GOOD AFTERNOON AND WELCOME TO
THE JOINT LEGISLATIVE HEARING
HOSTED BY ASSEMBLY BUDGET TO
FOR COMMITTEE FOUR ON STATE
ADMINISTRATION IN THE ASSEMBLY
COMMITTEE ON JOBS ECONOMY
DEVELOPMENT AND THE ECONOMY
TODAY WE WILL BE DISCUSSING
THE STATE'S SMALL BUSINESS
CREDIT INITIATIVE AND INCLUSIVE
ECONOMIC GROWTH OUR HEARING
IS LOCATED IN ROOM FOUR THREE
SEVEN AT THE STATE CAPITOL AND
PANELISTS ON THE AGENDA ARE
APPEARING IN PERSON AND REMOTELY
USING ONLINE TECHNOLOGY WE ARE
ACCEPTING PUBLIC COMMENT AT THE
END OF THIS HEARING BOTH IN THE
HEARING ROOM AND ON THE PHONE
THE PHONE NUMBER IS CONNECTED
ON THE COMMITTEE WEBSITE AND
SHOULD ALSO BE ON THE SCREEN
IF YOU ARE WATCHING OVER THE
INTERNET THE TOLL FREE NUMBER IS
EIGHT SEVEN SEVEN SIX NINE TWO
EIGHT NINE FIVE SEVEN THE PUBLIC
ACCESS CODE IS ONE THREE ONE
FIVE FOUR THREE SEVEN IF YOU
ENCOUNTER ANY PROBLEMS PLEASE
CONTACT THE ASSEMBLY BUDGET
COMMITTEE AT NINE ONE SIX THREE
ONE NINE TWO ZERO NINE NINE
AND A STAFF MEMBER WILL ASSIST
YOU WE ENCOURAGE THE PUBLIC TO
PROVIDE WRITTEN TESTIMONY BEFORE
THE HEARING PLEASE SEND YOUR
WRITTEN TESTIMONY TO BUDGETS OF
FOUR AD ASM DOT CA DODGY OVIH
AND J. E. D. E. AT
ASM DOT CA DODGY OB
OUR WORK IN BUDGETS OF FOUR HAS
BEEN FOCUSED ON HELPING SMALL
BUSINESSES SURVIVE CHALLENGING
ECONOMIC TIMES THROUGHOUT THE
PANDEMIC FOR THE PAST TWO YEARS
OUR SUBCOMMITTEE WORKED IN A
VARIETY OF GRANT PROGRAMS TO AID
OUR CALIFORNIA SMALL BUSINESSES
MICRO BUSINESSES AND THE BROADER
ECONOMIC DEVELOPMENT COMMUNITY
THROUGH OUR WORK WITH THE
GOVERNOR'S OFFICE OF THE SMALL
BUSINESS ADVOCATE WE CREATED
A STRONGER NETWORK OF SMALL
BUSINESSES THROUGHOUT THESE
GRANT PROGRAMS IN MY DISTRICT
AT THREE THOUSAND TWO HUNDRED
AND ONE SMALL BUSINESSES WERE
AWARDED GRANTS AND I WOULD
LIKE TO ENSURE THAT ANY FUTURE
PROGRAM BUILDS UPON THIS NETWORK
NOT JUST IN MY COMMUNITY BUT
ACROSS THE STATE OF CALIFORNIA
THESE PROGRAM SHOULD TAKE
THE NEXT STEPS TO CONTINUE
SUPPORTING SMALL BUSINESSES
AS WE TRANSITION INTO A POST
PANDEMIC RECOVERY ECONOMIC
RECOVERY OUR HEARING TODAY
WILL FOCUS ON THE STATE SMALL
BUSINESS CREDIT INITIATIVE OR S.
S. B. C. I. CALIFORNIA IS TO
RECEIVE AN ESTIMATED ONE POINT
TWO BILLION DOLLARS WHICH IS
SIX TIMES THE AMOUNT WE RECEIVED
IN ROUND ONE WE ARE HERE TO
DISCUSS THE PROGRAM WITH OUR
PARTNERS WITH THE SHARED GOAL
OF MAKING THE PROGRAM STRONGER
MORE TRANSPARENT AND MORE
ACCESSIBLE TO WOMEN AND PEOPLE
OF COLOR I LIKE TO TAKE THIS
OPPORTUNITY TO WELCOME ASSEMBLY
MEMBER CERVANTES HARD CHAIR OF
THE ASSEMBLY JOBS COMMITTEE AND
ASK HER TO PROVIDE SOME OPENING
REMARKS THANK YOU TO CHAIR
CARILLO FOR JOINTLY CONVENING
THIS HEARING ON THE STATE'S
DEPLOYMENT OF THE ONE POINT ONE
BILLION AND SMALL BUSINESSES
CAPITAL AND HOW THESE PLANS
CAN PLAY A ROLE IN CREATING
OPPORTUNITIES FOR INCLUSIVE
ECONOMIC GROWTH AS WE ALL KNOW
KOBE NINETEEN DISPROPORTIONATELY
IMPACTED SMALL BUSINESSES WOMEN
AND PEOPLE OF COLOR WITHIN
A FEW SHORT WEEKS TWO POINT
SEVEN MILLION CALIFORNIANS
WERE WITHOUT A JOB AND IN THE
ENSUING MONTHS IT IS ESTIMATED
THAT OVER NINETEEN THOUSAND
BUSINESSES CLOSED FOR MANY
CALIFORNIA THE PANDEMIC SERVE
TO DEEPEN ALREADY SIGNIFICANT
ECONOMIC AND SOCIAL DISPARITIES
WELL WE NEED TO ACKNOWLEDGE
THAT CALIFORNIA HAS ALREADY
IMPLEMENTED A RANGE OF GRANTS
AND PROGRAMS TO ADDRESS SOME
OF THE STATE'S MOST IMMEDIATE
SMALL BUSINESSES ISSUES THERE'S
STILL SO MUCH MORE TO BE DONE
AS A CHAIR OF THE ASSEMBLY
JOBS COMMITTEE I BELIEVE
THAT S. S. B. C. I. FRIENDS
CAN PLAY A CENTRAL ROLE IN
CATALYZING A NEW COMPREHENSIVE
AND INTEGRATED APPROACH TO
SMALL BUSINESS DEVELOPMENT AND
ENTREPRENEURSHIP THESE FUNDS
PROVIDE A UNIQUE OPPORTUNITY TO
PROACTIVELY ALIGN AND DEPLOY OUR
FULL ARSENAL OF SMALL BUSINESS
FOCUSED RESOURCES DURING TODAY'S
HEARING I AM LOOKING FOR TO
UNDERSTANDING MORE ABOUT HOW
THE STATE PLANS TO STRATEGICALLY
ROLL OUT AND EXPAND S. S.
B. C. I. FUNDED FINANCING
PROGRAMS IN COORDINATION WITH
OTHER PUBLIC AND PRIVATE SMALL
BUSINESS RESOURCES TO ENSURE
THAT S. S. B. C. I. FUNDS REACH
HISTORICALLY UNDER CAPITALIZE
COMMUNITIES AND BUSINESS
OWNERS I DO BELIEVE HOWEVER
THAT WE MUST GO FURTHER TODAY
NEEDS TO BE THE BEGINNING OF
A CLEAR EYED AND LONG TERM
CONVERSATION ABOUT THE SYSTEMIC
BARRIERS THAT EXIST WITHIN
TRADITIONAL ENTREPRENEUR MODELS
FOR THERE TO BE REAL EQUITY
WE MUST RETAIN AN OPENNESS TO
UPDATING STATE PROGRAMS AND
SERVICES IN ORDER TO BREAK
DOWN THESE OBSTACLES TO UPWARD
MOBILITY WEALTH CREATION
NEIGHBORHOOD LEVEL RESILIENCY
FOR ALL CALIFORNIANS INCLUDING
MARGINALIZED GROUPS AND UNDER
INVESTED AREAS OF OUR STATE
LET ME CLOSE AGAIN BY THANKING
HER CAR YOU GO FOR SUPPORTING
OUR TWO COMMITTEES AND WORKING
TOGETHER ON THIS IMPORTANT
ISSUE AND TO ACKNOWLEDGE OUR
SHARED COMMENT TO ANSWERING
THESE MONIES ARE USED TO
CREATE AN INCLUSIVE INCLUSIVE
ECONOMIC RECOVERY AND NOT
SIMPLY REINFORCE HISTORIC
DISPARITIES SO THANK YOU AGAIN
THANK YOU ASSEMBLY WOMAN AND
I'M REALLY EXCITED TO BE ABLE
TO HAVE THIS HEARING THAT ALIGNS
BOTH THE POLICY PERSPECTIVE
WITHIN THE JOBS COMMITTEE AS
WELL AS THE BUDGET OPPORTUNITIES
WITHIN BUDGET I WANT TO PASS
IT ON NOW TO ASSEMBLY MEMBER
CHOI VICE CHAIR OF THE ASSEMBLY
JOBS COMMITTEE FOR ANY OPENING
REMARKS IF YOU WOULD LIKE SIR
THANK YOU I'M STEVEN CHOI I'M
HAPPY TO JOIN THIS EXCITING
M. AND A VERY IMPORTANT --
COMMITTEE ACT JOBS AND ECONOMIC
DEVELOPMENT HAS BEEN MY LONGTIME
INTERESTED -- EVEN WHILE I WAS
A SERVING AT THE CITY OF IRVINE
THE CITY CITY COUNCIL MEMBER
AND MAYOR OF THAT CITY
I LOOK FORWARD TO WORKING
WITH ALL OF YOU AND HOPEFULLY
I CAN MAKE AN IMPACT THANK YOU
THANK YOU ASSEMBLY MEMBER CHOI
LET'S BEGIN WITH OUR FIRST
PANEL OVERVIEW OF CALIFORNIANS
S. S. B. C. I. PROPOSAL AND
I BELIEVE WE HAVE PRESENTERS
HERE IN THE ROOM WILL START WITH
OUR STATE TREASURER MISS PANAMA
ALL ONE I'M SORRY ONE MOMENT
WE WILL ACTUALLY BEGIN WITH THE
LEGISLATIVE ANALYST'S OFFICE AND
THEN MOVED TO THE TREASURER'S
OFFICE MY APOLOGIES --
-- MADAM GESTURE YOU'RE WELCOME
TO IT YOU'RE WELCOME TO COME TO
TO BENTON IS B. READY
MY APOLOGIES THIS IS NOT SIMON
SAYS WE'RE JUST GETTING USED
TO BACK TO GETTING BACK TO
IN PERSON THANK YOU -- MISTER
WEATHERFORD PLACING AND A GOOD
AFTERNOON MY NAME IS BRIAN
WHETHER FORD AND I'M WITH THE
LEGISLATIVE ANALYST'S OFFICE
OKAY I GOTTA GET CLOSER
TO WE'VE BEEN
ASKED TO PRESENT A HIGH LEVEL
OVERVIEW OF SMALL BUSINESS BUT
WE'VE BEEN ASKED TO PROVIDE
A HIGH LEVEL OVERVIEW WITH
SMALL BUSINESS LENDING AND TO
INTRODUCE SOME CONCEPTS THAT
WE HOPE WILL HELP TO FACILITATE
THIS HEARING TODAY ON THE
STATE'S TOP SMALL BUSINESS
CREDIT INITIATIVE WE ALSO
RECENT KEY ISSUES FOR YOU TO
CONSIDER AS YOU THINK THROUGH
THESE PROGRAMS IN CALIFORNIA
OUR OFFICE ARE PREPARED THIS
HANDOUT AT THAT HAS BEEN
DISTRIBUTED TO YOU IT'S ALSO
AVAILABLE ONLINE AT ALL BE
REFERRING TO IT AS I GO ALONG
TURNING TO THE FIRST PAGE WE
