leverage 3.6 million which means that the loan we provide them makes them eligible for funding from banks, other nonprofits and credit unions and the rest. 21 businesses have graduated to conventional financing. 65 new businesses have been created and 80 have been able to expand and 8400 entrepreneurs have been educated to date and 1200 have received resource referrals. 63% of our women entrepreneurs are women. about 40% are minority and 63% are low income. now i want to talk to you about women entrepreneurs in san francisco and these statistics really impress me when i looked at these today. 53 loans to date have been to women business

owners in san francisco. now, think about that. we provide loans to businesses in all nine bay area counties. 145 loans to date. 53 of those loans have been to women owners in san francisco. that's 1.3 million lent and average loan size listed here. 164 jobs have been create friday this. of these. >> >> we have loans to majorities and the hispanic population and as well as as these other populations and our staff is fluent in spanish and chinese and different dialect of chinese. different businesses include clothing consiemment centers, tatoo steed studios and restaurants and coffee shops and basically anything you can

think of we have it in our loan portfolio. in fact at our loan committees i am always shocked to see what kind of ideas people are coming up with. okay. let's see here. now i want to talk about barriers faced by women entrepreneurs. so i met with my colleagues earlier and she does coaching and veases advising and this is what we said are the biggest obstacles faced by the entrepreneurs. obviously a work life balance as many women professionals now -- this is a huge challenge. second thing is cost of living. as my colleagues already mention the cost of living in san francisco, the cost of operating a business in san francisco is very high. the next things i want to mention is status of

citizenship. with working solutions we had to turn down entrepreneurs who didn't qualify in terms of citizenship status. the next thing i want to that talk about is affordable space. a number of businesses are approved but not funded because of losing space or not able to find an amenable space for their business. another thing that i wanted to mention that i didn't put on her are child care services. that has come up quite a bit recently. in terms of post and business monitoring some of the challenges our entrepreneurs are face ago so these are people that have obtained a loan and operating their business and these are the struggles they're facing. the

biggest one hands down is financial management. keeping a close and careful eye on overall finances of the business. this proves to be challenging. a lot of times is because the people that come to us they're extremely passionate about their product. they have been a barita for nine years and want to open up their own shop in their neighborhood and provide loans to the community and one thing not in the minds are profit margins. and time management of course. speed of growth which si think is really interesting to point out. not going fast enough and generating enough take home pay. i talked to people in our pole folio who aren't able to take home enough to make ends meet and most of the time it's because of high costs and like i said cost of operating a business in san francisco. so some policy

implications. this is something that working solutions is working on. we're putting together our step ahead loan program and this is a loan program for immigrant businesses, more cash base businesses, really our sweet spot mission clients, individuals that need the cash but don't necessarily meet all of our criteria. the loans are 5,000 to 10,000 and what we're really looking at here is just six months of bank statements. the other thing that i could recommend to the city is financial management programs including the women business centers and additional technical assistance training. one thing that i have seen makes or breaks women entrepreneurs that come to our program is those that have been previously through the womens' initiative program or

the renaissance program or the la cocina program, sf made or other partners that we work with. i can't tell you how more advanced, more knowledgeable, more holisticically think going their businesses these entrepreneurs are, and the beauty of the technical assistance training that they receive is that they're within this kind of small business network and resource group and support center to where they're telling us about resources instead of us telling them about resources even. and then i would say cost of living for families. i'm not sure what the city can do about that necessarily but it's something that has come up quite a bit. but i just want to wrap up by saying san francisco really progressive and when we're putting this together it was --

we just kept reiterating how far advance san francisco is compared to other communities in terms of what services they do provide for women, and you know barriers to entry for women are not as high as we would imagine them to be in other communities, so i want to leave it at that. >> great thank you. do we have any questions? commissioner riley. >> you mentioned earlier that one of the challenges is the status of stsship. can you clarify that? i think if they're legal residents -- >> that's right. >> -- they should be able to borrow money from you. they don't have to be a u.s. citizen; right? >> yeah that's right. they

