdom -- imparting wisdom you can see through your eyes as we're deliberating here. i look forward sunday to working on the campaigns of some of you here -- someday to working on the campaigns of some of you here. i look forward to working with you as you head up our city departments, non-profits, companies, and this great city of san francisco. thank you and congratulations. [applause]

>> you have touched on many aspects of your work as commissioners. you have acknowledged your family's supporting you as well. i want to say thank you for your service. thank you for taking on this leadership role. it is not just looking at your future. it is about looking at what your present is like. that is a huge commitment you are making to your peers and generation. that is knowledge can bring to us to help us make decisions at city hall. i think it is a great idea whose time has come. the work the youth commission did last year working with community organizations and youth from around the city was exceptional and worthy of action on our part to make sure it gets done. i wanted to say thank you for that. i want to acknowledge other folks who have gone on to public

office from the recent youth commission. jesse is on the city council berkeley. exceptional things are going on that you will have access to in terms of government service. it is not just working as elected officials. nonprofit workers, julie has had an exceptional career serving in people. we have nicole in the back to used to be a staffer at the youth commission who is now doing a lot of great political work. you may know her. i want to say thank you for taking on this leadership role. i look forward to working with you over the next year. i work very closely with the youth commission. i am very excited about the things we can do together, crafting legislation, approving budgets, insuring the young people continue to have a voice that will be acted upon by government. thank you so much.

[applause] >> are you ready? if i may say this, first of all when they say free muni, let's make sure we know where the money is coming from. we have to be responsible. i want to say congratulations. now you are going to take up the responsibility you have not taken up before. it is no longer about you. it is about us and our city. i want to make sure that you know that as you deliberate and recommend to me and the board of supervisors, the police chief, hydra, know that it is no longer a recommendation for the city. we are in international city. your recommendations will be viewed around the world, not just in san francisco.

it will be around the world in hundreds of difference of languages -- in hundreds of different languages. we realize we're not just a city of san francisco in the state of california. we are san francisco, known throughout the world to provide leadership and hope to provide many other countries in the world. what you say will be heard around the world. note that. please stand and raise your right hand. police say your full name and repeat after me. i, full name, do solidly a firm that i will support and defend the constitution of the united states and the constitution of

the state of california against all enemies foreign and domestic, that i will bear true faith and allegiance to the constitution of the united states and the constitution of the state of california, that i take this obligation freely, without any mental reservation or purpose of evasion. i will well and faithfully discharge the duties upon which i am about to injured during such time as i hold the office of youth commissioner for the city and county of san francisco.

congratulations. [cheers and applause] ♪