BRIEFLY EXPLAIN SOME OF THE
REASONS THAT SMALL BUT THAT NOT
ALL BUSINESSES HAVE EQUAL ACCESS
TO CREDIT AND THIS PROVIDES A
MOTIVATION FOR THE PUBLIC LOAN
PROGRAMS THAT WILL BE DISCUSSING
TODAY IN GENERAL LENDERS PREFER
TO MAKE LARGER LOANS AND TWO
THERE IS PRE EXISTING CUSTOMERS
THERE ARE VARIOUS REASONS FOR
THIS PRIMARILY EVALUATING A
BUSINESS'S CREDITWORTHINESS IS
COSTLY AND THESE PREFERENCES
SERVE TO REDUCE RISK AND THE
-- THE COST OF MAKING THESE
LOANS IN ADDITION DIFFERENT
KINDS OF LENDERS SPECIALIZE
IN DIFFERENT KINDS OF LENDING
SO FOR EXAMPLE SOME BANKS
FOCUS ON CONSUMER LENDING
SUCH AS A MAKING MORTGAGES
AND CREDIT CARDS AVAILABLE TO
THEIR CUSTOMERS SOME LENDERS
SPECIALIZE IN DEVELOPING A
DEEP UNDERSTANDING OF CERTAIN
INDUSTRIES AND GEOGRAPHIC
REGIONS AS A WAY TO GAIN A
COMPETITIVE ADVANTAGE SO FOR
EXAMPLE SOME LENDERS FOCUSED ON
REAL ESTATE DEVELOPMENT LENDING
ALL OF THIS IS TO SAY THAT SOME
BUSINESSES WILL FIND IT EASIER
TO BORROW FROM SOME LENDERS
AND OTHERS HOWEVER WITHIN
THIS CONTEXT RESEARCHERS
FOUND THAT MINORITY OWNED AND
WOMEN OWNED BUSINESSES FACE
DISPROPORTIONATE CHALLENGES WITH
LENDING WE MOST RECENTLY OBSERVE
THIS WITH THE PROCESSING OF
THE FEDERAL PAYCHECK PROTECTION
PROGRAM -- ABALONES IN TWENTY
TWENTY WELL IN SOME CASES
THE THIS DISCRIMINATION OCCURS
BECAUSE OF THE PREFERENCES FOR
LARGER LOANS IN PRE EXISTING
RELATIONSHIPS IN OTHER CASES A
LOAN OFFICER MAY DISCRIMINATE
AGAINST A SMALL BUSINESS OWNER
BASED ON THE LOAN OFFICERS
IMPLICIT OR EXPLICIT BIAS
COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTIONS ARE ONE RESPONSE
TO THIS LENDING ENVIRONMENT
SIGNIFIES OUR MISSION BASED
PRIVATE LENDERS TO PROVIDE
FINANCIAL PRODUCTS AND SERVICES
TO PEOPLE AND COMMUNITIES THAT
ARE UNDERSERVED BY TRADITIONAL
FINANCIAL MARKETS THEY'RE ABOUT
A HUNDRED INTENSITY IF I WAS
IN CALIFORNIA AND THE FIGURE ON
PAGE TWO SHOWS THAT THE CITY
IF I COULD BE A BANK OR CREDIT
UNION -- BUT IN MOST CASES THEIR
LOAN FUNDS N. SIGNIFIES MAKE
DIFFERENT TYPES OF LOANS JUST
LIKE OTHER LENDERS TO LOANS TO
BUSINESSES ACCOUNT FOR ABOUT
TWENTY PERCENT OF THE TWO POINT
THREE BILLION IN LOANS MADE BY
SIGNIFIES AND TWENTY NINETEEN
BALSAM SIGNIFIES ACCEPT
DEPOSITS FROM THE CUSTOMER'S
SIGNIFIES ME ALSO RECEIVED
GRANTS AND INVESTMENTS FROM
OTHER BANKS AS PART OF THEIR
COMMUNITY REINVESTMENT ACT
OBLIGATIONS AS WELL AS FROM
PHILANTHROPIC INSTITUTIONS
AND FROM THE US TREASURY CDFI
FUND THE STATE PROVIDE SOME
FUNDING TO FOR EXAMPLE IN
TWENTY TWENTY THE LEGISLATURE
PROVIDED TWENTY FIVE MILLION
DOLLARS IN GENERAL FUND TO CSI'S
A WIDE VARIETY OF OTHER PUBLIC
LOAN PROGRAMS EXIST TO HELP
SMALL BUSINESSES GET LOANS AND
TO SUPPORT SMALL BUSINESS LOAN
LENDERS THE FIVE MOST COMMON
TYPES OF PROGRAMS ARE LISTED
ON PAGES THREE AND FOUR OF
YOUR HAND OUT AN OFFER THIS
BY FAR THE MOST COMMON TYPE
OF CREDIT ENHANCEMENT OUR LOAN
GUARANTEES A LOAN GUARANTEE IT'S
BEEN A PUBLIC AGENCY AGREES TO
PAY THE RENT THE OUTSTANDING
BALANCE IN THE EVENT THAT A
BORROWER DEFAULTS ON THE LOAN
UNDER A LOAN PARTICIPATION
PROGRAM A PUBLIC AGENCY DIRECTLY
LENDS MONEY TO BUSINESSES IN
PARTNERSHIP WITH THE PRIVATE
LENDER UNDER A COLLATERAL
SUPPORT PROGRAM A PUBLIC AGENCY
PLEDGES CASH COLLATERAL FOR
BARBERS THAT OTHERWISE LACK A
SUFFICIENT AMOUNT OF COLLATERAL
I CAPITAL ACCESS PROGRAM INSURES
A PORTFOLIO LOANS INSTEAD OF
JUST THE INDIVIDUAL LOANS AND
THE LAST PROGRAM ON THE LIST IS
A BIT DIFFERENT FROM THE OTHERS
VENTURE CAPITAL PROGRAMS OUR
SPECIFICALLY TARGETED TO HELPING
UNDERSERVED BUSINESS START
UPS -- WITH THEIR EQUITY NEEDS
WELL NOT LOANS THESE INVESTMENTS
ARE NOT CONSIDERED GRANTS AND
THE PROGRAM EXPECTS TO EARN
A RETURN ON ITS INVESTMENTS
MOST LOANS WILL BE REPAID OVER
TIME AND AS FAR AS REPAY THEIR
LOANS THE FUNDS ARE TYPICALLY
REDEPLOYED A RECYCLED TO SUPPORT
ADDITIONAL LENDING ACTIVITY IN
THOSE PROGRAMS TURNING
NOW TO PAGE FIVE OF A HAND OUT
WE THINK IT'S HELPFUL CONTEXT
FOR YOU TO KNOW THAT THE FEDERAL
GOVERNMENT HAS MANY PROGRAMS
THAT AID SMALL BUSINESSES AND
SUPPORT SMALL BUSINESS LENDERS
THE LARGEST BY FAR IS THE SMALL
BUSINESS ADMINISTRATION SEVEN
A PROGRAM IT'S A LOAN GUARANTEE
PROGRAM AND IT GUARANTEED ABOUT
A HUNDRED AND FIVE BILLION
DOLLARS IN LOANS -- IN ITS
PORTFOLIO IN TWENTY TWENTY ONE
ESPN HAS A VARIETY OF OTHER
SMALLER LOAN PROGRAMS AS WELL
THAT A MORE TARGETED AND IN
ADDITION THE U. S. DEPARTMENT
OF AGRICULTURE HAS ON SOME
PROGRAMS TO HELP BUSINESSES
IN THE AGRICULTURAL SECTOR
THE STATE TO HAS LONG OPERATED
LEARN PROGRAMS THE SMALL
BUSINESS FINANCE CENTER WHICH
IS THE STATE'S LOAN GUARANTEE
PROGRAM AND IT'S LOCATED IN
I THINK THE EMPHASIS RUPTURED
ECONOMIC DEVELOPMENT BANK
WHICH IS UNDER THE GOVERNOR'S
OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT THE PRECURSOR TO
THIS PROGRAM WAS CREATED IN
NINETEEN SIXTY EIGHT THE SMALL
BUSINESS FINANCE CENTER WORKS
WITH SEVEN INDEPENDENT FINANCIAL
DEVELOPMENT CORPORATIONS THAT
IN TURN WORK WITH A CURRENTLY A
HUNDRED AND TWENTY ONE LENDERS
ACROSS THE STATE IN NINETEEN
AND TWENTY NINETEEN TWENTY
THIS PROGRAM GUARANTEED FOUR
HUNDRED AND SEVENTY LOANS WORTH
AROUND TWO HUNDRED AND FORTY
MILLION DOLLARS THE CALIFORNIA
POLLUTION CONTROL FINANCING
AUTHORITY THE C. P. CFA IS
UNDER THE STATE TREASURER'S
OFFICE AND THE C. P. C. F.
EIGHT MINISTERS A NUMBER OF
BOND FUNDED PROGRAMS --
WORK THEY'RE GONNA FOCUS ON TO
THE CAPITAL ACCESS PROGRAM FOR
SMALL BUSINESSES OR CAL CAP AND
THE COLLATERAL SUPPORT PROGRAM
CAL CAP IS A LITTLE PORTFOLIO
INSURANCE PROGRAM THAT HAS
TWENTY PARTICIPATING LENDERS
AND IN TWENTY TWENTY THESE
LENDERS AND ROLLED EIGHT
HUNDRED AND SIXTY SMALL
BUSINESS LOANS TOTALING ABOUT
TWENTY FOUR MILLION DOLLARS
AND THE COLLATERAL SUPPORT
PROGRAM CONTRIBUTE CONTRIBUTED
I'M SORRY SEVEN MILLION
DOLLARS -- IN TWENTY TWENTY
IN SUPPORT OF FORTY WOODLANDS
SO LET'S TURN NOW TO THE SMALL
BUSINESS CREDIT A NEW SHIFT
-- SS DCI THE FEDERAL
S. S. B. C. I. PROGRAM WAS
CREATED IN TWENTY TEN UNDER
THE US TREASURY WITH ONE
POINT FIVE BILLION DOLLARS
FOR STATES TO DEVELOP LOAN
PROGRAMS THAT ADDRESS THE
SMALL BUSINESS LENDING NEEDS
IN THEIR OWN STATES AND THE
FIGURE ON PAGE SEVEN SHOWS HOW
THESE FUNDS WERE ALLOCATED BY
THE STATE'S ACROSS THE VARIOUS
TYPES OF PROGRAMS YOU'LL SEE
THAT LOAN PARTICIPATION AND
VENTURE CAPITAL FUNDS WERE THE
MOST POPULAR TYPES OF PROGRAM
-- CAPITAL ACCESS PROGRAMS
WERE AMONG THE LEAST POPULAR
CALIFORNIA RECEIVED A TOTAL
OF ONE HUNDRED AND SIXTY EIGHT
MILLION DOLLARS FROM THE TWENTY
TEN S. S. B. C. I. PROGRAM AND
THESE FUNDS WERE SPLIT EQUALLY
BETWEEN THE SMALL BUSINESS --
FINANCE CENTERS LOAN GUARANTEE
PROGRAM AND THE C. P. C. A PHASE
CAL CAP AND COLLATERAL SUPPORT
PROGRAMS AND THESE FUNDS ARE
DISTRIBUTED IN THREE TRANCHES
BETWEEN TWENTY TEN AND TWENTY
SIXTEEN AND THE TABLE ON PAGE
EIGHT PROVIDE SOME SUMMARY
STATISTICS FOR THE S. B. C.
