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 i

that was in 2009 when the revolving loan fund was launched. so the demand for capital is apparent. working solutions gets about 20-25 loan inquiries a month. each loan is for about $25,000. so each month we are looking at $550,000 in inquiries. this need for recapital station is a critical component to our commercial district strategy. we need $1 million because of the volume of capital to relaunch is significant. in 2009 when the revolving loan fund launched, over 283 inquiries were asked of working solutions. if we only set aside $700,000 or so, that wouldn't be enough. we definitely need the $1.5 for small businesses. as you know, access to credit is critical for start up for micro enterprises and small businesses. our office has an outreach play. we will be working with the small business assistance center, as well as the neighborhood economic development organizations, the renaissance centers, urban solutions, sbdc's, as well as the new job squad. they will be reaching out to the neighbors across the city. getting the word out. the revolving loan fund's requirements and tournam

of $1,283,000 would fund about 55 loans, each by the requirements of the loan are to generate at least one job for low to moderate income workers for a total of 51 new jobs in its infant sysco. at the bottom of page 85, we pointed out that as of the riding of the report, there has not been an overall independence valuation of the program. in addition, as of the writing of this report, neither the office of economic workforce development nor the working solutions are below the moderate income jobs that have been created under the program, even though there is a requirement that each loan produces at least one job. so, on page 6 of our report we see that there has not been an independent evaluation of the program. there is currently a total of $768,000 in funds available to continue the small business program. that would be approximately 31 additional loans. we consider the approval of these general fund monies to be a policy decision for the board of supervisors. supervisor chu: thank you. supervisor avalos: just one question. office of economic and workforce development, i feel like th

the revolving loan fund's requirements and tournament are flexible. the business must be located in san francisco, have limited or no access to bank loans. then they will be able to create or retain at least one full-time job per $25,000 loan made. that job must be made available to a low to moderate income person. the terms of the loan are up to $25,000 for start ups, up to $50,000 for existing businesses. it would be a five-year term and the interest rates are between 4% and 6%. only working solutions offered loans for this size with such favorable underwriting criteria and terms in the city. >> loan uses are just as flexible. inventor, capital, purchases, machinery, start up costs and lease hold improvements. a little about our working solutions administrator. working solutions was expected in a competitive r.f.p. process back in 2009 to administer the loan fund. working solutions pretty much handles the entirety of the lending process, for deal flow, loan writing and loan services. also having the loan fund in the non-profit bank's balance statemen

looking at the loan guarantee program overall, is it important for the country to maintain a loan guarantee program to assist with development and deployment of new technologies in the energy area? if so, how do you propose in this budget, how does the administration propose that we move forward with that? >> first, senator, let me say that if you look at the loan guarantee program, the 1703, the 1705, atvm parts of the loan program overall it helped unleash about $40 billion of investment in these industries in projects like the two new nuclear reactors being built in vogel. it helped ford do a major retooling to build cars that, despite at the detroit auto show several months ago, really revolutionary, wonderful cars that could be sold worldwide. there are many, many aspects of this loan program which have really helped bring back a lot of what we were famous for for a century. it helped stimulate the deployment of many renewable energies. the list goes on. now, that loan program, the 1703 lon program is continuing. the atvm program is continuing. we still think those are worry projects.

we also provide loans throughout the bay area. we have been continually funding loans throughout the bay area. we have been funding with loans other than city loan funds. other than the county's we're working in, we have been able to proceed if there were additional city funds at better rates, 4% to 6%, having more businesses come forward. when we initially launched the fund, 280 businesses can afford that were interested. i suspected that we would have a similar number come out. supervisor chu: this is a question for the city department. i know that we have been working with working solutions for some time. why would we continue to capitalize with one organization to capitalizere-fee it out? can you speak to that? as well as the 15% administrative costs? the way that i see it, we are charging anywhere from 4% to 6% and a very low interest rate. over time, i've would imagine that you, amy, that we have capitalized the loans at one time and can put that money back out into multiple uses. sounds like we will be eating away at that, a

the list goes on. now, that loan program, the 1703 loan program is continuing. the atvm program is continuing. we still think those are worthy projects. going forward, we do see a need as part of an overall plan to finance projects. projects, for example, where you have a solid technology like on shore wind technology is very solid, a known technology, a way of financing it so we can deploy these with power purchase agreements low risk. there are other -- so that's one part. there are other parts i think that really could help drive it forward. bloomberg new energy finance just completed a study about a month ago summarizing what happened in 2011 and projections for 2012. they said, if -- and they looked at all forms of energy, new, gas turbines, coal, wind, solar all the way down the line. they said if you have 10% finance, borrowing charges for all these forms of energy, wind today -- and this is wind on a site that's a four site, not a six site. it's a moderate site, within 10% or 15% of the cost of the loss form of energy today which is new gas, and we expect

