credit unions offer micro loans. we do a lot of micro loans up to $50,000. this is -- we check credit. we need a business plan. then we look at the three-year tax return and that statement. we do a lot of home care and mom-and-pop shops. we also do start ups. we asked for approval through documents. we work a lot with people who do not know how to file taxes properly. we are mainly focused in san francisco. we are small. we focus mainly on the tenderloin, chinatown, bayview, visitation. we do a lot of expansion. people start small through the credit union and then want to go to the bank. we know we are limited. we cannot afford to give out a big loan. starting from the credit union, we educate them about filing taxes properly and then moving on to the bank, a small one, expansion, and we work with the bank. the bank and credit union are similar. we do allow tax returns, projections. credit unions do not charge an additional loan or processing fee. processing time, on a small loan, -- consumer loans probably a few days. because we require a business plan, som

processing time, on a small loan, -- consumer loans probably a few days. because we require a business plan, sometimes it takes longer. business plans take a while. especially bank statements. we need to see consistent income coming in. so far, a credit union delinquent rate is quite low because we are working with a client. we want to keep that low and as part of our mission. there is no application fee. if you are interested in an application or information, i have brochures, or you can give us a call. >> thank you. next is marked with wells fargo. >> hello, i work for wells fargo bank. i cover the northern california region. i usually focus on about $350 -- $350,000 of sbe loans. last year, for 2010, i did 43 loans. so we are lending. i usually focus on six different types of loans. start-ups, business acquisitions, real estate purchases with ti's, working capital, a partner buyouts, business expansion. when i am looking at a potential loan, i use the standard five c's of credit. the first one is character. what we are looking for is a minimum score aro

loan. we will start with you, mark. >> absolutely. thank you. i want to thank speaker pelosi for putting this together. i want to thank all of the of for coming out on a smell it -- snowy san francisco date. [laughter] we've been told we should get us know when we go back outside. not sure what to expect. second, i thank speaker pelosi for all the work she did to support the jobs act and before that, the stimulus bill, the original american recovery act bill that allows sba to be able to besba landing more available to small businesses. very important piece of our tools that we have in this really very difficult time for small businesses to get access to credit. finally, i want to find the rest of the folks here, my colleagues on the panel. it is the case that sba works with these organizations to try to help small businesses understand how to get credit and fine tools to be able to do that. sba programs cover a wide range, and i will talk about this range of lending and the kinds of things

loan. we are a financial institution. but if you come to us for a loan and we think there is potential for one, we will provide business advising as well as a loan. to give you a sense of who we reach, we are really seeking to lind to traditionally underserved communities. for example, 35% of our borrowers are hispanic or latino. 22% african-american. 60% free mail, and 30% immigrant. -- 60% female. types of businesses -- we will make loans as small as $500 and as large as $100,000. they can range from home-based very small businesses like child care, people selling in the flea market, on up to janitorial, landscaping, restaurants, dry cleaners, and in some cases, small manufacturers. we sometimes bridges of it in even larger transactions if we think there's community benefits, we might wind collectively with the city's working solutions fund or with another lender. so far, -- and we work throughout the bay area. we work in four bay area counties, said francisco obviously being one of the i

the sba loan program covers a range of small loans down to $25,000 and large loans up to $5 million, so it is a very wide range. can be used for a variety of uses -- debt refinancing, building acquisition, working capital, so it can be used for a wide range of things from a small business point of view. as you heard, we do guarantees for about 90 or 100 banks in the country -- or in the bay area. about 3000 nationwide. there is a lot of lenders that do some sba lending. first thing you want to do is deal with the bank. if they are not able to make the loan by themselves, then go to our website, which is www. sba.gov, and look for the local page to see the local san francisco financing sources. but before you do that, the takeaway message here is that before you go to a bank, make sure you are cleared to do that. you do not want to go to a bank looking for financing for your business and ask them a question that will immediately give them a sense that you are not ready. you go to a bank and say, "how much can i borrow?" they will tell you, "i do not know, but probably not from us." yo

but these are loans. they don't take into consideration the fact that loans get paid back and most of the money has been used for successful programs. they are working on absurd assumptions. experts reviewing the loan poet foalio made it clear -- portfolio made it clear that d.o.e. will likely be paid back from the loans they put out. i support the loan guarantee program. i don't support this bill because i don't think we ought to end it, but this bill does not end the loan guarantee program. it continues it for $30 billion-something. $34 billion they want to continue the program because they will then have a choice through this program to fund those solar energy projects and other projects that already have applications. but they won't be able to consider anything else that might produce new break throughs, might produce more jobs, might produce the future for this country in the energy area which is the future for our economy. so i just want people to understand this is all a sham. the republicans are j