need to be a legalress dent but a lot of the individuals and entrepreneurs that we meet from la cocina don't even that have citizenship status yet. i know many businesses and my colleagues work with don't meet that criteria. >> so it's not citizenship. it's the legal status. thank you. >> commissioner rodriquez. >> yes thank you. i wanted to ask and you might have mentioned this and i missed it earlier but where do you get all of your fund something. >> good question. so we have been extremely fortunate to work with the city of san francisco through their micro-loan resolving loan program. we're also a cdfi which is funding through the federal department of the treasury and this has been a huge source of funding for us in the last three years we received a $600,000 grant which is flexible for lending and operations. they required

2/3 of the grant be for lending which means $200,000 for operations which is quite a lot. we also received funds from banks and other institutions such as ginetec. we're a sba micro-lender. we recently made our first quiva loan and it provides working solutions with a $200,000 line of credit. we provide a loan to a entrepreneur. we post it on their website. individual lenders such as yourselves can lends to that business as little as $25. as soon as that business funds working solutions is reimbursed. it provides marketing and exposure to the business and working capital

for working solutions. also star bucks and the opportunity finance network has given us lending capital but i want to mention that wells fargo is the organization that initially capitalized our loan fund 2005. >> does the queva and prior loan status like a traditional loan provided to a client? >> that's a good question. i'm not sure but they have to meet our eligibility requirements but that's a good question. >> okay. >> any other commissioner comments or questions? great thank you very much. you guys do very, very good work. next speaker. >> thank you commissioners. next under financing your business is the u.s. business

women owners. we're joined by mark quinn direct director for northern california. >> thank you. >> welcome. >> thank you president adams. nice to address you here. thank you commission. actually i'm privileged to be able to do this. i think it's great to speak to both commissions. i'm a little surprised this is the first occasion that both of you have been meeting because i feel as soo much of what we see in san francisco related to small business relates to small business and women owned business, so it's surprise this is the first occasion to do it but i'm glad we had the opportunity to do it. i wanted to give you a little context. i decided instead a powerpoint i would like to have a conversation with you and if it's okay with you i am opened to be interrupted in the midst if that works for you all to answer questions. i want to give context around some of the

issues that weren't discussed with some of the organizations here. first off i think that the micro-enterprise part of what sba sees and serves all of the organizations here we partner with including the city. all of the organizations do tremendous work in san francisco. i think that the micro-enterprise world of what serves small x business, low income women, and this world is the most exciting part of small business but i want to fill in some of the gaps of other aspects of small business that weren't covered and the contracting work and work that sba does to get business on the federal side and the state side as well but a little bit of context. i think one of the things that was mentioned president adams mentioned it 38%

of businesses are owned by women and it's same nationally and in the state and 30% and 8 million businesses are owned by women. another important part is really the growth in women own said business is twice as fast for businesses in general so we're seeing they're growing faster and start ups and growing. i think another important point to make is about half of the percentage -- about 30% of businesses are owned by women but only 15% with employees are owned by women so you're seeing a lot of women entrepreneurs starting business early stage growing businesses and as they grow take on employees but in general those businesses are smaller, have less capital, have lower revenues, so it's emerging group of businesses but not arriving group of businesses if you will, and one of the themes

that you will hear with access to capital and contracts is women owned businesses are starting and growing their business to scale. they're going to be moving into more access to conventional financing and federal contracts and other contracts in the public sector side which are really more available to businesses of larger side so one of the issues you should keep in mind in this discussion is that the size of women owned businesses is significantly smaller than for business in general. again to reemphasize the importance and i will repeat myself -- my wife says i do that a lot so i will do that too. the importance of micro-enterprise support for this early stage for women owned business and in general small business is critical. i think we forget in san francisco much of what we see here and we live it and it's unique. there is not a status of women in other