everyone wants the loan guarantee program to work in the right way. we do not want to waste taxpayer money. as far as i can tell, you have professional people making judgments on the basis of the information they had. with 20/20 hindsight, we can say they made some mistakes. they committed money to companies they should not have committed money to. there was private investment in the company. it was not just the government making a mistake. private investors also made mistakes. some of the same spat -- same facts to private investors made. >> why not have your committee respond in order to have your side of the argument out there publicly on the loan guarantee program? >> secretary chu has done a good job in his testimony for making this case on why this is an important program. they want to continue to have a loan guarantee program. i do not just want to provide another forum for political attacks. to the extent that there are recommendations coming out of this report that are useful and that we should be considering legislation on, it is appropriate

we have given $431,000 to the revolving loan fund at below market rate. for 160 years, we have helped businesses thrive, through the gold rush days, through the technology boom, and now through the economic recovery, especially here in the bay area. we know when we revitalizes small businesses, we create jobs. and that is what we need here. that is what this partnership is all about. if we do not have successful communities, we know we cannot be a successful corporation. it is with great pleasure that wells fargo partners with the city. we are also good partners with working solutions, have done many things with them. we are so happy they are involved in this partnership. we, at wells fargo dedicated to partner with the city of san francisco to make this once again the thriving community that it has always been. again, thank you for being here today. [applause] >> finally, i want to introduce the executive director of working solutions, along with -- where is brenda? the owner of the restaurant, who i think will be coming forward. >> good morning, such a p

if the loans

bank that if you make a loan to a small business, the business is not able to pay the loan, the sba will pay the bank a share of that long, typically 75% or 80%. a bank like wells fargo, for example, which is the largest sba lender in the country. when the lender makes the loan to you, they come to us and say that your business, for a variety of reasons, may not be strong enough to get a loan without a guarantee. it might be a business that is too young or is a type of business -- say, restaurants -- that are a little riskier than they want to deal with, or you do not have the kind of collateral a lender is looking for. "an sba lender will be able to make the loan with a guarantee that sba will be able to provide. we probably will about 225 sba loans this year. at any point in time, we have about 1500 loans in san francisco that are sba loans. a lot of them are restaurants because that is one of the areas that is very typical because it is a riskier business. but a lot of people in san francisco see that as an opportunity for them as well. we also partner with the golden gate restau

the idea that non recourse loans, the way you describe it, loans that you get without having yourself personally liable is not the way it works. you should assume you will guarantee the loan regardless of the structure of your business. the good news, though, for businesses like you are describing, internet business, is that the capital requirements for that type of business is generally small. you are able to get yourself further along and share in revenues with a smaller amount of credit need. that is where we see a lot of businesses and personal service or internet business get started, and generate revenues and be able to show growth without needing any capital, like a brick and mortar business might. >> my name is terry said. i have a retail business in san francisco for 22 years. i have a 5 04 -- 504 loan. it took me three years to get. we need more capital. i tried to get a line of credit from wells capital. i was decline. where does someone like myself go? i have a loan, i need additional funding. >> did you try through the sba? >> i already have an sba loan. i went to wells f

that is the ability to repay your loan. if we are going to be looking at a debt service, we look at a percentage of 1.25. for start-ups, we like to see startups near 1.25, generally closer to 1.5. the fifth c is collateral. i will put it to you this way. on a startup, we like to say 25% to 30% in the form of cash or real estate that has fungible equity in it. a purchase of real estate will count as collateral. pretty much, at wells fargo, we have this process streamlined. i am the front end. after i review the alone, i put it together, put it into underwriting. they will review the file and see if there is a loan file. then you have the of loan) who works with you through the end. so the average time for a 7a loan, which is my focus, about 35, 45 days. if there are other things that need to be looked at, 45 days to 60 days. we are preferred lending partner. we are able to approve a loan up front, close the loan, and then we go back to get the guarantee. i do not have the exact numbers. i should. i do not know how many loans

the loan has been made. so the loan has been made. and when we're talking about loans that are made and guaranteed by freddie mac or fannie mae, they're guaranteed by the government, they're guaranteed by the u.s. taxpayer. so a lot of economists are coming out and saying, look, if we're already on the hook for these loans, why does it make sense to make it harder for those people who refinance when by refinancing they're going to lower their mortgage payments? so that's going to two two things. it's going to make it more likely for them to keep paying the mortgage because instead of 1500 a month it's 1200 a month. it becomes more affordable. and it puts an extra 300 bucks in their pocket to help the economy. so don't confuse this with oh somebody is going out to buy their first house and they don't have a job and they've got a crazy loan. that's not what this is about. host: our guest, chris arnold joining us from boston, jesse joining us from new york city to talk about their story released this week. freddie mac beths against americ