R. PROGRAM OVERALL NATIONALLY
AND FOR THE THREE PROGRAMS IN
CALIFORNIA AND YOU CAN SEE THAT
THE STATE CAPITAL ACCESS PROGRAM
SUPPORTED A VERY LARGE NUMBER
OF SMALL DOLLAR AMOUNT LOANS THE
AVERAGE LOAN WAS ABOUT THIRTY
EIGHT THOUSAND DOLLARS THEY CAL
CAP PROGRAM ALSO HAS A VERY HIGH
LEVERAGE RATIO COMMITTING TWENTY
TWO DOLLARS AND PRIVATE FUNDS
FOR EVERY ONE DOLLAR IN PUBLIC
FUNDING IN CONTRAST THE AVERAGE
LOAN SUPPORTED BY THE COLLATERAL
SUPPORT PROGRAM WAS ONE POINT
ONE MILLION DOLLARS AND MUCH
LARGER AND IT HAD A RELATIVELY
LOW LEVERAGE RATIO LESS THAN
THREE DOLLARS A PRIVATE FUNDS
FOR EVERY ONE DOLLAR IN PUBLIC
FUNDING THE LOAN GUARANTEE
PROGRAM WAS SOMEWHERE IN THE
MIDDLE THESE FIGURES IT SUPPORT
A WIDE RANGE OF OF LOANS --
AND AND DOLLAR AMOUNTS THE SPCA
EXPIRED IN TWENTY SIXTEEN BUT
AS WE KNOW WHY WE HEAR TODAY'S
RE AUTHORIZED LAST YEAR IN THE
AMERICAN RESCUE PLAN ACT THE
OTHER SPEAKERS GOING TO TALK
ABOUT THIS A GREAT DEAL SO ALL
I'M I'M NOT GOING TO ALL THE
DETAILS OF THIS NEW PROGRAM
RIGHT NOW BUT THERE ARE SOME
IMPORTANT CONSIDERATIONS TO KEEP
IN MIND FIRST THE TOTAL AMOUNT
OF FUNDING AS HAS BEEN MENTIONED
ALREADY IS MUCH LARGER THAN
THE TWENTY TEN S. S. B. C. R.
PROGRAMS ONE POINT TWO ALMOST
ONE POINT TWO BILLION DOLLARS
COMPARED TWO HUNDRED AND SIXTY
EIGHT MILLION IN THE FIRST FIRST
ROUND SO AS BEFORE THE FUNDS
ARE GOING TO BE DISTRIBUTED
IN THREE TRANCHES AND IN ORDER
TO MAXIMIZE FEDERAL FUNDS THE
STATE WILL NEED TO EXPAND EIGHTY
PERCENT OF EACH OF THE FIRST AND
SECOND TRANCHES AND THEN AS THE
STATE IS EXPANDING THESE FUNDS
THAT MUST COMPLY WITH OTHER
PROGRAMMATIC REQUIREMENTS WHICH
INCLUDE EXPANDING AT LEAST FORTY
NINE PERCENT OF THE FUNDING
FOR BUSINESSES THAT ARE OWNED
BY SOCIALLY AND ECONOMICALLY
DISADVANTAGED INDIVIDUALS
-- WHICH -- MYSELF AND OTHER
PRISONERS MAY REFER TO A
STUDY OR A CD I -- GRAMS
AND -- ALLS AND
-- ON AVERAGE ACROSS ALL THE
PROGRAMS THE FUNDS NEED TO
BE LEVERAGE FOR TEN DOLLARS
AND PRIVATE FUNDING FOR WEBER
ONE DOLLAR PUBLIC FUNDING SO
TO SOME EXTENT THESE VARIOUS
-- REQUIREMENTS WORK AT CROSS
PURPOSES WITH EACH OTHER TURNING
TO PAGE TEN WE HAVE SOME --
SOME SOME KEY ISSUES THAT WE
THINK -- FOR YOUR CONSIDERATION
AS YOU -- DEAL WITH THESE
THESE DIFFERENT REQUIREMENTS
SO THE FIRST IS THAT IMPROVING
ACCESS TO CREDIT FOR BUSINESSES
THAT WOULD OTHERWISE HAVE
DIFFICULTY GETTING A LOAN
-- QUALIFY FOR A LOAN COULD
MAKE IT CHALLENGING TO MEET
THE LEVERAGE GOALS AS THE
BARS OVER ALL RISK INCREASES
THE AMOUNT THAT MUST BE
OBLIGATED BY THE PUBLIC AGENCY
INCREASES AS WELL SO FOR EXAMPLE
THE STATE'S CORBETT NINETEEN
DISASTER RELIEF LOAN PROGRAM
REQUIRES THE SMALL BUSINESS
FINANCE CENTER TO ENCUMBER ONE
DOLLAR FOR EVERY TWO DOLLARS
THAT SLOAN BECAUSE THE PERCEIVED
RISK OF THESE LENSES HIGHER
AND THE S. S. B. C. I. PROGRAMS
MAY NEED TO ALLOCATE FUNDING
TO PROGRAMS THAT HELP OF HIGH
AND LOW LEVERAGE RATIOS TO MEET
THAT TEND TO ONE GOAL HOWEVER
-- PROGRAMS WITH HIGH LEVERAGE
RATIOS MAY IN SOME INSTANCES
-- BENEFIT BUSINESSES THAT
PERHAPS COULD HAVE QUALIFIED
FOR LOANS ON WITHOUT THE AID
SECOND THE GOAL TO EXPAND --
OBLIGATE THE FUNDING QUICKLY
COULD MAKE IT MORE DIFFICULT TO
ACHIEVE GOALS THAT HAVE A
HIGH LEVERAGE RATIO AND TO HELP
SMALLER BORROWERS SO IF WE JUST
WANTED TO OBLIGATE THE FUNDS
AS QUICKLY AS POSSIBLE WE MIGHT
FOCUS ON SUPPORTING THE LARGER
LOANS ON THREE PROGRAMS WITH
VERY LOW LEVERAGE RATIO GIVEN
THE AMOUNT OF FUNDING THAT IS
AVAILABLE IT WILL BE CHALLENGING
TO OBLIGATE THESE FUNDS QUICKLY
WHILE RAMPING UP THOSE PROGRAMS
LET CAL CAP THAT -- BENEFITS
THE SMALLEST BORROWERS BECAUSE
I HAS A VERY HIGH LEVERAGE RATIO
IN THE AVERAGE ABOUT SMALL SO
FOR THE NUMBER OF TRANSACTIONS
THAT YOU'RE DOING -- IT IT
DOESN'T USE AS MUCH OF THE FUNDS
RELATIVELY SPEAKING TO OTHER
PROGRAMS END UP PROGRAMS THAT
THESE PROGRAMS THAT BENEFIT
SMALL BOAT BUYERS ARE OFTEN
BUSINESSES THAT ARE OWNED BY
-- SOCIALLY AND ECONOMICALLY
DISADVANTAGED INDIVIDUALS WE
THINK THE STATE MAY WANT TO
CONSIDER WAYS TO SIMULTANEOUSLY
EXPAND SUPPORT FOR BOTH LARGE
BORROWERS AND PROGRAMS THAT
SUPPORT SMALL FARMERS BUT WE
WILL NEED TO DO BOTH AT THE SAME
TIME TO MEET ALL OF OUR SCHOOLS
THIRD YOU WILL WANT TO
CONSIDER YOUR TOLERANCE FOR
RISK SO THE DEFAULT RATES IN
THE EXISTING STATE PROGRAMS HAVE
HISTORICALLY BEEN SOMEWHAT LOWER
THAN THAT FOR THE SBA'S LOAN
PROGRAMS HOWEVER IS THE INFLUX
OF SS BCI FUNDING WILL
REQUIRE THE EXISTING PROGRAMS TO
TO GROW AND EXPAND THE NUMBER
OF OF BUSINESSES THEY SUPPORT HE
MADE SUPPORT LEADING TO HIGHER
RISK BORROWERS WHO MAY DEFAULT
ON THEIR LOANS AT HIGHER RATES
AND ULTIMATELY TO THE EXTENT
IT'S EXPECTED EXPANSION FOCUSES
ON IT CONTINUING TO IMPROVE
ACCESS TO CREDITS TO CREDIT FOR
BORROWERS WHO OTHERWISE WOULD
HAVE DIFFICULTY QUALIFYING
FOR LOANS A SOMEWHAT HIGHER
DEFAULT RATES MAY BE UNAVOIDABLE
LASTLY BE MINDFUL THAT THE SPCA
PROGRAMS WILL ALSO BE SUBJECT
TO U. S. TREASURY OVERSIGHT
REQUIREMENTS THREE TWENTY THIRTY
SO YOU MAY WANT TO CONSIDER HOW
YOUR OVERSIGHT OF THESE PROGRAMS
AND YOUR POLICY GUIDANCE TO
THESE PROGRAMS RELATES THE
FEDERAL OVERSIGHT DURING THIS
TIME SO FOR EXAMPLE YOU PROBABLY
WOULD WANT TO AVOID ADOPTING A
REQUIREMENT THAT MIGHT CONFLICT
WITH TREASURY GUIDANCE WE ALSO
SUGGEST THAT YOU LOOK AHEAD TO
TWENTY THIRTY AND BEYOND AND
BEGIN THINKING ABOUT HOW THE
FUNDS THAT ARE MADE AVAILABLE
FOLLOWING THE REPAYMENT OF
THESE LOANS ARE REDEPLOYED
AND RECYCLED THROUGHOUT THESE
PROGRAMS SO TO THIS END YOU'LL
LIKELY WANT TO ENSURE THAT
THE PROGRAMS ARE TRANSPARENT
THEY KEEP GOOD RECORDS AND FOR
EXAMPLE AVOID INTERMINGLING
STATE AND FEDERAL FUNDS TOGETHER
AND -- LASTLY --
CONSIDER THE APPROPRIATE LEVEL
OF ONGOING GENERAL FUND SUPPORT
IF ANY THAT WOULD BE REQUIRED
TO ALLOW THESE PROGRAMS TO
CONTINUE AS A AT A CERTAIN
LEVEL SO IN CONCLUSION YOU
WILL WANT TO NOT ONLY THINK
ABOUT HOW THE STATE CAN BEST
MEET THE REQUIREMENTS OF SS DCI
PROGRAM UP TO THE PROGRAMMATIC
REQUIREMENTS THE OF THE S.