down with an sba loan.se there's less risk for the bank because the government is basically cosigning the loan, they're willing to go a little bit further so the amortization will be farther ert out and you have to put less equity down. however, people have the misconception that the rates are always cheaper with sba but that's not true. so it depends what you're looking for. i would say a lot of times the sba is a great product if you're eligible and you can get it. >> are there any downsides? is there more paperwork? does it take longer? >> there's a lot more paperwork. sometimes the rates can be higher. is the sba 7-a loan it's generally a floating interest rate. i think there's a lot more upside. >> when you go in the banks can take a little bit more risk on you but you're still going and you're applying for a loan from the bank. so some things you need to look at. you say first make sure you're in good standing with the state. >> that's right. a lot of people don't realize until right before close that

so many people think they are getting an sba loan and they forget you are getting a bank loan backedthe sba. appreciate it. >> thanks for having me. >>> whether we con we come back talk about what you want to do when you develop a smart phone app. the ceo of chobani says a business owner needs to wear many hats. on every one of our cards there's a date. a reminder... that before this date, we have to exceed expectations. we have to find new ways to help make life easier, more convenient and more rewarding. it's the reason why we don't have costumers. we have members. american express. welcome in. >> in 2005, he came across a classified ad for an old yogurt plant. he seized the opportunity to create chobani. today, the brand is the number one selling greek yogurt in america. we caught up with the founder and ceo to get his insight on the importance of wearing many hats and investing in the heart of your company. in this, learning from the pros. >>> in the early days, i was the cheese maker, the salesperson, the manufacturer. you become a manufacturer, a sales guy, a finance guy, a mar

>> 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 fo

with them and loan sign and a notary usually has no clue of what is in that loan and it's all part of the scheme we like to call it and then we go here we start looking at wideout and then we have a consultant fee. we see a consultant fee on the mortgage that should set off red flags that there's not really any consultants are on a mortgage or a sale that should have been one fee to rise mortgage this mark murphy is apparently someone we need to investigate and find out exactly who he is and why he got seventy eight hundred dollars on a small these people basically project we took this woman's home that she's been living in for over fifteen years and thinking that it's hers where it was actually never it was her since one thousand nine hundred three the fraud and deception that was built into these transactions was a necessary part of the transaction in order to generate the profits. wall street doesn't do mortgage lending what wall street dead was package sell repackage and resell mortgages making what was a small housing bubble a gigantic housing bubble and making what became an ame

on the loan amounts. the most we can do -- in terms of other qualifications, again, this is a loan program, loan fund. these are not grants. they are credits. we will look at the capacity to avoid loan payments and also the totality of the situation, taking into consideration whether there are legal fees or remediation fees that need to be paid. but i will say that we want to be an alternative for folks that cannot obtain financing from a bank. this may be a combination of that. maybe they need to go to a bank and get something and we can fill the rest or if they get decline by a bank, we can come in and assist with financing. >> [inaudible] you can only do so much to get people here. that is why we are asking for help from not only our media partners, but those of you in the room. people do not often come to ask for assistance until they are hit with a lawsuit. until they receive a complaint letter or a threat of being sued, they do not take the issue very seriously. by that time, a lot of your investmen

itself just get them to sign on the dotted line if they were happy with the numbers you have a loan. how many ms mo but over time with one say basically what we do is we sometimes have more issues and several other issues but what i want to do is show the signature of that and. what we're finding out is eighty percent of the people don't even know that while asians are. this is a signature on her one basically which is right here. and then have this signature here which is your actual signature which shows a completely different signature it doesn't take to me an expert to figure out that there's something terribly wrong here someone gets to set a set a loan docs and they're usually probably two to three inches thick and there might be fifteen or twenty really pertinent disclosures that follows you to worry about ok and they're very good in there and i don't know what they're signing and usually they'll send out a notary to sign the loan with them and one sign in the notary usually has no clue of what is in that loan and it's all part of the scheme we like to call it and then we go h

. >> she now owns more than $146,000 in loans. the student loan lender sally mae, that is how she was able to attend carolina university. >> that will leave the office -- that will be the money. they are acting like loan sharks, coming after you. >> five months after she graduated, she got daily calls to her cell phone. in less than a month, she counted 370 phone calls. as many as 25 and one day before she started blocking the calls. it all coincided with very minimal payments, oftentimes $50. they wanted 1400's month, which nearly equals her salary. >> i understand they want their money and i understand that completely. i am trying to think of what the expression is. you can't get blood from a turnip. >> she may just be a victim of the boom of the project student loan market which started to really take off the very year she graduated from high school. the fault rates have spiked significantly. $8 billion. that represents 850,000 individuals do loans >> student that is the elephant in the room. >> we are not sure if we will find

made in the united states were liar's loans wow that means over two million fraudulent loans per. a year being made by the lenders with one hundred and twenty agents to look after it i want to play. something that elizabeth warren said last week at the democratic national convention warren of course the democratic candidate for senate in massachusetts and formerly headed up the consumer financial protection bureau take a listen i'm here tonight to talk about hardworking people people who get up early stay up late cook dinner and help out with homework people who can be counted on to help their kids their parents their neighbors and the lady down the street whose car broke down people who work their hearts out but are up against a hard truth the game is rigged against them let's talk about that hard truth i mean here's a lizabeth war in a major face in national politics these days. putting this on the table like idea why aren't more people saying this well we have both major parties trying to downplay the role of fraud in finance because finance is the leading source of financing f

