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 the board. the same applies for women starting technology businesses. we see that as well. it is not the case that we see one category of business that women owned business are in. i think it's fortunate us to recognize that. >> >> recognize that the challenges for women that have talent and passionate to be entrepreneurs get support for doing that and less likely to be supported in other ways and i don't think that's the only category that we see. we see a very broad spectrum and more than half of the help that we give

in all of these groups more than half of the assistance in growing business are from women owned businesses from all different types and it's really not the case that women, business are -- i think what you're alluding to stigmatized to a smairl less capitalized business. i don't think that's the case. i think it's a better picture than that. >> commissioner rodriquez. >> [inaudible]

>> we do, and the challenge -- actually you alluded to it earlier in your comments. the challenge of federal contracting but it's really all public contracting of the size of contracts one of the phenomenon that we see in public contracting is the size of the contracts get bigger and the availability to small business is more challenge. from the contracting officer's side and they see larger contracts as easier to manage and means larger contracts and means larger businesses, so the challenge that we try to do is really to get to those federal agencies but the same applies to the state and local side as well and do smaller contracting. the idea that we set a goal at 23%

of total and 5% for women owned business doesn't do much good if the only businesses that can get the contracts are very big businesses or large women owned businesses. the challenge is figuring out in this case how the cost doing contracts for a public agencies can be managed? and that's what we are trying to do is help businesses get access to that and help them to navigate how to get through to get the small contracts. the one last thing we also try to encourage the major prime contractors to do sub contributing work to small and women owned business. >> just a piggyback on that i was actually going to ask before whether you had any -- whether you had -- sba identified any jurisdiction beyond san francisco that has done a particularly good job or city or county i guess i would say,

with purchasing and contracts with women owned business? >> nobody does as good as san francisco but it's a challenge for every city to do that. i think it's something that we work i worked in both throughout the bay area and i worked as a district director acting in los angeles as well, and all cities have a challenge in trying to get contracts to small business, to women owned business as part of that is a big challenge. parts of is the limiting conditions where contract preferences can go in california. that's one of the conditions that makes it more difficult to get a goal in the way on the federal level you can't do on the state level so there is challenge with that respect, but i think you heard it earlier too. more emphasis for local business enterprise contracting is something that we encourage, a theme of what we would like to see that is one of

them. more emphasis on local business contributing which is something that can be done in california and shg something that we would like to see. >> any other questions? i just would like to make a comment director quinn. when you were making your statement you said about how we live in a bubble here because we have different organizations like renaissance and la cocina, womens' initiative, and i just want to say sba and san francisco is a big part of that and since you have been a director you give us the support for that whether it be in small business week. sba's partnership with the city and county of san francisco, with the state of california i think make your district like the eny of the country and i want to thank you for everything that you do and you guys do an

awesome job whether it's in your classes, government contracts, loans. i mean you guys are always out there on every level and i want to thank you for that. >> thank you want i appreciate that. i have to say i have the best job in the federal government that doesn't have access to air force one and that is to work for small business in san francisco. thank you. >> thank you. okay. should we have public comment on the financing section? seeing none public comment is closed. next item. >> commissioners that places you on item c growing your business, and on that we have under one is administrative services local business enterprises. swriewla jones monitoring division. >> hello commissioners. i am zula jones. i am manager for

cmd. i manage the surety bond and finance program as well as the technical outreach program. my colleagues here emily is going to start the presentation. i can introduce herself or i can do it. >> hi. i manage the certification unit for the local businesses for the city and county of san francisco. i always have handouts for the public as well as the commissioners and the secretaries and everyone. >> while beverly is doing that i want to give a little brief background. in listening to the previous speakers and the questions that was raised i think we got some answers. we are the best city to do procurement with women. we can do better and that's what we're here to talk about. as you maybe aware we have a city ordinance called the local

business enterprise ordinance. we developed this program as a result to our challenged program, the 209 challenge to the minority womens' business program known as chapter 12a. we were not able to continue with the race base and gender base program. however, we are still able to provide for local business and the local business card techs would be minority owned business, women owned business and other business enterprises so those are the three categories by which we are working with and able to assist. now 209 while it became law as part of the constitution here in california, it didn't restrict us from doing technical assistance and outreach as well as tracking businesses. that's -- those two things are very

important to women owned business, tracking them and making sure that they have the support and assistance that our city is providing, and getting them to the resources. training and coaching them to and encouraging them to participate in city contract opportunity. beverly is going to talk about the certification process and give you information how many businesses we have certified. >> [inaudible] -- our local business it's so proposition 20 thien doesn't restrict us from tracking our local businesses in terms if they're women or minority so what what we have here is a local business enterprise program and i had up the certification unit, and we can certify local businesses that are primarily headquartered and based in san francisco. that is one of the major

requirements. there are other requirements. it doesn't say "small" in the title but we're a small program because we have thresholds depending on the goods and services that a business may offer to the city. when we certify a company in san francisco they get benefits. they get benefits in terms of a bid discount and in most contracts for city and county of san francisco if there's local dollars involved there is a mandatory -- they use the word "goal" but it's a mandatory aspect of city contracting that a certain amount of money needs to be gone or set aside to local businesses, so this is where we have different sizes, we have micro-set asides for those companies to do business with the city and county of san francisco. we also have small sizes and the larger size which is the sb's'. we really do this so that we can track and we can assist and help our local

businesses in san francisco to compete more effectively on city contracts to be certified at the local business in san francisco you nee not be a resident of san francisco but you do need to have a physical office and staff here if you have staff, so a little bit more about our businesses in san francisco that we have certified. 21% of our certified firms are wbe's. i put 79 non wbe's. this includes obe's, mbe's and obe's as other business entities and minor businesses as well. out of that pool let's take a look at certified women businesses here by percentages. you are probably wanting to know where are they, so 52% of the