S. B. C. AYE BUT ALSO HOW TO
MAXIMIZE AND HOW TO MAXIMIZE
THE BENEFIT OF FUNDS BUT ALSO
TO STRUCTURE THESE PROGRAMS
TO MEET YOUR POLICY OBJECTIVES
NOW AND IN THE FUTURE THANK
YOU FOR AND ALLOWING US TO
PARTICIPATE IN THE HEARING
THANK YOU MISTER WEATHERFORD
MUCH APPRECIATED I'M GOING TO
INTRODUCE THE REMAINDER OF THE
PANEL AND THEN FOLLOWED UP
WITH THE -- GIVE THE FLOOR
TO OUR STATE TREASURER SO
JOINING US FOR THE REMAINING
OF THE PANEL ON ISSUE ONE IS
OUR CALIFORNIA STATE TREASURER
FIONA MA AS WELL AS SCOTT
WOULD EXECUTIVE DIRECTOR OF
THE CALIFORNIA FOR STRUCTURE
AND ECONOMIC DEVELOPMENT
BANK OTHERWISE KNOWN AS I
THINK AND SHEILA TO BUY IS
DANIEL EXECUTIVE DIRECTOR
OF THE CALIFORNIA POLLUTION
CONTROL FINANCING AUTHORITY
OTHERWISE KNOWN AS CP CFA
MADAM TREASURE YOU MAY BEGIN
OKAY GREAT -- I'VE GOT SOME
HANDOUTS GOING AROUND BUT
THANK YOU VERY MUCH IT'S NICE
TO BE BACK AND TO SEE EVERYONE
-- OVER THE -- THE LAST TWO
YEARS OR THE PANDEMIC -- I
PERSONALLY DID ABOUT THREE
HUNDRED ZOOM WEBINARS -- TRYING
TO GET THE MESSAGE OUT ABOUT
FEDERAL STATE AND LOCAL AND ALSO
PRIVATE SECTOR RESOURCES THAT
ARE AVAILABLE AND SO AS PART
OF MY JOB IS A STATE TREASURER
AND MANAGING THE CAL CAP
PROGRAM WE ARE VERY SENSITIVE
TO MAKING SURE THAT UNDERSERVED
COMMUNITIES I GET THE NEEDED
INFORMATION I TOO STARTED OUT
AS A SMALL BUSINESS OWNER IS A
CPA -- PRESIDENT OF THE ASIAN
BUSINESS ASSOCIATION AND THAT'S
HOW I GOT INVOLVED IN PUBLIC
SERVICES REPRESENTING WOMEN
AND MINORITY SMALL BUSINESSES
SO THIS IS STILL VERY --
PASSIONATE PASSIONATE AREA FOR
ME AND SOMETHING THAT I FOCUS ON
REGARDLESS OF WHAT OPPOSITION I
HOLD SO TODAY -- TALKING
ABOUT -- THE TREASURE'S OFFICE
AND THE AYE BANK TEAMS WE WORK
VERY CLOSELY TOGETHER AND
WE SUBMITTED THE APPLICATION
FOR THE S. S. B. CI A TWENTY
TWENTY ONE FUNDING WHICH THE
FEDERAL GOVERNMENT CREATED
TO STRENGTHEN STATE PROGRAMS
THAT SUPPORT SMALL BUSINESS
FINANCING I DO WANT TO NOTE
THAT ON THE AT THE ROBUST ON MY
TEAM WAS ONE OF THE AUTHORS
OF THE ORIGINAL S. S. B. C.
EYES AND SO WE HAVE BEEN WORKING
VERY CLOSELY WITH TREASURY ON
ROLLING OUT OF THIS PROGRAM
MAKING SURE THE GUIDANCE
IS RIGHT THE REGULATIONS
AND THAT THE INTENT OF THE
LEGISLATURE AND CONGRESS --
IS -- UNITE HERE TO AS WE
ROLL OUT LIKE THE LEGISLATIVE
ANALYST'S OFFICE SAID -- TO
-- TO MAKE SURE THAT WE ARE
ADDRESSING INCLUSIVE ECONOMIC
GROWTH THE SMALL BUSINESSES IN
UNDERSERVED COMMUNITIES --
SCOTT AND I ARE GOING TO TALK
A LITTLE BIT ABOUT OUR PROGRAMS
BUT I'M GONNA TALK ABOUT OUR
CAL CAP PROGRAM WHICH STARTED
IN NINETEEN NINETY FOUR ALMOST
THIRTY YEARS AGO THE LEGISLATURE
CREATED THE CAPITAL CALIFORNIA
CAPITAL ACCESS PROGRAM CAL CAP
FOR SMALL BUSINESS DURING THAT
TIME GOVERNOR PETE WILSON WAS
THE GOVERNOR HE REACHED OUT TO
AGENCIES TO SEE IF THEY WERE
ABLE FUNDS THAT COULD BE USED
FOR THIS CAPITAL ACCESS PROGRAM
FOR SMALL BUSINESSES MICHIGAN
HAD JUST STARTED A SUCCESSFUL
PROGRAM THAT THE GOVERNOR
WANTED TO MIRA FOR THE PEOPLE
OF CALIFORNIA THEN TREASURER
KATHLEEN BROWN VOLUNTEERED THE
STATE TREASURER'S OFFICE BECAUSE
WE HAD FUNDING THAT ACCUMULATED
FEES COLLECTED FROM TAX EXEMPT
BONDS ISSUED BY THE CALIFORNIA
POLLUTION CONTROL FINANCING
AUTHORITY ALSO KNOWN AS E. PC
AVE SINCE THE PEACE YET THEY
GENERATED THE FUNDS AND IS A
FINANCING AUTHORITY IT WAS THE
PERFECT PLACE TO START THE CAL
CAP PROGRAM IT REMAINS SELF
FUNDED UNTIL TWENTY TEN WHEN IT
RECEIVED A SIX MILLION DOLLAR
SUPPLEMENT FROM THE GENERAL
FUND IT THEN APPLIED FOR AND
RECEIVED AN ALLOCATION S. AS
BCI TWENTY ELEVEN UP FUNDS WHICH
THE LEGISLATIVE ANALYST TALKED
ABOUT THIS PROGRAM IS SERVED
OVER TWENTY THREE THOUSAND SMALL
BUSINESSES SINCE IT'S SINCE
IT'S INFECTIOUS INCEPTION THE
KALKA PROGRAM WAS INSTRUMENTAL
IN ALLOWING ALL OF THE S. S.
B. C. I. PROGRAMS COMBINE TO
REACH ITS LEVERAGE GOALS WITH
ITS INDEPENDENT LEVERAGE OF
TWENTY SEVEN TO ONE WELL ABOVE
THE ELEVEN TO ONE SUGGESTED
LEVERAGE CALIFORNIA DEPLOYED
MORE FUNDS THAN ANY OTHER
STATE IN THE NATION COMPLETELY
EXHAUSTING THE ONE HUNDRED AND
SIXTY EIGHT MILLION DOLLARS
WITHIN THE ALLOTTED TIME FRAMES
IT HAD THE LARGEST CAPITAL
ACCESS PROGRAM IN THE NATION
CALIFORNIA ALONE WAS RESPONSIBLE
FOR MORE THAN HALF OF THE TWO
HUNDRED AND FORTY THOUSAND JOBS
CREATED IN THIS NATION TO THE
SS BCI TWENTY ELEVEN
FIND THE CAL CAP PROGRAM
ENCOURAGES BANKS AND OTHER
FINANCIAL INSTITUTIONS TO
MAKE LOANS TO SMALL BUSINESSES
THAT MIGHT OTHERWISE HAVE
DIFFICULTY OBTAINING LOANS
FROM CONVENTIONAL SOURCES
SMALL BUSINESS OWNERS WHO
CANNOT OBTAIN FINANCING THROUGH
CONVENTIONAL METHODS MAY QUALIFY
FOR A CAL CAP LOAN THROUGH A
CAL KEPT LENDER WHICH FOR MANY
RESULT IN THE SMALL BUSINESS
OWNER SIDESTEPPING PREDATORY
LENDERS THE GAL KEPT TEAM
PREPARES AN ANNUAL REPORT TO
THE LEGISLATURE REGARDING CAL
CAP METRICS AND REPORTS AS
FAR BACK AS TWENTY TWO THOUSAND
ONE THEY ARE AVAILABLE ON
OUR WEBSITE I HAVE BEEN JUST
HANDED OUT THE LAST THREE
FOR TWENTY EIGHTEEN TWENTY
NINETEEN AND TWENTY TWENTY
AND THE TWENTY TWENTY ONE
WILL BE IN YOUR HANDS BY JUNE
THIRTIETH OF THIS YEAR IT IS A
MANDATE THAT WE REPORT -- ARE
-- BY RESULTS AND AS YOU CAN
SEE IN THE LAST FEW PAGES WHERE
ALL OF THE FUNDS ARE DEPLOYED
AND IT'S PRETTY MUCH DEPLOYED
IN EVERY SINGLE COUNTY IN
CALIFORNIA SO I'M SURE IF YOU
LOOK AT YOUR COUNTY YOU ALL HAVE
RECEIVED OR YOUR SMALL BUSINESS
OWNERS HAVE RECEIVED MONEY
THROUGH THIS PROGRAM THE GAL
GET PROGRAM HAS BEEN EMINENTLY
SUCCESSFUL AND HAS BEEN NOTED AS
EFFECTIVELY RUN CAL CAP PROGRAM
BY THE US TREASURY WHEN OTHER
STATES CONTACT THE US TREASURY
REGARDING THE STE ESTABLISHMENT
OF A CAPITAL CAPITAL ACCESS
PROGRAM THEY REFER THEM TO
OUR CALVET TEAM AT C. B. CFA
SO FAR THE TEAM HAS MET WITH
THEN SHARED BEST PRACTICES
WITH UTAH ILLINOIS AND NEW
YORK THE CAL KEPT TEAMS READY
TO EMPLOY THESE BEST PRACTICES
AND INCORPORATE LESSONS LEARNED
DURING S. S. B. C. I. TWENTY
ELEVEN FOR THE DEPLOYMENT
AS AS BCI TWENTY TWENTY ONE
IN CONJUNCTION WITH OUR BANK
PARTNERS AGAIN AND LIKE I SAID
WE COLLABORATIVE LEE APPLIED FOR
THIS MONEY AND IT WILL BE SPLIT
FIFTY FIFTY BECAUSE OUR PROGRAMS
ARE A LITTLE BIT DIFFERENT --
BUT WE ARE ALL VERY COMMITTED
TO MAKING SURE THAT WE ADHERE
TO THE FEDERAL GUIDELINES AND TO
PLAY THIS MONEY AS EFFICIENTLY
AND EFFECTIVELY AS POSSIBLE
SO THANK YOU VERY MUCH MANAGER
THANK YOU MADAM SECRETARY
DO WE HAVE -- IS MISTER
SCOTT WILL GOING TO BE MAKING
COMMENTARY IS HE ON
PROMOTE OKAY YES I'M
ON THE YOUR
PLEASE GO AHEAD
OKAY GREAT THANK YOU IN
TEARS KABEL TEST AND THAT THE
COMMITTEE I'M SCOTT MOVED SECOND
PROJECT I THINK IT'S PART GO BIZ
SERVES AS THE STATE'S GENERAL
PURPOSE TO THIRTY HOUSES THE
SMALL BUSINESS FINANCE CENTER
OUR MISSION INVOLVES PROMOTING
ECONOMIC DEVELOPMENT AND
REVITALIZING COMMUNITIES THAT
ARE CUT PRIORITIES EMPHASIZED
YOU GOT REACHING UNDERSERVED
COMMUNITIES AND ADDRESSING
CLIMATE CHANGE S. B. C. I.
