initiatives. -- i understand there was investment neighborhood initiatives. >> we don't>> we do not. other than other programs at oewd that we're trying to better synthesize. we are trying to create an entire spectrum of lending in a financial assistance for businesses large and small. the revolving loan fund is really the first step. we're hoping to be able to capitalize a fund through the budget process that would have flown to a higher level. that does not exist yet. but for $50,000 to $100,000 fines, working with other community lenders. we then have other federal programs. we have a section 108 loan which provides even larger loans to businesses, through hud.

we have a new market tax credit program were the city received an additional $45 million of allocation. received $35 million a year ago. another $45 million from the u.s. treasury. it is a tax credit program, not a loan program, but it winds up resulting in a dollars to projects that are in distressed neighborhoods in san francisco and/or employ low-income people. what we're trying to do in the oewd is created entire spectrum, so when we see needs, we can figure out which of our financial tools are best able to be deployed. but there are no other departments that have direct loan programs. we have grant programs in the city. summer specifically targeted to certain outcomes or activities. but direct access our capital for businesses that is flexible to allow them to do things like expanded business, start a business, buy inventory, have working capital, does not exist as a city tool, something we can

help control and direct people to. >> the sf shines program, is that the store for the program? >> that is directly for for assata improvements. currently, the funding is in a state of flux, because it was funded by redevelopment funding. so that currently has no funding. that is a conversation we hope to have with the per the budget process. thank you for reminding me that that is another tool we have in the financial bucket, the sf science program to provide facade improvements. supervisor chu: small businesses might have ada challenges. would that be a qualifying expense? >> absolutely. the last thing, i wanted to talk about our outreach and marketing, the current outreach strategy has collaboration with

over 30 targeted groups. such as commercial banks, neighborhood community associations, a merchant associations, chambers of commerce from city college, and workforce development organizations. they often include educational presentations, workshops, events, and the ethnic chamber of commerce and nonprofit organizations that serve latino and african-american business groups. outreach was conducted by working solutions. oewd is going to take a more strategic approach in marketing. the loans to underserved areas, we're going to conduct a door- to-door outreach to inform our merchants of this resource. we're going to do that in spanish and in chinese. the outreach team will be highly educated about the loan fund and will be able the answer questions on the spot, not just handing out fliers. it is not a full intake and initial assessment as to whether this loan could work for a particular business. also, we're going to work hopefully with all of your

offices. the nedo's we fund and conducting targeted outreach in neighborhoods and concentrations on small business owners. we're going to do that in the tenderloin, south of market, excelsior, richmond, and other areas. targeted outreach to those businesses, door-to-door, with a language competency to inform them of these loan programs. we will be happy to report back to you on the feedback we get. supervisor chu: thank you. i am just wondering, jennifer. the loans will expect to put out there might be at a rate of 4% to 6% for the businesses. >> correct. supervisor chu: comparatively, about a year-and-a-half ago we set of the opportunity fund, loans that would go to -- this is separate from san francisco, but about $1 million worth of loans that they were going to make available for ada improvements across the bay

area, with the san francisco in mind. you know how our rates compared to the program? >> i do not know, but i do know our rates are some of the lowest available right now. i can ask emily again. >> typically the size of the loan would be an 8% to 12% interest rates. so i fixed 4% to 6% interest rate is pretty much the lowest you'll see for this type of product. >> supervisor chu: savers and the like the opportunity fun, it would typically be between 87 and 12%? >> yes, i believe they are around 8% or 9%. >supervisor chu: comparatively, we're at 4% to 5%? >> yes. supervisor chu: the administrative fee that would go to working solutions, want to understand and clarify. i think this was set at the last hearing. that 15% is in a one-time

administrative fee. we do not continue to pay sort of an ongoing amount recalled that alone, right? >> that is correct. supervisor chu: thank you. i believe this item had a budget analyst report. are there any updates to the report? >> a couple of updates, madam chair. on page 6 of our report, we point out that regarding the 52 jobs that were created, we are advised that the number of jobs created and retained reflects only one point in time. there has not been a follow-up to determine the number of jobs that have been continued after one or more years. now, on page 7 of our report, we previously pointed out that there is available about $784,920 available, including the wells fargo funds. if you allocate moneys for the administrative costs, there

