please. >> good afternoon. my name. cina -- name is dina h illiard. the issue of public safety is an important one for us. we are one of the only cities without a community ambassador or community died proponent -- component. we feel it is important to provide alternative solutions to the revolving door dynamic in the hall of justice. to us, see jcjc is a part of tht alternative. when it was first established, there was a lot of discussion in the neighborhood about whether or not it was needed, how it was performed or could benefit the neighborhoods in the city. the court was extremely sensitive to those concerns and they are one of the only bj they are one of the only collaborative courts to have a

community advisory board component with regular town hall meetings as part of the core mission. there are a lot of statistics that can illustrate the success of the court. captain gary, are you going to come up? the captain has put together some statistical numbers of cases that were referred to the cjc in 2010. there were 100 -- 1207 cases for ford. 2011, 1163. to date, there are 95. i know the court's perspective, as i am walking through the neighborhood i hear residents' talking about going to the cjc for help. that is the greatest marker of success, the word on the street, that that is where you can go to get alternative solutions to the revolving door.

supervisor chu: thank you very much. are there any other speakers that wish to speak on items five or six? >> can i submit this to you? the numbers? supervisor chu: yes. any other members of the public of like to speak on items five or six? >> good afternoon, supervisors. my name is carl hall. in the completion person. i began the program when they first started in august 2009. in september of 2010 i graduated from cjc and got off. not only did i graduate, but i got off of probation and have my taste -- had my case dropped. my record became a sponge. that by itself is a miracle and

something that no one going through the hall of justice system has any right to expect. cjc made that happen for me. it also made my life better since the day that i walked in. since the day that i walked in, i had only the clothes on my back. there were two years since that i have participated and i was able to get my life back. i had a wife one year ago. we adopted a puppy six months ago. we are planning a family that way. i am living my life the way that i was supposed to, many years ago. it is with the help of the cjc that i was able to open my eyes and see the opportunity for what it was. here was a neighborhood option

before me, to be able to pay my dues and get back to the community. i never thought that i would volunteer for anything in my life. i now volunteer at the cjc at their front desk, helping the clients. the word on the street that i hear is that the cjc continues to work. i have heard it from other people who have been through programs that work for them. it worked for me as well. to eliminate the cjc program from its location in the neighborhood that service would be an injustice. because that is right in the element, right in the neighborhood where most of the crimes in this city are committed. i do not have any numbers to back that up, but my point is

that in order for it to continue to be effective, to be what it is, it needs to be in the neighborhood. that neighborhood is being impacted on the negative side when it did not, and positively now that it is. i now live in that neighborhood, where i only hung out there before. i now live their income safe. thank you for your time. [applause] supervisor chu: thank you very much for your comments. are there other members of the public that wish to speak on items five or six? seeing no one, public comment is closed. given that, we have a number of amendments to take action on. we have a few recommendations to amend the proposed resolutions, 12003, 9 on page

2, changing the management responsibilities from december 31, 2009, from december 31, 2008. there's also an amendment proposed on-line two, to change the date of the expiration from july 31, 2011, to june 30, 2011. there are those two amendments in addition to the ones proposed by an item number six, including the requirement that the real-estate department come back to the board in report on plans for the usage of that space prior to the extension -- expansion. i believe that those of the amendments on the table. colleagues, can we take those without objection? that will be the case. to the underlying items, is there a motion to send about items forward as recommended?

okay, we do have a motion. do we need a roll call? we have a motion to send those items forward as amended. i would just ask the real-estate department to work with our clerk to make sure that the language that was intended for the amendment gets incorporated into our files and provided to the court by this afternoon, so that we have it for tuesday. thank you. item number seven, please. >> item #7. kimordinance appropriating $1,000,000 of general fund prior year fund balance for the small business revolving loan fund program in the office of economic and workforce development for fy2011-2012. supervisor chu: thank you. for this item, we have holly from oud.

>> thank you. good afternoon, supervisors. in the program manager from the division of economic development. i am here today with emily, who is the executive director of working decision. we will be presenting on the agenda item in front of you. we were hoping that you would recommend this appropriation of $1 million of general funds to recapitalize the revolving loans. we have a power point presentation. just a little background about the revolving loan funds. launched in 2009, it was modeled after other loan funds that provide low-interest rate loans to persons that did bj do not

qualify for traditional services. as the name suggests, the revolving meaning is full of funds as hoped replenishes and bar wars pay back their loans to create new opportunities for new projects -- borrowers pay back their loans to create new opportunities for new projects. in 2009 it was funded with an $800,000 appropriation with community development block grants, as well as the title line department of commerce eda funds. the proposed ordinance in front of you is the proposal for $1 million in general fund monies. supplementing that, the wells fargo fund. the payments from the small business loan program of $77,000, giving the sum total of 1 million [unintelligible] that amount, 15%, would go in as