places and not this program that is supported in the city like san francisco. you don't have a small business assistance center in most cities in the country. we live in a context that is unique and we forget it's not the way it is across the country and keep that in mind as we talk about this, but as we talk about women owned businesses and the larger businesses funded by sba funding and to give you context. first off the san francisco district serves northern california, santa cruz to the border and san francisco is not all of what we do. in san francisco last year we did about 200 sba loans and average loan size is $500,000. it's pretty good size. it's not the

micro-programs that we support through the lenders and working solutions is one of those and we have others in the city and the bay area so we so micro-lending support but the main program is a guarantee loan program and 100 banks do those loans in the area and just san francisco city we did about 200 loans for about 105 million -- at 100 banks in a year. of that about 25% of the total for women owned business and 10% in addition were 50-50 ownership so about a third of the lending in san francisco we did last year were for businesses majority owned women or 50-50 women owned business so a significant percentage. nationally it's 20% of all sba funding is to women owned business so compare san francisco to the rest of the

country we do larger percentage in san francisco. again those are larger businesses. as i mentioned they're businesses getting average loan size of $500,000 so a bigger business than the micro-enterprise side so a lot of sba lending in california and in the bay area are to women owned business but a higher percentage here in san francisco. i want to move from the finance side to really the contracting side though because i think important part of the other role that we play is helping small businesses understand and navigate public contracting especially on the federal government side. i think everyone is aware that the federal government is the largest purchaser of any goods and services in the world but small businesses have the most difficult time figuring out how to access, navigate through the federal contracting process. not that easy on the state and local side. even tougher on

the federal side and help businesses through certifications and advice and advocacy to the federal contracting agencies how to go out and get access to federal contracts. it's a big role that we play. there is a federal government goal for 23% of all federal dollars to go to small business. we come to close it in the federal agencies come close to that number but don't reach it. about 22 and a half percent this year and there are separate goals for women owned pbs and 5% of contracting should go to women owned business. we fall short of that and three or 4% go to women owned business so sba triers to certify businesses to get access to federal contracting. in the last year that took a long time from the legislation that was passed in 2000 to 2009 a gap of

time where that was not put into place. in 2009sba was able to put the small contracting program in place and get that program up. it's had a couple of years to really get access -- for women to get access to the self certification process to be available to take advantage of women contracting. it's a relatively narrow band of types of businesses that are available. there are about 83 industrial classification system that is used to identify business. a smaller percentage of the contracting is target women owned business in terms of the type of business and we're trying to get the word out to women owned business and taking advantage of that and the going on line and putting the information in and be available and federal agencies can set

aside contracts for women owned businesses and compete for the contracts so we're looking to get the word out in a general way about access to federal contracting that women in business should avail themselves of and be aware of so that's the kind of general context on that. i think that for you all you should realize that from our point of view we do a lot of things in san francisco to target small business. a lot are partnered with the organizations you have heard already and we teach about 400 classes in san francisco that we teach to small business and partner with other organizations that weren't here tonight. score does work with businesses interesting in starting a business, getting some good common sense grounding whether you're on the right track. we sponsor the small development center that does one-on-one consulting and training as well and i think one of the take

away messages that we see on the access to credit side women owned business in san francisco get about a third of the financing that we do in general. it's a growing percentage over time but on the technical assistant side and the micro-enterprise side more than half of the businesses that we counsel, we train that take advantage of the programs today from renaissance, womens' initiative and women owned business looking to get good business foundation, good planning and growing your business that way, so we're seeing more access and counsel to start the businesses and the percentage of access to capital that is targeted to them. i think one of the things that micro-enterprise organizations in terms of micro-lending that we see across the board that the majority of loans that sba

makes across the program -- not just the micro-lending that we do in san francisco but across the country half is to women owned business so we're seeing on the small end of the market we're growing hopefully the entrepreneurs of the future so thank you for all that you do for business small business and supporting business week coming up next month. >> any questions? >> i have a question of your last statement just sort of the disparity if you will of women and access to credit and about 30% versus the women seek being technical assistance. is the disparity is because women are less confident they can access the credit? seems like they're a better risk because they're doing their homework before they seek credit. >> actually it's because the reason that the access to capital is lower is also because of the size of the loans.