would still be left now a balance of, conservatively, $667,182, which would provide for an estimated additional 26 loans. so we consider this matter to be a policy matter for the board of supervisors, given the fact that their funds available and this request is for $100 of new general fund monies. and we further point out that the requirement to create or retain at least one full time jobs for low to moderate-income persons within 12 months of receiving a loan is not known, despite the fact that this is been a requirement. the department cannot advise us as to whether any low to moderate-income persons had been hired. supervisor chu: thank you, mr. rose. supervisor avalos. supervisor avalos: yes, oewd, talk about retention. that would be great. >> with regard to retention,

that is part of what we are pledging that we will do as part of an annual analysis. what we are required to do and what we have been doing to date in order to verify that the jobs created are low or moderate income individuals is asked the businesses to provide a forum to their employees which asked them what their income as. that form and then it needs to be returned to the employer and returned to us, and we need to be accountable to hud, as well as to you, about the claims being made about low-income jobs being created. it is a challenge to get that information which the employees are not required to provide. we have to provide best efforts to get that information. common sense says that any small businesses that are often providing relatively low-wage jobs, that these people taking the jobs are probably low to moderate-income individuals.

however, we have some of the seventh five jobs that have been created through this loan fund, we have received back 22 forms. of. 22, we have received 85% of the jobs have been low or moderate income individuals. we're going to redouble our efforts and the figure out ways to continue to get that information and we will be providing that to you on an annual basis. supervisor chu: thank you, supervisor avalos and jennifer. are there members of the public who wish to speak on item number five? >> thank you. i am sharon miller from renaissance entrepreneurship center, a small-business development center. we work with clients throughout san francisco. we have worked with working solutions for many years. approximately 25% of the loans

and working solutions' portfolios are from a renaissance clients. and their loans are in magnificent boost to the small businesses. right now, as you know, small businesses need all the help they can get, and they're not able to get loans from local banks. of the loans that renaissance does, we actually are not a loan fund. what we do is repackaged loans for our clients, and then we can work with groups like working solutions to get those loans funded. working solutions has been magnificent in both providing support for our clients and in the follow-up support that they provide as well. their rates are superb. and certainly the clients we work with our 80% at low to moderate income. when they agreed businesses, they are creating at least one job, which is full employment for the business owner themselves. with this additional funds, i

think it is really the best way to get more capital into the hands of business owners who are either starting are growing their businesses. thank you. supervisor chu: next speaker, please. >> hello. i am is small business owner and have a small company. we're based in the mission. we sell to about 400 stores throughout the country. mostly made in the usa but it is also an immigrant and have lived here for 10 years. i first reached out to renaissance and got business education through them. through their amazing helping, and managed to get to know working solutions. they gave me a loan for $2,500 from the city's revolving fund, which really helped my business greatly.

dizziness secret that -- it is no secret that the business needs money to grow. we're putting every penny we earn back into the business. it is for inventory and to hire more workers. we can grow yearly with the money. i got $2,500 from them and grew my business 210% since then. we're on the path to growth 200% again this year. getting the fuel to grow my business is essential. and there are connections on the the follow-up which is great. i managed to get two different mentors, a retired ceo's, amazing people who mentor five hours a month for free. i am really, really grateful for the support. i encourage you to keep doing this. if you want to see this type of growth in san francisco business, you need to help fuel

the growth through the small business was because i cannot get the bank funding that i needed. that is just my two sons and my small story. thank you. supervisor chu: thank you. >> what i want to bring your attention is that the mayor's office of economic development first has to get some facts right, ok? san bruno avenue, we talk about san bruno avenue where all the businesses really are, district 9. right off the bat the targeted areas are district 9, a tan, and 11. that correction is important. secondly, when you offer more loans to entities like renaissance who are connected

with the redevelopment, you also need to offer assistance to other entities. one of the ways if you really want to find out about any entity, if they are very fair, is to do an audit. a simple audit on some of the entities that have been mentioned today, you'll find out that even if their employees cannot be working in those areas because of whatever. and the questions that were asked by the supervisor of wells fargo, even though he could offer you $5 billion, wells fargo was very instrumental in many foreclosures. [bell rings] so i am very dubious about bank