the administrative fee. giving the available capital. a couple of things to highlight about this recapitalization, the bells fargo funds are actually restricted funds. they are only targeted to the southeast sector of san francisco. they would not be available city-wide. this is a public-private agreement between wells fargo and the city to target the underserved neighborhoods. also, the wells fargo fund is a loan to the city that requires repayment. after the initial loans are made, in five years they would have to be repaid to wells fargo. regarding the administrative fee, this is a onetime fee. they will be not only administering the revolving loan fund, they would include

technical assistance to all of the borrowers and applicants before, during, and after the loan is made. this would be for a term of five years and, pretty much in perpetuity of the revolving loan fund, which working solutions was able to provide for this amount of capital. the three major needs for recapitalizing or the following -- there is definitely a demand for this capital. working solutions received 25 loan agreements per month, alone. at $25,000 average per month, that would be more than half of the million dollars in financial requests. no. 2, that this part, this recapitalization is a critical component of our nation district -- of our districts strategy.

we definitely need more economic tools to help the small businesses in the economic ever heard, especially underserved neighborhoods. we will be working with district 11 organizations, such as caa and the filipino community center, to see the needs in those areas, targeting financial assistance help. the third is -- they're definitely needs to be a volume of capital to launch this fund again. in 2009, there were 283 inquiries alone right after the launch. that is $7 million in requests just a few days after hearing about the fund. revolving loans today are close to $200,000.

the relaunch would not be able to satisfy the citywide needs. we do have an outreach and marketing plan. we will be getting the word out. our neighborhood partners in economic development organizations, like urban solutions and the renaissance center, we will also be working with the new jobs plug. this is the initiative to be an extension of the small-business center to reach out to neighborhood and commercial businesses. part of the wells fargo plan would be for our managers, part of the office of economic work force development programs. the one to one or door-to-door campaign, there would be a media

outreach at the small business center job squad, but also door- to-door with managers and staff for multi-lingual, spanish, and chinese. >> -- supervisor kim: is there already a corridor meter? >> we have 11 in the neighborhood market initiative. this would be in the valley. supervisor kim: i am sorry, which one? >> of leland avenue. -- on leland avenue, lower pok lk street, third street in bay view, mission excelsior -- supervisor kim: mission street and excelsior? >> yes. lower 24th, fillmore, and terra

belle. supervisor avalos: follow-up questions as well. on those corridors, or those cities that? or are they contract out? >> it is a combination. they provide oversight in those corridors. we also check out to neighborhood organizations that have the capacity to do major our reach. >> >> for the excelsior, that would be the excelsior action group.

at ocean avenue, that would be the ocean avenue action association. supervisor chu: it had formerly been funded by the city in the past. >> yes. supervisor avalos: has there been any real assessment of what the success is? what do you see standing out as what really made this program worth funding again? >> after my half of the presentation, we will be talking about the current loan portfolios and success stories with that, so that we can answer the questions in the later half of the presentation. supervisor avalos: great, i will hold on to those. >> thank you. about the revolving of loan fund in requirements in terms, businesses need to have no access to bank loans and be able

to create and return one full- time job. in terms of the revolving loan funds, it is very favorable. up to 50,000 for existing businesses. the term of the loan is a fully advertised term. business rates are below the banks and other contacted -- contacted? organizations. just to give the income terms 44%, that equates to $460 per month. the loan uses as well are very flexible. we have working capital, inventory purchases, equipment, machinery, startup costs. just in the bit about the revolving loan funds in working solutions, they managed the

entirety of the lending process from deals, underwriting, and bone servicing. they have financial specialists were fluent in spanish and chinese. the added benefit of having the profit administrator in the loan fund is that with the fund beyond the balance sheet of a nonprofit, they were able to access guarantee and loan-loss reserve programs, such as california capital access programs. working solutions are able to mitigate the loss with their strong underwriting process and technical assistance. loans to date have developed no charges. the bay area loans have gone to $2.2 million. compare that to the standard 4%

to 5% from other providers. before i introduce the latter half of the presentation, i want to read into the record testimonials from our loan providers. i sent them out to be included into the file. this one is from brian. he writes -- i am writing to express my support for working solutions in its programs, which have benefited so many local businesses, like ours. we are developing new educational toys. the cost of developing new products have been prohibitive for small businesses without investment funds. in this economic climate, it is next to impossible for a company like ours to maintain debt financing. without loans from working

solutions, we have been -- we would have been unable to build two of our products. the designers and engineers that participated, our catalog would be smaller, leaving salespeople but much less to sell. again today, small businesses need programs like those, from working solutions, to grow. i hope that they continue to support their efforts. sincerely, president of twister toys." the second testimonial is from core reynolds. his business is called core foods. "by business would not exist without the revolving loan. with this loan i was able to grow my hobby into an operational business, employing two full time in several part- time employees.