A. KEY COMPONENT OF THAT WORK
LAST NOVEMBER AS MENTIONED
US TREASURY ANNOUNCED STATE
ALLOCATIONS A VECES PCI TWO
POINT OO AND CALIFORNIA RECEIVED
NEARLY ONE POINT TWO BILLION
LOCATION AND JUST WITH HAS
WITH S. B. CS ONE POINT NO
FROM THE PRIOR DECADE I THANK
AND THE STATE TREASURER'S
OFFICE ARE WORKING HAND IN HAND
TO ENSURE SUCCESSFUL IN THE
IMPLEMENTATION OF THESE FUNDS
SHORTLY WE EXPERIENCED RANCIC'S
US WITH THREE PROGRAMS OPERATED
UNDER ONE POINT OUT FOR TWO
POINT OH I BACK AND SEE PIECE
BY WEEKLY OVER THE PAST YEAR
JUST MET THE STATE PROPOSAL
AND TO PREPARE PROGRAMS
WE ARE JUST EMAILS
AND WE HELD A CERTAIN THE
MEASURE WILL JUST ONE MOMENT
WE'RE HAVING A LITTLE BIT OF
TECHNICAL ISSUES WITH YOUR
AUDIO MAN ASK IF YOU COULD
TURN OFF YOUR CAMERA SO THAT
WE CAN JUST HEAR YOU AND IF WE
CAN RAISE THE VOLUME OF SALES
OKAY -- YES
PLEASE GO AHEAD OKAY
WE HAVE BOTH A DEDICATED
WEB PAGES AND EMAILS AND WE
HELD A SERIES OF STAKEHOLDER
MEETINGS SINCE LAST APRIL
TO SOLICIT INPUT ACCORDING
TO INVEST FUNDS FOR MAXIMUM
BENEFIT AND AS QUICKLY AS
POSSIBLE IT'S POSSIBLE WE
SUBMITTED OUR APPLICATION TO
THE U. S. TREASURY ON FEBRUARY
FOURTH AND MARCH SEVENTH WE
WERE INFORMED OUR APPLICATION
ONE OF THE FIRST MINUTE IN
THE NATION WAS COMPLETE AND
UNDERGOING EVALUATION BY SUBJECT
MATTER EXPERTS IN ADVANCE OF
BEING CONSIDERED FOR APPROVAL
WITH US IS THE C. I. TWO POINT
OH WE GET CLOSER TO SPLIT FUNDS
EQUALLY BETWEEN I VACANCY BE CFA
CALIFORNIA RECEIVED AN EIGHT
HUNDRED TWENTY NINE MILLION
DOLLAR PIECE ALLOCATION AND
SIXTY SIX MILLION FOR VERY
SMALL BUSINESSES WITH UNDER TEN
POINTS BOTH OF THOSE ARE BASED
ON STATE UNEMPLOYMENT NUMBERS
WE ALSO RECEIVED A HUNDRED
EIGHTY SEVEN MILLION IN SETTING
FUNDS BASED ON OUR POPULATION
RESIDING IN CYDIA FIVE
INVESTMENT AREAS ANOTHER HUNDRED
MILLION A STUDY INCENTIVE
FUNDS WILL BE AWARDED FACE ON
EACH IN OUR TARGET PERFORMANCE
FIVE HUNDRED TO SIX SEVEN
MILLION FOR TRIBAL GOVERNMENTS
ACROSS THE NATION WERE ALLOCATED
SEPARATELY AND THERE REMAINS
A FIVE HUNDRED MILLION DOLLAR
TECHNICAL ASSISTANCE ALLOCATION
YET TO BE DISTRIBUTED -- FOR
THE APPLICATION DEADLINE OF
JUNE THIRTIETH OF THIS YEAR
TO BE SEATED S. S. B. C. I.
FUNDS A STATE MATCH IS NOT
REQUIRED HOWEVER THERE MUST BE
AT LEAST A DOLLAR FOR DOLLAR
MATCH FROM THE PRIVATE SECTOR
AT ALL TIMES ANY FINAL LEVERAGE
REQUIREMENT ATTEND THE ONE
ACROSS ALL OF OUR PROGRAMS
THEREFORE CALIFORNIA'S PHONES
SHOULD DRIVE AT LEAST TWELVE
BILLION DOLLARS A FINANCING
ACTIVITY TO SMALL BUSINESSES
OVER THE TEN YEAR LIFE OF THE
PROGRAM SO THE THREE
CRITICAL MILESTONES OF S. B.
C. I. ARE DEMONSTRATING A
REASONABLE EXPECTATION THAT
THE STATE'S AGGREGATE PROGRAMS
WOULD GENERATE A LOT OF RACIAL
OF LEAST TEN TO ONE MEETING
THE SENATE PERFORMANCE TARGETS
IN ORDER TO BE ELIGIBLE FOR
MAXIMUM INCENTIVE FUNDS IN
ACHIEVING THE DEPLOYMENT
REQUIREMENTS THAT EIGHTY PERCENT
OF FUNDS MUST BE REALIZED
WITHIN THREE YEARS TO BE
ELIGIBLE FOR EACH SUCCESSIVE
TRAGIC FUNDS FOR ASSISTANCE
YEAH I TWO POINT OH I THANK
INTENDS TO SCALE UP EXISTING
PROGRAM AND LAUNCH A NEW ONE
FIRST IS THE SMALL BUSINESS
LONGER T. PROGRAM THAT WAS
ESTABLISHED IN NINETEEN SIXTY
EIGHT AND WAS THE RECIPIENT OF
ASSISTANCE YEAH ONE POINT OH
FUNDS UNDER WHICH WE LEVERAGE
EIGHTY FOUR MILLION DOLLARS
TO SUPPORT OVER A BILLION
DOLLARS FINANCING ACTIVITY
THIS PROGRAM HAS CONTINUED TO
GROW TO THIS DAY AND INCREASES
ACCESS TO CAPITAL FOR SMALL
BUSINESSES BUT BY PROVIDING
GUARANTEES ON BANK LOANS IN
CASES WHERE LENDERS MIGHT NOT
OTHERWISE MAKE A LOAN OR ONLY
A PROHIBITIVE PROHIBITIVE
INTEREST RATES THREE HUNDRED
NINETY ONE MILLION WILL BE
ALLOCATED TO THIS PROGRAM
STAKEHOLDER INPUT TO DATE
WE HAVE NUMEROUS CHANGES AND
ENHANCEMENTS UNDERWAY SUCH
AS INCREASING THE GUARANTEED
CAP INTRODUCED MINISTRY TO
FUNDING TO OUR SEVEN NONPROFIT
FINANCIAL DEVELOPMENT
CORPORATION PARTNERS THEY
DO A GREAT JOB OF COVERING
THE ENTIRE STATE TREATING
A WEB BASED PORTAL TO CONNECT
SMALL BUSINESSES TO LENDERS
EXPANDING OUR CLIMATE TECH
GUARANTEE PROGRAM STATEWIDE
FROM ITS CURRENT HIGHLIGHTS
AND ALSO FOR FUNDING AND
A STREAMLINED PROCESS FOR
MICROLOANS FURTHER PROGRAM
ENHANCEMENTS ARE STILL UNDER
CONSIDERATION ALSO
DESPITE BROAD STATEWIDE COVERAGE
WITH A HUNDRED TWENTY ONE
PARTICIPATING LENDERS INCLUDING
THIRTY EIGHT SIGNIFIES WE
INTEND TO INCREASE PARTICIPATION
WITH MORE SIGNIFIES AND
ATTY MINORITY DEVELOPMENT
INSTITUTIONS TO BETTER REACH
DISADVANTAGED COMMUNITIES
SECONDLY I BAKED LASTEST
DEVILISH THE STATE VENTURE
CAPITAL PROGRAM ONE OF S.
B. C. ICE FIVE A LOT OF PROGRAMS
WELL CALIFORNIA DECLINED
THIRTY EIGHT OTHER STATES AND
JURISDICTIONS USE SS DCI ONE
DOLLARS TO SUPPORT VENTURE
CAPITAL CALIFORNIA OF COURSE
HAS AN ABUNDANCE OF VENTURE
CAPITAL BUT IT IS ALSO HIGHLY
CONCENTRATED DEMOGRAPHICALLY
AND GEOGRAPHICALLY WE
HAVE AN OPPORTUNITY TO APPLY
FEDERAL FUNDS TO CATALYZE THE
MORE INCLUSIVE VC ECOSYSTEM
FIVE POINT TWO HUNDRED MILLION
DOLLARS TO INVEST IN UNDER
REPRESENTED FUND MANAGERS
UNDERREPRESENTED ENTREPRENEURS
AND BUSINESS OWNERS GEOGRAPHIC
AREAS A CALIFORNIA THAT RECEIVED
LITTLE OR NO VENTURE FUNDING
THANK YOU CRIMINAL CLIMATE
EQUITY AND CLIMATE JUSTICE
THE VENTURE PROGRAM CAN ALSO
PROVIDE SMALL BUSINESSES NON
DEBT CAPITAL WHICH STAKEHOLDERS
NOTED AS AN IMPORTANT NEED
WHILE INITIALLY FAIRLY COMPLEX
TO ESTABLISH IT HAS OTHER
BENEFITS IT CAN LEVERAGE THE
PRIVATE SECTOR TO DISPERSE
LARGE AMOUNTS OF FUNDS
AND ENTAILS SIGNIFICANTLY
HIGHER PREDICABLE LEVERAGE
COMPARED TO THE OTHER PROGRAMS
I BET IS A FINANCIAL INSTITUTION
NOT A GREAT THING TO DO
AND THAT'S THIS BCI IS A
CREDIT PROGRAM NOT PROGRAM
WE TREAT ONE TIME APPROPRIATIONS
S. C. CAPITAL TO WATCH SUCH
PROGRAMS WITH THE PRIORITY TO
BUILD PERMANENT ECONOMICALLY
SUSTAINABLE SMALL BUSINESS
INFRASTRUCTURE FOR THE
STATE THAT CAN CONTINUE TO
RECYCLE WROTE AND SUPPORT
BUSINESSES WELL INTO THE
FUTURE JUST AS I THINK HAS
DEMONSTRATED IN THE PAST
S. B. C. I WAS BORN IN THE
AFTERMATH THE GREAT RECESSION
AND TWO POINT OH EMERGE
FROM THE WRECKAGE OF THE
COVER NINETEEN PANDEMIC
TO THE GREATEST ECONOMIC
DISLOCATION EVENTS IN OUR
LIFETIMES WE HOPE TO NEVER AGAIN
EXPERIENCE AND ECONOMIC CRISIS
OF THIS MAGNITUDE THAN THIS
IT'S THE NEXT S. S. B. C. I.
SEQUEL BUT IF SO I THINK REMAINS
FLEXIBLE AND ADAPTABLE TO BE
POSITION TO QUICKLY ACT WHEN A
NEED OR OPPORTUNITY ARISES TO
ADDRESS GAPS TO THE UNDERSERVED
TO REDUCE THEIR COST OF FUNDS
AND TO CROWD IN PRIVATE SECTOR
CAPITAL BY SHARING RISK THEREBY
INVESTING AND EQUITABLE RECOVERY
THANK YOU AND I LOOK FORWARD
TO ANSWERING YOUR QUESTIONS BUT
WILL FIRST TURN TO MY S. S. B.
C. I. PARTNER FROM THE TRACTOR'S
OFFICE SHEILA TOBIAS DANIELS
THANK YOU SCOTT THANK YOU PLEASE
GO AHEAD AS YOUR MICROPHONE ON
CAPITAL THANK YOU
SCOTT GOOD AFTERNOON
MY NAME IS SHEILA TOBIAS DANIEL
I AM THE EXECUTIVE DIRECTOR
FOR THE CALIFORNIA POLLUTION
CONTROL FINANCING AUTHORITY
I HAVE ONLY AROUND TWENTY ONE
YEARS OF EXPERIENCE WITH THE
STATE OF CALIFORNIA TWENTY OF
THOSE YEARS HAVE BEEN FOR THE
CALIFORNIA STATE TREASURER'S
OFFICE I INITIALLY BEGAN
IN THE PUBLIC FINANCE DIVISION
HEADING UP THE TRUSTEE TEAM
-- SERVICING THE DEBT FOR A
CALIFORNIA'S ON DEBT PORTFOLIO
AFTER THAT I REPRESENTED THE
TREASURER'S OFFICE AT FISCALE
-- ONE OF THE LARGEST AND
MOST DYNAMIC TECHNOLOGY
IMPLEMENTATIONS IN THE STATE'S
HISTORY -- I MADE
SURE THAT ME AND MY TEAM A
SHIRT IN THE STATE TREASURER'S
OFFICES FUNCTIONALITY SO
THAT IT PERFORMED AS IT
SHOULD BE IN THAT SYSTEM
ON OCTOBER FOURTH I JOINED
CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY AS
THEIR EXECUTIVE DIRECTOR
CP CFA SUBMITTED ITS APPLICATION
ON THE STRENGTH OF TWO EXISTING
PROGRAMS ARE CALIFORNIA CAPITAL
ACCESS SMALL BUSINESS PROGRAM OR
CAL CAP WHICH AS YOU'VE
HEARD IS A LOAN LOSS RESERVE
PROGRAM THAT ACTS AS PORTFOLIO
INSURANCE FOR LENDERS THE
PROGRAM ALLOWS LENDERS
THE COMFORT TO LEND TO SMALL
BUSINESSES THAT FALL SHORT
OF QUALIFYING FOR TRADITIONAL
LENDING THIS HELPS ALLOW
UNDERSERVED SMALL BUSINESSES TO
OBTAIN CREDIT THAT CAN HELP THEM
GROW AND EXPAND THEIR BUSINESSES
THE COLLATERAL SUPPORT PROGRAM
IS DESIGNED FOR SMALL BUSINESSES
THAT CANNOT OBTAIN CREDIT
SPECIFICALLY DUE TO COLLATERAL
SHORTFALL THESE LOANS ARE
USUALLY SHORTER TERMS AND LARGER
AMOUNTS AS THE L. A. -- REPORT
DETAILED -- THEN THE CAL CAP
LOANS COLLATERAL SUPPORT PROGRAM
LOANS CAN BE ENROLLED FOR
MAXIMUM OF FOUR YEARS AND CAL
CAP FOR SMALL BUSINESS LOANS
CAN BE ENROLLED IN THE PROGRAM
FOR TEN YEARS THE COLLATERAL
SUPPORT PROGRAM WAS CREATED
AT THE PROMPTING OF THE U. S.