of america and wells fargo giving monies for this, even if they give it at 0.5%, because they have not treated district 9, 10, and 11 in a fair manner. thank you very much. supervisor chu: thank you. next speaker. >> good afternoon. steve, president of the outer mission merchants and residents association. i am really excited about this, especially -- asleep preaching to the choir of course, but mission street, basically between silver and the daly city border has most of the businesses, small business owners. we do have wells fargo and bank of america. but most of our business owners or small-business owners. one of the things i brought this morning at the forum is than

most of these people, not all, and most of these people do not speak english and will have a hard time speaking english or understanding english. and when they have either call me or i have reached out to them, they are afraid to look at these are virginity funds are getting these small interest loans. so i am glad that jennifer had put down in her talk about reaching out to people who have a hard time with the english language. doing brochures. and i am willing and excited to do this for them and for the neighborhood. our news letter as an outreach to let these people know that we want to help not only fix their awnings but clean up their storefronts. the other thing that i wanted to say is most of these business owners actually hire from within the community. [bell rings] i even know that walgreen's

hires from within the community. so that is good for us in a good for the economics of the outer mission and the excelsior neighborhood. supervisor chu: thank you. >> hello, my name is a man well. i owned a small business in valencia and mission district. i tried to get a loan from the local banks. i cannot get it until they know about working solutions. i got loans from the city from working solutions. and we create eight employees. a believe that more people like me maybe just need a little help to create employees. all of my employees are from a mission, low-income. by the way, i get some loan from

opportunity funds. i pay this money for working solutions. that is it. thank you. supervisor chu: thank you for your comments. >> no, some people might say, they might go -- ♪ >> don't want no small business don't want no small business around here they have got little budgets they will not give me money and they cannot go and hide don't want no small business around here ♪ >> but what i say is -- ♪ >> on a clear budget day ride these funds around the you

because you can see forever and ever money more on a clear budget day ride these funds around you and you can see forever and ever money more ♪ >> thanks. supervisor chu: thank you. are there other comments from members of the public? seeing none, public comment is closed. ok, this item is before us. i did have my initial reservations at the first hearing about the ability to loan out the dollars, in particular given the track record of how many loans we had put out in the past and knowing also that there is a change in the wells fargo dollars that might allow it to be more popular. what i would like to do perhaps is to put half of the $1 million on reserve, pending the need for it. as the program is evolving, if we are actually seeing that the

loans are being let out at a rate that would justify seeing the rest of the money, come back to the budget and finance committee. would that be problematic as a condition to that on to the item? >> no, that would not be a problematic condition. we could absolutely then come back to year. supervisor chu: i think that would be helpful. i think you can come in advance of when it it is expended completely. but when you're actually at a trajectory to spend it, you can come back. >> that sounds reasonable. thank you. supervisor avalos: that was one of my biggest concerns, being able to reach out to businesses were english was not the first language. a lot of the businesses that have been outreached average over it -- revolving loan funds. putting it on reserve makes sense to get the report back. also, maybe if we're not seeing

evidence that businesses and the neighborhoods where trying to target are not reaching out or not applying for a loan, then we can look at the program and figure out what will really make that happen. i really want to see this program work in places like san bruno avenue, leland avenue, teravelle, excelsior. these are very important. let's see what happens. supervisor chu: thank you. if that is the case, can we entertain a motion to but $500,000 of this $1 million amount on budget and finance committee reserve and send the item forward with recommendations? ok, we do have that motion. before we make it, and to the department. i believe we will need to make an amendment to the actual piece of legislation for it to get hurt on tuesday at the following board meeting. i ask the department to work to

make sure the language is put in by the end of today business day. we will do that without objection. thank you. then if we could take a two- minute break or a few minute break. thank you.

supervisor chu: thank you for your patience. we're back in session. call item number 6 and 7. >> item number six, hearing to receive a regularly quarterly update from the public utilities commission on water system improvement program to include information on projects completed to date, the corresponding costs, and scheduling and the corresponding cost for upcoming projects. item seven, hearing to consider release of reserved funds for public utilities commission in the total amount of $42,329,458 to fund the following, water system improvement program projects, cuw388-