failed to adequately mop tore the loan guarantee -- monitor the loan guarantee. the company hemorrhaged cash throughout the year 2010. when the warnings came to fruition and solyndra was out of cash in the ought tomorrow of 2010, the obama administration doubled down on its bad debt, bad bet restructuring solyndra's loan in early 2011 and putting wealthy investors at the front of the line ahead of taxpayer, which was a clear violation of the energy policy act of 2005. right up to the bankruptcy filing, the administration was willing to take extraordinary pressures to keep solyndra afloat for political reasons and ensure the first loan guarantee was not going to be a failure. the investigation also showed that the d.o.e. failed to consult with the treasury department as simply required by the energy policy act prior to issuing a conditional commitment to solyndra and that treasury didn't even play a role in simply reviewing the restructuring. the no more solyndra act will correct this by ensuring treasury is actively involved in the loan process to protect our tax

we pay the mother's loan. so far in the microphone ancestry, have to stress, these are isolated cases. these are the worst cases. the report has only uncovered cases in one region of one country. whether there are other parts of india where this has happened or other countries. >> some grants for hope. some of them are fighting back, such as occurred in nicaragua. can you tell us about how many people are standing for themselves? >> it was an interesting case. did not really make it to the mainstream media. over -- able to present a version of accounts which generally boil down to the leftist politically motivated corrupt governments who allowed a revolution to happen. it was manley bland on the government's. the -- what happened was two banks attempted to imprisoned 39 repaying clients in the north of nicaragua. they managed to get these people imprisoned and their families resist -- rebelled and picketed. eventually it led to a little revolution. eventually this attracted the attention of the next door town

they don't want any more loans. they can't make the cash flow. so a $1,000 injection of cash is really helpful. >> we use the money for like to fix the store, to like get what we need, like displays or like decorations for the church. >> we use the microgrant dollars for at the time was to more signage, redo our menus. our menus before was not professional. it was more of a homemade menu. >> i used it to purchase about 30 handmade senegalese drums which we use to offer free drum lessons every sunday. >> this man worked as masseur and part-time cook. his loan brought him closer to being able to live as an artist. he used a computer to make prints easier than making his originals. >> tell me that again? >> $140, and $70,000. >> some day he hopes to live off sales of originals. >> so you've sold three originals so far. >> yes. >> over how many years? >> all my life. [ laughter ] >> not surprisingly, he sells about ten times that number of prints per year. one microgrants client who's closer to her lifelong goal is chante holmes. she opened a laundro

but they have to pay back with that treasury bond they have to get a treasury bond to pay back the loan eventually part of this is market fundamentalism this is what this is the church of wall street and jamie dimon and others giving their blessing to collateral that is junk i mean they could just open up the sluice gates of e-bay and just have the junk pouring from attics of america into the balance sheets of these various banks and say that's the collateral missing a lower rate of securities they're not securities it's just pure garbage it's a toxic waste dump it's a fukushima nuclear disaster poisoning the pacific ocean tuna fish as collateral it's the equivalent of transforming garbage into gold if the old album is dream doesn't work of course not you're just adding more debt on top of debt on top of debt you're deferring the day of reckoning by a few months but you're guaranteeing a bigger to me this is a fine neutral nucular bomb maker well exactly many are now asking whether it's averting risk or actually just transform. and hiding it so let's turn to this quote from darryl duffy

i do agree that there are people out there who should be getting loans that are not getting loans. i do not think it has anything to do with what governor romney pointed to. what it has to do is questions like how are we going to be enforcing them? that is something we put up more clarity on in the last few months. it is starting to make a difference. it is things like that that are immediate issues and not rules that would apply to future loans. what i hear more from the lending industry is let's make sure we get this right rather than rushing into a decision or finalizing these rules and the way that does not make sense. >> speaking of congress, i think everybody expects there to be a big debate after the election into next year about the budget and tax policy. there are some housing issues wrapped up in that. do you think that congress should scale back or eliminate the mortgage interest deduction as part of that? what other housing related issues are relevant? >> i have said this before. i think this is not the time to be questioning the fundamental pieces of whether it is the

they don't want any more loans. they can't make the cash flow. so a $1,000 injection of cash is really helpful. >> we used the money for to fix the store, displays, you know, decorations for the store. >> we used the micro-grant for, at the time, more signage. >> i used it to purchase 30 handmade senegalese drums, which we use to offer free drum lessons every sunday. >> reporter: salvador de montesinos works as a masseur and part-time cook to make ends meet. his $1,000 grant brought him closer to the goal of earning a living as an artist. he was able to buy a machine to make prints, which are much easier to sell than his very high priced originals. >> this is $140. this is $70,000. >> reporter: tell me that again? >> $140, $70,000. >> reporter: some day, he hopes to live off original sales. so, you've sold three originals? >> yes. >> reporter: over how many years? >> all my life. ( laughs ) >> reporter: well, surprise, he sells about ten times that number of prints per year. one microgrants client who's closer to her lifelong goal is shantae holm