TREASURY DURING THE FIRST ROUND
S. S. B. C. I. FUNDS AND IT HAS
BEEN A VERY SUCCESSFUL PROGRAM
THAT CONTINUED ON EVEN AFTER
THE S. S. B. C. I. PROGRAM
WAS EXHAUSTED IN TWO THOUSAND
EIGHTEEN THE RECAPTURE RECYCLE
FEATURED THAT WAS MENTIONED
IN THE L. A. -- REPORT IS
ACTUALLY A FEATURE THAT ANSWERED
THE CALL OF THE U. S. TREASURY
TO INCREASE SUSTAINABILITY FOR
PROGRAMS AND SO THIS IS A KEY
FEATURE ALLOWING US TO CONTINUE
TO HELP SMALL BUSINESSES AND
PROVIDE LOANS TO THEM WELL
AFTER ALL OF THE FUNDS ARE
-- EXPANDED FROM THE ORIGINAL
ALLOCATION BUT AS THE L.
A. O. REPORT -- POINTED OUT
THIS POT OF MONEY THAT
WE'RE RECEIVING THIS TIME IS
CONSIDERABLY LARGER THAN THE
FIRST ITERATION APPROXIMATELY
SIX TIMES THE AMOUNT AS THE
FIRST SO SOME OF THE THINGS
THAT WE PLAN TO DO AT C. P.
CFA -- WE ARE PLANNING TO
ADD A THIRD PROGRAM ALONG
PARTICIPATION PROGRAM FOR WHICH
WE ARE CURRENTLY IN TALKS WITH
POTENTIAL FINANCIAL PARTNERS
FOUR PROGRAM IDEAS AND PROPOSALS
WE ARE HOPING TO IMPLEMENT
THE LAW PARTICIPATION PROGRAM
WITHIN THE FIRST CHARGE OF THE
TEN YEAR PROGRAM AND THAT'S
WITHIN THE FIRST THREE YEARS
THE PROGRAM GUIDANCE IS PRETTY
CLEAR TO BE ABLE TO DO THAT WE
JUST WILL AMEND OUR APPLICATION
TO REFLECT THE THIRD PER
GROUP PROGRAM AND ASKED TO
ADJUST THE ALLOCATION TO THE
OTHER PROGRAMS AND REALLOCATE
FUNDING TO THE NEW PROGRAM AND
WE PLAN TO MAKE SURE THAT WE
SELECT -- AN APPROACH THAT
WILL ALLOW US TO DEPLOY LARGE
AMOUNTS OF NINETY TWO ASSISTS
CALIFORNIA SMALL BUSINESSES
ANOTHER THING THAT WE'RE HOPING
TO DO -- IN ENGAGING OUR LENDER
COMMUNITY REGARDING SS DCI ONE
POINT -- WE LEARNED THAT A LOT
OF OUR LENDERS WERE NOT A FAN
OF THE RECAPTURE FEATURE FOR
THE -- CAPITAL -- ACCESS PROGRAM
SMALL BUSINESS PROGRAM THIS TIME
WE HAVE SUSPENDED THE RECAPTURE
FEATURE FOR THIS PROGRAM --
LET ME EXPLAIN TO YOU A LITTLE
BIT ABOUT WHAT THAT FEATURE
DOES THE RECAPTURE FOR CAPITAL
ACCESS PROGRAM SMALL BUSINESS
WAS INTRODUCED TO SUSTAIN
THE PROGRAM WHEN THE FEDERAL
FUNDING INDEED SINCE THE LOAN
LOSS RESERVE ACCOUNT IS THE
POOL FOR ALL OUTSTANDING LOANS
THERE IS A CALCULATION DONE
ANNUALLY BASED ON THE NUMBER OF
OUTSTANDING LOANS AND RESERVE
BALANCE WITH THE BASELINE
RESERVE LEVEL TO DETERMINE
THE AMOUNT OF RECAPTURE
SO THIS TIME WE HAVE SUSPENDED
THAT ALLOWING US TO --
DEPLOYMENT GREATER AMOUNT OF
FUNDS -- ALSO ANOTHER THING
THAT WE'RE LOOKING TO DO -- AS
WE MAKE EFFORTS TO EXPAND OUR
NETWORK ANOTHER NEW FEATURES
THAT WE'VE IMPLEMENTED IT --
IN THE PROGRAM IS THAT WE WILL
MATCH THE BORROWER'S FEE OF
UP TO THREE POINT FIVE PERCENT
AND THE LENDERS CONTRIBUTION
OF UP TO THREE POINT FIVE
PERCENT WE WILL MATCH THOSE
CONTRIBUTIONS COMBINED WITH
THE CONTRIBUTION A PROGRAM
CONTRIBUTION UP TO SEVEN PERCENT
SO THIS TIME WE WILL BE
CONTRIBUTING A LARGER AMOUNT OF
MONEY LENDERS IN OUR PROGRAM
THAT WE'VE SPOKEN WITH ARE
EXCITED ABOUT THIS NEW FEATURE
I'M SOME DIFFERENCES IN THE
CPA CFA AND I'VE BEEN PROGRAMS
WHILE BOTH PROGRAMS ARE DESIGNED
TO HELP SMALL BUSINESSES
THE CP CFA PROGRAM LENDERS
LOAN ON AVERAGE IS A SMALLER
DOLLAR AMOUNT AND THEREFORE
-- IT REACHES A LOT OF LOW TO
MODERATE INCOME COMMUNITIES
-- CP CFA CAL CAP HISTORICALLY
REACHES MORE CREDIT CHALLENGE
AND UNDERSERVED COMMUNITY
COMMUNITIES AND -- THE I.
BANK AND COLLATERAL SUPPORT
PROGRAMS -- THEY REACH
THEIR GEAR FOR LARGER LOANS
-- WE EACH HAVE A PORTFOLIO
OF LENDERS THAT USE AND
TRUST THE PROGRAMS AND FIND
ONE OR THE OTHER PROGRAMS TO
DOUBLE FOR THEIR NEEDS -- WITH
-- CPC FHA LENDING SMALLER
AMOUNTS AND I BANK LENDING
THE LARGER AMOUNTS ALL LENDING
NEEDS ARE COVERED -- WE LIKE
TO THINK THAT OUR LOAN PRODUCTS
DON'T COMPETE THEY COMPLEMENT
ONE ANOTHER -- ANOTHER THING
THAT I'D LIKE TO ADD IS THAT
WE WILL NOT BE COMMINGLED FUNDS
WE DO NOT COMMINGLED FUNDS
-- AT THE CURRENT TIME THE
STATE FINE FOR THE KALKASKA
ON PROGRAM SMALL BUSINESS
PROGRAM IT WILL BE CLOSED
AND WE WILL ONLY BE DEPLOYING
FINDS OUT OF THE FEDERAL FUNDS
WHEN THE ACCESS PCI FUNDS ARE
DISBURSED FOR THE STATE OF
CALIFORNIA I LOOK FORWARD
TO THIS ENDEAVOR WITH MY
COLLEAGUES SCOTT WE WE'VE
BEEN WORKING TOGETHER OUR
INTER AGENCY AGREEMENT IS --
CONFIGURED SO THAT IT ALLOWS
US TO -- WORK AS A WELL OILED
MACHINE WE CAN WE WILL BE ABLE
TO MOVE FUNDS BACK AND FORTH
BETWEEN THE AGENCIES SO THAT
UNDER PERFORMING PROGRAMS
MONEY CAN BE ALLOCATED TO THE
PROGRAMS THAT ARE PERFORMING
-- HIGHER PERFORMING AT THAT
TIME SO WE LIKE TO THINK OF
OURSELVES AS TEAM CALIFORNIA AND
-- WE MEET BI WEEKLY TO WORK
TOGETHER AND -- WE'RE CONFIDENT
THAT WE CAN HANDLE THE
DEPLOYMENT OF THESE FUNDS AND
GET SOME MUCH DESERVED AND
NEEDED HELP TO CALIFORNIA'S
BIT SMALL BUSINESSES THANK YOU
THANK YOU FOR THE PRESENTATION
AND AND I REALLY LIKE YOUR
APPOINTMENTS SET TO BUY AS
DANIEL TEAM CALIFORNIA A COUPLE
QUESTIONS -- CLARIFICATION
QUESTIONS ON THE DEFINITION
OF SMALL BUSINESSES BASED ON
THE NUMEROUS PROGRAMS THAT YOU
SPOKE ABOUT HAVE SOMEONE MADE
TO FIND A SMALL BUSINESSES UNDER
ONE HUNDRED UNDER TWENTY FIVE
MICROENTERPRISE UNDER FIVE SOME
MAY DEFINE IT AS OVER SEVEN
HUNDRED EMPLOYEES CAN YOU GIVE
US A BREAK DOWN AS TO WHAT A
SMALL BUSINESSES DEPENDING ON
THE PROGRAM THAT WE'RE TALKING
ABOUT HER OUR REGULATIONS
-- FOR THE CAPITAL ACCESS
PROGRAM AND THE COLLATERAL
SUPPORT PROGRAM WE ARE TALKING
ABOUT BUSINESSES WITH FIVE
HUNDRED EMPLOYEES ARE OR LESS
TO A SMALL BUSINESS MAYBE
FIVE HUNDRED EMPLOYEES ARTLESS
THAT'S THAT'S A LOT OF THAT'S A
LOT OF WORKERS -- WHAT IS
IS THERE AN AVERAGE THAT WE CAN
LOOK AT FOR IF WE WERE TO LOOK
AT EMPLOYERS IN CALIFORNIA THAT
RECEIVED THE FUNDING THAT WERE
MAYBE ONE HUNDRED OR LESS SIR
A WAY THAT WE CAN FIGURE OUT
HOW MANY BUSINESSES ARE HELPED
-- ABSOLUTELY WE'D BE ABLE
TO GET THOSE NUMBERS FOR YOU
I WOULD SAY THAT THE MAJORITY
OF SMALL BUSINESSES ACROSS OUR
DISTRICTS ARE OUR BEGAN
HERE MR LACKEY I HEAR YOU LESS
THAN TEN SO BE VERY CURIOUS
TO FIND OUT IF YOU CAN PROVIDE
US WITH THAT INFORMATION AS TO
-- WHERE THOSE FUNDS ARE BEING
ALLOCATED AND YOU KNOW HOW WE
SUPPORT OUR SMALL BUSINESSES
AND OUR SMALL BUSINESS QUARTERS
ACROSS THE DISTRICT A COUPLE
OF QUESTIONS AND I I KNOW THAT
THE MEMBERS OF THE DIETS ALSO
HAVE QUESTIONS -- I'D LIKE
TO TO START WITH -- A TREASURE
MY THINK YOU MENTIONED THAT
THERE'S A FIFTY FIFTY SPLIT
BETWEEN THE I. BANK IN THE C. P.