the chairman asked you questions about the loan guarantee program. i appreciate the fact that we will be having a hearing when we return from the recess. i am one who believes there is a useful role to be played in the financing and the deployment of our advanced energy technologies and the loan guarantee program can be helpful. we need to make sure we get it right. the question i would ask you this morning, we can certainly work around your schedules. but will you make yourself available to come testify at the hearing when we are -- when we're able to schedule one? >> there's several hearings. there's going to be one in the house, one in the senate. if this committee wishes me to appear, i will appear. >> i would think it would be helpful and i would certainly welcome you there. let me ask you about hydropower. i mentioned that in my opening statement. this is one of those areas when we're talking about renewable resources. i certainly classify hydropower as a renewable resource and want to work to make sure that that is clear in our policies here. b

more than 75% of the loans had violations within three or more subject areas. is not that we found -- these loans did not have one thing wrong with them. they had many things wrong with themç across different subject areas, across different parts of the foreclosure process. that goes further to substantiate the conclusion we made, which is that the foreclosure process in the merit -- california, which is basedçn laws dating back over 100 years, no longer adequately regulates the current mortgage market. these laws were promulgated before there were things like securitization and real estate capital markets. we are not here to indict the mortgage industry or to say that all people who lost their home did not deserve to lose their home. certainly, there was a reckless borrowing. there were good actors with in the mortgage industry that have just been caught up in a situation where the boom in production of the originations could not stand the ultimate pressure on the for closure system in california once the boom turned into a slump. >> thank you. i know we have

it's been going forward with the project assuming they'd get this loan guarantee. but they're running out of time. they may have to sell themselves to a french company. my first is the sage loan guarantee was going to be submitted to the credit committee on august 23rd, but it was stopped. why is the department of energy continuing to delay closing and executing the sage loan guarantee? >> senator, as you know, first, yes, i'm very aware of the company. actually the technology was developed by the laboratory that i used to be the director of. i know about it and it is very good technology. senator, you'll also know that i can't really speak of the particulars of a loan. this is confidential information. we'd be willing to work with sage and get them to talk to you on what they would be willing to divulge. but it has to go through them. we can't really talk about the details of why. >> okay. i've been going through them and going back and forth, as you know, with d.o.e. and the white house on this. the treasury department reviewed the loan guarantee portfolio conclud

, ies, perkins loans, named after a loan serving 1980 chairman of the house committee on education carl perkins from kentucky. perkins loans are administered by the u.s. department education and will haved at a low interest rate of 5%. 5,500 a year for college. $8,000 for graduate school. mr. obama wants continue to increase the funding for perkins from $1 billion a year to $8 billion year that is a 700% taxpayer buildout. >> here's a trick question for you. think outside the box. do i know what that means, pat, think outside the box? what makes college lisa affordable for today's middle class? >> it's a supply and demand situation. you got to have a ba degree, it seems, to get a good job. everybody knows that. socially if you have not gone to college and didn't get a ba disagree our considered a semi sec class accident so there are probably half of america's young desperate to get into college that is the demand side. but a lot of professors have enorm russ salaries and -- enorm russ salaries and teach ago assistance in there and the huge pots of feder

1703. >> well, the bulk of the 1703 loans are applicants. we would expect to have been people like vogual -- like the vogual project. and the sequestration projects. and there is some concern there because -- and we're working with the companies. we have low gas prices. so that affects the business decisions, and so we're worki working -- you've got it right. we actually -- we didn't request more funds except for the management of the program because we do have funds available. now, in terms of carbon capture sequestration what we are finding is that there are companies who are willing to invest because these -- this requires a lot of matching funds from companies. willing to invest in that part, if there would be a utilization aspect to the carbon capture where the department of energy would pay for the measurement, the monitoring verification of where the carbon dioxide is going. we could help all those things are necessary and capturing sequestration project. we could help with the capture technologies that would be needed to capture carbo

loans. -- lawns. existing and stirrups percentages. here are some of the businesses that have received the loans. of the 28 anything from caring services out of time, animal services, and children's toys, children's education, if you know 18 rapids, granola. and mission cheese and cake coquette. they create great wedding cakes. this shows the this tradition. it is distributed across san francisco. we still want more in improved such as the southeast sector and perhaps more in district 4 and 7. and this last slide is inspired by commissioner dwight about san francisco. out of the 283 here make their products in san francisco locally. and heliotrope provides men and women with skin-care and fragrances. that is the end of my presentation. i'm available for any questions you might have. >> i just want to thank you for the presentation. i am happy this is followed by recognition. during my time on the commission, i saw this program from inception. it was a critical time in our economy. this one piece that help people move forward and develop these business plans. of course i am going to support this. i