the working solutions provided nonstop, critical business counseling and advising a rock -- along the way. without this clear direction, i certainly would have made potentially catastrophic mistakes. i believe that these are some of the best investments that the city can make. we are used to efficiently using the resources we're giving -- given. the kindness that has been shown has inspired me to give my prospects -- profits back to the community. we pay health insurance, pay living wages, supporting farmers across california." the third testimonial is from urban bizarre -- supervisor chu: with regards to the testimonials, perhaps you can share a copy of them with us in the testimony -- in the record, perhaps we can receive them that way rather than beating them out loud.

>> ok. supervisor chu: are their closing comments on your presentation before we go to the next? >> that afternoon, my name is emily and i am the executive director of working solutions. it is a community development financial institution. a designation that the treasury department for organizations that provide micro loans like ours. our entire role is to help small businesses to thrive and create jobs and viable opportunities in the city of san francisco. our unique model is part of the success of the repayment of the loan fund. we wanted to talk about technical assistance and what that means. coaching, advising, and mentoring. coupled with the actual access to capital peace, including

educational and technical assistance, helping the business is not only with the dollars, but expanding the businesses to grow and be more savvy entrepreneurs. during the pre-loan phase, we provide about 20 hours of business coaching per business. during this time we help them to understand their personal finances, business finances, and personal credit, as well as a need for a loan and whether or not is the right time for than -- whether or not for them it is the right time. it is so crucial to the success of the business, thinking after the loan -- but will i do with the money? once we provide those 20 hours of assistance, we have a community group that reviews each application. once it is approved, we provide

five years of free advising or technical assistance. this is true of all of the businesses, as well as the loan fund. but this post-loan coaching involves is a staff member every three months, going over their finances with them. their marketing plan, their business strategies, talking to them about the challenges that they are experiencing, connecting them to the proper resources. in addition, we connected a business to specific projects, perhaps creating a sales plan or marketing plan. we bring in skilled advisers to work with each business. we provide extensive legal services to the business, as the legal help that they will

receive is also important to that business. r.m.b. year free legal services to help them understand their contracts and legal structure that is best. we also have educational workshops that we have both participated in. there are eight of them per year. marketing, social media, a human-resources, and all of these things that businesses tell us are the most important things that they want to learn about to have a successful business. over 85% of our businesses are still in business after five years, compared to the standard 50% failure rate reported by the fda, that is a huge success. an example of a business to receive technical assistance support from us was the outlands cafe, which was able to create

14 new jobs. they are expanding rapidly. in terms of the san francisco revolving loan fund that we have administered, we have made loans to 28 businesses. we cannot stress how crucial this financial support is for the businesses. as you have heard from testimonials, these are businesses that cannot get a bank loan. there is close to no option for them, especially start up businesses that banks will not lend to, where they believe the funds to get started but there is no other option for them. the 28 businesses run it -- receive loans between $25,000.50000 dollars, and they have created in retained 74 jobs. the funding has helped 17 new businesses get started and 11 businesses to expand their operation. one of the goals is for them to get their funding from us, from

the city, and be able to graduate and leverage those funds to get a larger bank loan. our lowest recipient, after having received loans and becoming more successful, stabilizing, have access to an additional $500,000 in loans. in terms of the demographic of businesses that we have worked with, 57% of women owned businesses, 68% are low-income entrepreneurs, 57% are minority- owned, in a slight difference from the power point, 60% or startups, 40% our existing businesses. -- 60% of them are startups, 40% of them are existing businesses. here, this is this has created eight new jobs and is supporting

a number of low-income immigrant employees. on the next slide, we just wanted to highlight that this is a citywide program and the location where the businesses are located, and the owners, are revised. you can see the breakdown throughout the city. and finally, the final slide talks about -- supervisor chu: the supervisor has a question? supervisor kim: ok. i am sorry. supervisor chu: we just wanted to see the distribution of loans. the slides were movie -- moving too quickly. supervisor kim: you can keep going. >> a number of these businesses are creating their products in

san francisco. generating additional opportunities, for example, these handmade bags are created here. heliotriope make handmade lotions and bath products. this company makes children's decorations. these businesses are very much san francisco focused and giving back to the community, providing a lot of opportunity for not only their own employees, but for others in the community. supervisor chu: is that it for your presentation? >> it is. supervisor chu: let's go to the budget analysts report. >> madam chair, members of the committee, on page 4 of our