CFA FUNDS IS THIS A GENERAL
PRACTICE OR IS THIS A IS
THERE ROOM FOR FLEXIBILITY AS
TO WHICH PROGRAM WORKS BEST
-- I THINK BASED ON THE PRIOR
AS AS BC I WON AS WE CALL IT
IT WAS SPLIT FIFTY FIFTY M.
THIS TIME WERE ALSO --
WE ALSO APPLY TO SPLIT FIFTY
FIFTY BECAUSE OF THE SUCCESS
THAT WE HAVE AND THE GOOD
WORKING RELATIONSHIP THAT WE
HAVE WITH ON THE AYE BANK SO
-- LIKE SHEILA A TWO BUYS DANIEL
SAID ON THE MO YOU ALLOWS US
TO TO AGENCIES TO MOVE MONEY
BACK AND FORTH TO PROGRAMS
THAT ARE ACTUALLY WORKING AND
PERHAPS THOSE THAT ARE NOT AND
I HAVE FOUND DURING THE PANDEMIC
THE -- PEOPLE WHO DON'T SPEAK
ENGLISH AS A FIRST LANGUAGE
HAVE BEEN MISSING OUT ON THE
PPP LOANS THE IDOL LOANS ALL THE
GRANTS -- OPPORTUNITIES BECAUSE
SOMETIMES IT'S FIRST COME
FIRST SERVE THEY DON'T TRUST
GOVERNMENTS THEY DON'T HAVE
ANYONE TO HELP THEM FILL OUT THE
APPLICATIONS GET THEIR FINANCES
IN ORDER -- AND SO THERE'S A
LOT OF OBSTACLES AND BARRIERS
TO THE SMALLER MOM AND POP
IMMIGRANT OWNED BUSINESSES WHICH
WE HAVE BEEN TRYING TO HELP OUT
TO OUT REACH BUT WE LOOK TO ALL
OF YOU TO HELP US REACH OUT TO
YOUR CONSTITUENTS TO GET THE
WORD OUT THAT THIS IS A PROGRAM
THAT IS INTENDED TO HELP THEM
TO TRUST US YOU KNOW TO TO
-- ACCESS THE SMALL BUSINESS
DEVELOPMENT CENTERS WHO OFFER
FREE CONSULTATION AND ASSISTANCE
A SMALL BUSINESSES TO REACH
OUT TO THEM TO ASSIST THEM IN
GETTING THEIR APPLICATIONS TO
THESE PARTICIPATING LENDERS
THANK YOU FOR THAT IT ACTUALLY
BRINGS UP MY A COUPLE OF
QUESTIONS THAT I THINK ARE TIED
TOGETHER AND THAT IS YOUR OUT
REACH PLAN WHAT HAS THAT LOOK
LIKE -- I THINK IT WAS MR WILL
WHO SAID THAT -- APPLICATION
SERVER I'M I'M I'M FORGETTING
I THINK IT'S ALL BEEN MENTIONED
BUT ONLINE APPLICATIONS BUT
THE REAL CONVERSATION ABOUT
THE LACK OF A DIGITAL DIVIDE
IS OR I'M SORRY A REAL DIGITAL
DIVIDE IS GETTING IN THE WAY
NOT ONLY OF FAMILIES WANTING
TAXES SCHOOL FOR THEIR CHILDREN
BUT CLEARLY IN A WAY IN WHICH
THESE PROGRAMS ARE ACCESS FOR
COMMUNITIES THAT DON'T HAVE
ACCESS TO THE INTERNET ARE NOT
AS SAVVY AND HOW TO APPLY ONLINE
THERE'S LANGUAGE BARRIERS AT
CETERA SO IN YOUR WORK WITHIN
I WOULD IMAGINE COMMUNITY BASED
ORGANIZATIONS WHAT HAS THAT OUT
WHICH LOOK LIKE AND WHAT IS THE
CONTINUED PLAN MOVING FORWARD
TO ENSURE THAT THEY CONTINUE TO
BE PART OF AN INTEGRATED SYSTEM
IN WHICH WE ARE ABLE TO CONTINUE
TO MAKE SURE WE OUTRAGE AND
FUND SMALL BUSINESSES ACROSS
THE STATE YES SO THIS TIME I
THINK THE FEDERAL GOVERNMENT
RECOGNIZE THE DIFFICULTIES
AND THEY HAVE ALLOCATED A
CERTAIN AMOUNT I THINK FIVE
HUNDRED MILLION FOR TECHNICAL
ASSISTANCE AND SOLD THIS TYPE
OF MONEY WILL ALLOW US TO HIRE
MORE PEOPLE TO DO THAT PHYSICAL
OUT REACHED IN LOOK DIFFERENT
LANGUAGES UP PERSONALLY AT
MY OFFICE I HAVE AN EXTERNAL
AFFAIRS TEAM -- THEY GO OUT
AND THEY REACH OUT TO ALL
THE DIFFERENT -- YOU KNOW NON
PROFITS -- THE THE CHAMBERS THE
ROTOR RES -- WHATEVER AFFINITY
GROUPS THERE ARE TO TRY TO WORK
ON A SMALL BUSINESS -- WEAPON
ARE I'VE DONE THAT WITH A NUMBER
OF YOU -- WE ARE ON SOCIAL
MEDIA PUTTING IT OUT THERE THAT
YOU KNOW THESE PROGRAMS ARE
GOING TO COME BECOME AVAILABLE
WE HAVE PARTNERED WITH THE
AYE BANK ON MANY OF THESE --
OUTREACH SEMINARS IN TERMS OF
WHAT PROGRAMS ARE CURRENTLY
AVAILABLE WHICH ONES ARE GETTING
ROLLED OUT AS IS BCI IS A
MAJOR ONE WE'VE GOT MICRO LOANS
COMING OUT LOANS FOR LOANS
AND GRANTS FOR INDEPENDENCE
A LIVE VENUE OPERATORS AND SO
WE ARE CONSTANTLY OUT THERE JUST
SPREADING THE WORD -- WE ALL
HAVE NEWSLETTERS WE ALL HAVE
TWITTER AND INSTAGRAM -- SO
WE'RE DOING THE BEST WE CAN I
WOULD LOVE TO PARTNER WITH YOU
ALL BECAUSE I KNOW YOU ALL HAVE
YOUR OWN MONTHLY NEWSLETTERS AS
WELL -- AND SO THAT IS ALSO PART
OF OUR STRATEGY IS TO PARTNER
WITH -- AS MANY AS PARTNERS AS
WE CAN AT THE STATE AND LOCAL
LEVELS WOULD YOU BE ABLE TO
PROVIDE US WITH PERHAPS A A
BREAKDOWN OF THE ORGANIZATIONS
ON THE GROUND THAT YOU HAVE
BEEN ABLE TO WORK WITH SO THAT
WE CAN CERTAINLY DO SOME SOME
FOLLOW UP IN OUR DISTRICTS IN
TERMS OF WHAT THAT LOOKS LIKE
AN POTENTIAL OPPORTUNITIES OF
PARTNERSHIP ABSOLUTELY -- AND
BEFORE I TURN IT OVER JUST A
A QUESTION ON EQUITY AND THIS
IS SOMETHING THAT I'M VERY
INTERESTED IN IN TERMS OF OUR
DOLLARS HER SPREAD OR HOW OUR
DOLLARS ARE SPREAD TOP TWO
NINE SEEMS TO BE A CHALLENGE
IN TERMS OF GATHERING DATA
AND SO I'M CURIOUS -- WHAT HAS
BEEN -- THE WORK AROUND AROUND
THAT IF FOR TRYING TO LOOK
AT YOU KNOW HOW DO WE SUPPORT
-- WOMEN OWNED BUSINESSES OR
BUSINESSES OWNED BY WOMEN OF
COLOR OR MINORITY COMMUNITIES
WHAT HAS BEEN THE THE WAY IN
WHICH I'VE BEEN ABLE TO TRACK
-- WELL YES -- PROP TWO OH NINE
NINE I WAS THERE WHEN IT PASSED
AND HAVE BEEN HERE TRYING TO
OVERTURN IT BUT -- THAT HAS
BEEN DEFINITELY BARRIER IN
TERMS OF -- CREATING ACCESS
-- BUT WE HAVE OTHER WAYS TO
TRACK RIGHT -- WHETHER THEY
ARE A BUSINESS OF A CERTAIN
SIZE WHETHER THEY ARE LOCATED
IN ZIP CODES -- OF UNDERSERVED
COMMUNITIES WE TRIED TO USE WHAT
EVER AVAILABLE DATA WE CAN TO
MAKE SURE THAT WE ARE REACHING
THOSE COMMUNITIES THAT MOST
NEED OUR HELP SO -- WE USE THE
SAME METRICS THAT YOU ALL ARE
USING CENSUS DATA -- ZIP
CODE INCOME -- ETCETERA
THANK YOU FOR THAT I THINK THE
CENSUS DATA AS IS INCREDIBLY
-- CRITICAL WHEN I PASS IT OVER
TO OUR MEMBERS OF THE COMMITTEE
BUT FIRST -- AREN'T MY CULTURE
SOME LIMITED AMOUNT IS A MUCH
CHAIR CURRY -- I I DO WANT TO
FOLLOW UP ON THE METRICS AND
SUCCESS -- IS THERE LIKE A
WRITTEN PLAN WILL BE ON WE KNOW
BEYOND THE FEDERAL RULES WHAT
ARE THE STATE'S PRIORITIES AND
GOALS ARE FOR THE DEPLOYMENT
OF THE US S. B. C. I. FUNDS
AND JUST MAYBE SHOWED A LITTLE
BIT ABOUT SOME OF THE METRICS
AND TRACKING THE SUCCESS AND IF
THERE IS A WRITTEN PLAN IN PLACE
YES I KNOW AT CPC
FAA WE HAVE BEEN TRACKING
-- THE DATA FIRST SEVERELY
AFFECTED COMMUNITIES SINCE TWO
THOUSAND TWELVE THAT BECAME
VERY IMPORTANT IN THE WAKE
OF THE PANDEMIC AS SOME OF
THOSE -- WHERE ARE HARDEST
HIT COMMUNITIES SO THAT IS
ONE OF THE METRICS WE LOOK AT
VERY SMALL BUSINESSES AS
-- IS CARILLO -- POINTED OUT
-- VERY SMALL BUSINESSES ARE
OF INTEREST TO YOU WE DO TRACK
THAT INFORMATION AND I WILL BE
GETTING INFORMATION FOR THAT
-- WHILE WE CAN'T --
BASS YOU KNOW THE DECISION
ON WHETHER YOU'RE YOU'RE A
WOMAN AND MINORITY OWNED WE
CAN'T TRACK THE ACT AND WE
DO TRACK THAT INFORMATION
THROUGH OUR LENDERS SO WHEN WE
ENGAGE OUR LENDERS WE ASK THEM
THEIR CAPACITY TO TRACK THAT
INFORMATION AND THE REPORTING
ON THAT DAY TO ON IN THOSE
AREAS WE ALSO ASK IF THEY
HAVE THE ABILITY FOR COMMUNITY
IMPACT MAPPING AND WE COLLECT
THAT DATA AS WELL -- IT
AS YOU'LL SEE IN OUR ANNUAL
REPORT WE DO HAVE A LOT OF
THOSE METRICS DETAILED IN THAT
REPORT AND THEN THE BANKS STILL
HAVE TO REPORT CRLA UP FIGURES
-- YOU KNOW THEY HAVE THEIR
OBLIGATION TO REACH OUT TO THESE
COMMUNITIES AND SO WE GET THAT
INFORMATION TO THEM AS WELL
AND THEN ON THE ARE JUST TO
FOLLOW UP ON THE ROLL OUT HOW
WILL THE STATE BE A WHINY AND
THE IMPLEMENTATION OF THE S.