they're smaller and the businesses themselves have less of the kind of assets that more well established business population has. i think i mentioned earlier on that the percentage of women owned businesses about 30% of all business, but the percentage of businesses with employees that are womenned owned about 16% -- nationally and in california is 16% so that correlates to the size of the business. businesses with employees are going to be bigger and going to have a variety of other aspects. higher revenues, greater able to take on debt, higher assets that they place as collateral so a variety of circumstances maybe those larger businesses able to access credit either with sba guarantees or conventional credit so i think what you're seeing is the women owned business is a growing younger less higher revenue group of businesses. we also see a lot

of women owned business home run businesses and a lot of businesses that are immigrant businesses that have less assets in the business and have less in the way of credit availability to be able to build their business that way. >> but do you track the absolute numbers of women? maybe that's a better comparable statistic of women and trying to access women versus seeking technical assistance? >> number pursuing it -- you mean unsuccessfully? >> in general if we can correlate how many women are seeking access to capital versus the dollars? i think the dollar is distorted because of the smaller capital and the entrepreneurships. >> yeah those are the numbers of loans. >> by number. >> by number, not by dollar. >> okay. >> and the other thing with the program the average loan size

is about half million dollars and a lot of the uses of sba loans are to buy real estate which is part of the reason why the average loan size is as large as it is. sba does finance for business. they're buying commercial realist to operate the business there. >> >> and they're bigger so the average loan size is larger because of that. what we see for a lot of women owned business they're lower in terms of hard assets to run the business, personal businesses and home base businesses and we see a lot of the women owned business can have lower cost of entry and as a result able to run businesses without buying real estate to do that and as the businesses are getting larger we are seeing those are buying real estate to expand their business. i think what we will see going forward the percentage of women on business

as they grow through micro-financing and more well established businesses a higher percentage and that's happened over time and sba lending in san francisco has grown to the teens and now to 30% of the business. >> thank you. >> commissioner shorter. >> thank you for the presentation. it's very enlightening. i think this is a hard question but one that has to be asked. given your overview of the statistical trends that are takes place, not only locally but certainly on the national level, is there a chance that while we certainly want to support and give all the tools and support available and necessary to growing women

owned businesses -- are the types of businesses that women are involved in as you mentioned personal services and these things are clearly ongoing and cosmetic scpis am presuming some of those things. those are necessary to living as a civilized human being, but is there a chance that women owned businesses are being ghettoized? my concern is that not everyone is clearly going to be involved in technological advance. for instance, i am glad to hear there is certainly the partnership with beginotec with the last presenter and they should be involved. i am fuzzy while these are great micro-businesses that are moving women further away from poverty is there a gap that is

occurring in terms of the trends of the types of businesses and where business and industry is headed now? which maybe i am overinflating, over estimating, but it seems they're divergent paths in terms of womens' interaction with technology, tech lolg cal -- technological advances. are there small businesses, micro-businesses for instance that women are leading, starting that move beyond the hierarchy of the types of businesses that were described? do we have women that are involved in starting something that is a cottage industry so to speak of a ginotech? any other technology companies?

>> yeah. good question. actually i think maybe the way i would answer that is when someone askings to describe a small business there isn't an questions answer. it's so broad and the same applies for women owned business as well. we run a risk of describing women owned business as describing a certain type of business in size, in type, in make up of the business. our small business of the year last year was a woman manufacturing business and three of the last six years the small business for northern california was a woman owned manufacturing business and had 100 smg ease or more so the idea we're talking about women business that are talking in terms of small, micro enterprise, home base is a case for number of businesses but not across