the '9ers secure their final loan. we'll tell you how the project is being paid for and when the '9ers hope to have their first kickoff. >>> attack ads. of the president is targeted by a new republican campaign. >> typical washington. >> we'll tell you how a former bay area company got pulled into the middle of it. >>> new details on the 49ers' stadium plan in santa clara. the 49ers hope for a groundbreaking soon on the new stadium. today, the team secured a massive loan from the nfl owners. the '9ers say it was the final step toward making a new stadium a reality. >> this means that we are fully funded for santa clara, and we are building a football stadium. >> '9ers team president jed york says the stadium is a go. >> this is obviously an unprecedented day for the san francisco 49ers. >> the stadium will cost more than a billion dollars. today, the final part of the funding came in. the '9ers already had an $850 million loan approved by three banks. today, the nfl added another $200 million loan. the city of santa cla

at quicken loans, we provide you with proactive updates on the status of your home loan. ls ensure that you're always in the loop. one more way quicken loans is engineered to amaze. normal.re that you're always in the loop. ♪ activia love your new normal or its free. >> live, local, latebreaking. this is a wbal-tv 11 news update. >> it is going to be a nice day. partly to mostly sunny skies expected. temperatures will be above average. we should be able to sneak into the low 50s. another storm system tomorrow. rainshowers in the forecast for thursday. dry on friday and ♪ >>> fashionistas unite. this is a big week as designers show off the latest lines at new york's fashion week. we'll give you a chance to see some of the hottest looks strutting down the runway this week on "today." wow! dr. seuss! "cat in the hat". >> it's the mad hatter. >> we'll see you how to transform that look to the street. >> thing one and thing two. >> it's not too late to plan a presidents' weekend getaway. whether you are looking for romance or some place for the family we have affordable last-mi

at 3% for the rest of the, you know, life of the loan. >> it's a payment that can be made on just his wife's salary. >> where he have contracts with every major lender in the country. they're on site there. that contract says if we can show the mortgage sun affordable they can go as long autos -- low as 2% fixed rate for the life of the loan. >> and the loan amount can also be dropped. if you're in the market to buy a home, you should drop by. naca offering some astounding mortgage deals. >> we've been here in the past just helping people save homes. but in addition to us trying to save homes, we're helping people who want to buy a home. we lend money on the best of the terms. no down payment, bank pays closing costs. no points or fees. and we like to say michael most people who got in trouble with loans in this country didn't have our mortgage. >> naca rolling into the cow palace friday remaining through monday. most major banks and lenders will be there and they've agreed to help. now if you want to get in on this go to our web site. i'll hook you in. remember, it's free, costing yo

so it's not only -- certainly if you look at the loan agreements that we have, there are very careful milestones the company has before the next part is metered out. but in addition to that, as noted in the cylinder case, there was a very, very rapid change in the whole ecosystem. the price dropped by roughly 80% in three years, one quarter to one-fifth of what the solar month modules are doing. when that happened, there was very rapid technology occurring during that time and continued to develop. the bad news is that not all companies are -- >> are you laying blame for that disaster on things that occurred in china? how about oversight of -- >> i'm saying that when prices vary that much in a commodity product that a lot of companies can be swept up by that. >> well, that's all the more reason for oversight -- >> i agree with you. >> -- to the point of my question -- >> i agree completely. >> we are continuing to monitor what was approved. >> right. and as the economic and the business changes, if there is that -- effectively something like that happened, we have to be very, very con

types of loans that banks are making. there is the big loans because they are the profitable ones. so in that regard, this is why we pass this small business lending bill, where the feds were lending community banks money that they used to pay t.a.r.p. money back but then they made the loans that we were expecting for them to make. so given that scenario, do you think that it is still important and meaningful role for the federal government to play in providing lending programs that will fill that gap that exists from the private sector? >> well, we've had a good relationship -- the fed has had a good relationship for the fsb, small business administration. there was a crisis that gave them more flexibility and more funding. that might be an area worth looking at. >> under your leadership, the fed has significantly increased its commitment to transparency. holding more press conferences and releasing interest rate forecast for the first time in its history. while this policy tools are good for the financial markets and wall street fir

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 investment

it looks like you went from 7% to 4%, but actually the old loan was paid off completely and the new loan starts at the new rate. for the holders of the old loan, the payments have stopped. so freddie mac, by retaining the interest rate portion of the securities, has really retained this distilled, concentrated exposure and vulnerability to prepayment to refinancing when people refinance their mortgage. host: because the money is being made, and more of it, when the interest rates are higher? guest: that is part of it, exactly. that is a main part of it. a lot of the securities involved people with very high mortgages, 6.5%, 7% mortgages, way above the prevailing rates right now. freddie mac seems to have chosen a lot of those high mortgages to create the securities, and that makes more money for freddie mac. host: chris arnold, is this a deliberate ploy by freddie mac to do this? guest: well, we are not alleging that freddie mac did anything illegal. nothing in our report turned that out. there is a fire wall between the investment side of the business and the side of the business that m