S. B. C. I. PROGRAM WITH OTHER
PUBLIC OR PRIVATE PROGRAMS
THIS IS NOT A QUESTION THAT
WE WANT WE'RE LOOKING TO SCOTT
ACTUALLY YOU'RE ON MUTE ANSWER
MUCH OF THE SOUTHEAST I'M
NOT SURE I UNDERSTAND THE
NATURE OF THE QUESTION WITH
WE HAVE EXISTING PROGRAMS
WE CAN SIMPLY CONTINUE TO
EVALUATE CONSIDER AND --
-- THEN PUT INTO PROCESS THE
LAUNCH OF OTHER PROGRAMS -- THIS
IS ALL SIMULTANEOUS SOME SOME
WHICH WE USE OUR EXISTING FUNDS
THAT ARE AVAILABLE AT SMALL
BUSINESS FINANCE CENTER AND ON
THE ON BALANCE SHEET SOME WILL
RECEIVE ALLOCATIONS OF S. B.
C. I. FUNDS EVERYTHING
THAT WE DO IT AYE BANK AYE
LEVERAGES A PUBLIC PRIVATE
PARTNERSHIP TO SOME DEGREE RIGHT
WE HAVE OUR SEVEN FINANCIAL
DEVELOPMENT CORPORATIONS THAT
ARE NONPROFITS -- THAT ARE UNDER
CONTRACT WITH I THINK OF ALL
THE LOANS THAT COME OUT THROUGH
THE LOAN GUARANTEE PROGRAMS ARE
VIA THE NETWORK OF A HUNDRED
TWENTY ONE LENDERS THROUGHOUT
THE STATE THAT ARE PRIVATE
ENTITIES -- WE'VE ALSO FORMS
THE CALIFORNIA REBUILDING FUNDS
-- DURING THE ONSET OF THE
PANDEMIC THE CALIFORNIA BUILDING
FUND IS A COLLABORATION THAT
ENCOMPASSES THE STATE NONPROFITS
PHILANTHROPY FOUNDATIONS LARGE
BANKS AND CORPORATIONS ALL INTO
ONE ENTITY TO PROVIDE AS MUCH
CAPITAL AS POSSIBLE FOR THE
SCALE WE NEED AND SO WE'LL
CONTINUE TO FUND THESE ENTITIES
THESE PROGRAMS AS THEY ACHIEVE
THEIR SUCCESS AND TARGETS AND
WILL MAKE SURE THAT THERE'S
ALWAYS AVAILABLE RESOURCES TO
CONTINUE TO FEED THE NEEDS TO
FILL THE GAP GAPS THAT EXIST IN
LONDON FOR THE SMALL BUSINESS
COMMUNITY THANK YOU MISTER
-- AND ALSO FOR CITY CFA CAL
CAP AND IT WE DO EVERYTHING FROM
SMALL LOANS TO HELP BUSINESSES
START UP AND STAY AFLOAT ON
LIKE THE FUNDS FROM AS AS BCI
AS WELL AS THE CAPACITY TO
DO THE LARGER LOANS TO ENSURE
BUSINESSES CAN THRIVE AND GROW
AS WE'RE TRYING TO DO WITH SB
SEVEN SEVEN SEVEN JUMPSTART
-- IN OUR BOND PROGRAM WE --
HELP -- BUSINESSES WITH ACCESS
TO CAPITAL WITH THE ISSUANCE OF
PRIVATE ACTIVITY BONDS YEAH AND
AND SINCE WE KNEW ABOUT THIS
PROGRAM BACK IN IN DECEMBER WE
HAVE BEEN ALL WORKING -- WAITING
ANXIOUSLY FOR THIS MONEY AND SO
WHENEVER THE MONEY GETS TO US
IT COMES THROUGH THE TREASURER'S
OFFICE WE WILL DEPLOY IT AS
QUICKLY AS POSSIBLE AND WE'RE
NOT WAITING UNTIL IT GETS YOUR
BECAUSE WE'RE RAMPING UP BECAUSE
THESE ARE A CONTINUATION OF
THE PRIOR PROGRAM SO IT'S NOT
LIKE WE HAVE TO PROGRAMS ARE
GOING TO START THE VC PROGRAM
AND WE'RE GONNA START VIA
LOAN PARTICIPATION PROGRAM BUT
ALL THE OTHER PROGRAMS ARE UP
AND RUNNING AND SO WE'RE JUST
GONNA DO A LOT MORE OUTREACH AND
AND YOU KNOW GETTING READY TO GO
WHENEVER THEY SEND US THE MONEY
AT JUST A POINT OF CLARIFICATION
SINCE THE OFFICE OF THE SMALL
BUSINESS ADVOCATE AS WELL AS I.
BANKER UNDERGO BIZ WHO EXACTLY
TRACKS WHICH WHICH ENTITY
I THINK IS THE LEAD APPLICANT
-- THEY WILL BE COLLECTING
DATA FROM C. P. CFA
BUT IT'S THE OFFICE OF THE
SMALL BUSINESS ADVOCATE THAT
DISTRIBUTED THE FUNDS CORRECT
NO NO NO LOVE IS GRAND ARE THE
GRANT KNOW THAT I THINK THAT'S
A NEW OFFICE THE SMALL BUSINESS
ADVOCATE SO BACK IN TWENTY
ELEVEN -- IT STILL WENT TO
I THANK AND OUR CALVET
CAP PROGRAM BUT SCOTT MAYBE
YOU CAN YES EVERYONE IN THE US
OF THE OFFICES SMALL BUSINESS
ADVOCATE ACTUALLY YOU'RE
RIGHT THE DISK DISTRIBUTED
THE CALIFORNIA SMALL BUSINESS
EMERGENCY GRANTS RIGHT SALUTE
THE REALLY CRAFTING SMALL
BUSINESSES OVER THE COURSE OF
A DECEMBER OF TWENTY TWENTY TWO
LAST SEPTEMBER WERE DISTRIBUTED
THROUGH THE OPPOSITE SMALL
BUSINESS ADVOCATE AS A GRANT
TORE THEY ALSO WILL TAKE PART
IN THE S. B. C. GOT PROGRAM
THAT'S UPCOMING ONCE WE
RECEIVE GUIDELINES ABOUT THE
TECHNICAL ASSISTANCE FUNDS
BECAUSE THEY WILL SERVE AS
A LEAD UP PROVIDED TECHNICAL
ASSISTANCE THROUGH THE SPDC
UNDERTAKE PROGRAM PARTICIPANTS
TO BASICALLY AUTOMAT CTCL
BASED LEARNING PROGRAMS
AND ARE LEARNING PROGRAMS
WITH TECHNICAL ASSISTANCE
PROVIDED BY THEIR PARTNERS
THANK YOU FOR THAT MISTER -- I
THINK GIVEN ALL OF THE SMALL
BUSINESS OPPORTUNITIES GRANT
PROGRAMS MEDICAL BIT AND FEDERAL
OPPORTUNITIES AS WELL THERE'S
A LOT OF INFORMATION COMING OUT
AND I THINK WE ALL WANT TO MAKE
SURE THEY WERE ON THE SAME PAGE
AND RECEIVING THE INFORMATION
FROM A SOURCE THAT HAS ALL THE
INFORMATION VERSUS TRYING TO
PIECE IT ALL TOGETHER THAT'S THE
THE POINT OF MIND CREE AND HOPE
I HOPE THAT AS WE MOVE FORWARD
WE'RE ABLE TO TO REALIZE THAT
I THINK THAT'S WHY ASSEMBLY
MEMBER CERVANTES AND I WANTED TO
HOST THIS THIS -- HEARING TO
BE ABLE TO JUST KIND OF GET IT
ALL IN ONE PLACE -- WANT TO PASS
IT ON OVER TO MEMBERS OF THE
COMMITTEE -- MISS BETWEEN OURS
THANK YOU AT MADAM CHAIR AND AND
THANK YOU TO BOTH OF OUR CHAIRS
FOR CONVENING THIS HEARING
ON IT SAID REALLY IMPORTANT
CONVERSATION I'M AS SURPRISED AS
A MEMBER OF THE JEDI COMMITTEE
ALSO IS CHAIR OF THE ASSEMBLY
SELECT COMMITTEE ON SMALL
BUSINESS AND ENTREPRENEURSHIP
AND AT IT I THINK THAT WE ALL
RECOGNIZE THAT THERE IS ONE
POINT WHAT IS THAT ONE EIGHT
BILLION DOLLARS IN ASSETS B. C.
I. FUNDS REALLY ARE POTENTIALLY
TRANSFORMATIONAL IN HELPING
OUR SMALL BUSINESS COMMUNITY
EMERGE FROM THIS UNPRECEDENTED
ECONOMIC CRISIS BUT I ALSO THAT
WE RECOGNIZE THAT KIND OF YOU
KNOW GETTING THE MONEY RIGHT NOW
CHECK IT AND GET THE CHECK IS
REALLY JUST THE BEGINNING AND --
REALLY APPRECIATE THIS KIND OF
UP FRONT OVERSIGHT WHICH I THINK
IS GOING TO BE REALLY IMPORTANT
AS WE ROLL OUT THESE PROGRAMS
AND HAD A COUPLE QUESTIONS I
WANNA PICK UP I THINK FIRST ON
A QUESTION THAT CHAIR CERVANTES
PASSED ON SUIT IS THERE A
OVERALL INTEGRATED STRATEGIC
PLAN THAT'S WRITTEN DOWN THAT
SUMMARIZES THIS IS THE ROLL
OUT OF THE ONE POINT ONE EIGHT
NINE BILLION DOLLARS THESE ARE
OUR NETWORK PARTNERS I HERE'S
THE GOALS ASSOCIATED WITH THAT
HERE'S OUR ASSUMPTION ABOUT
AT DEFAULT RATES HERE'S OUR
ASSUMPTION ABOUT WHAT HAPPENS
WITH REDEPLOYMENT AND WHETHER
GENERAL FUND SUPPORT IS REQUIRED
IS THERE A SINGLE CANISTER
TEACHER CLAN HI FOR THIS PROGRAM
THERE IS A STRATEGIC PLAN
THAT IS INCORPORATED INTO
OUR JOINT APPLICATION TO U.
S. TREASURY THAT WAS SUBMITTED
ON FEBRUARY FOURTH -- WE DID
PROVIDE -- LEGISLATURE WITH A
SUMMARY OF THAT OVERALL PLAN I
THINK IT'S ABOUT A SIX OR SEVEN
SUMMARY IT PROVIDED IN LATE
JANUARY WE'RE HAPPY TO ANSWER
ANY QUESTIONS THAT MIGHT ENSUE
FROM THAT INFORMATION OKAY SO
WE'VE GOT IT SAID THIS IS THE
CALIFORNIA SAYS PCI SUMMARY
JANUARY TWENTY TWENTY TWO OKAY
WHICH I THINK IS GOOD IT'S A
GOOD START I THINK I'M IN A
FROM MY VIEW I THINK IT WOULD BE
REALLY HELPFUL FOR THAT THE
LEGISLATURE AS A WHOLE BUT
CERTAINLY I THINK FOR THE AT
THESE COMMITTEES TO HAVE A
LITTLE BIT MORE DETAIL AROUND
-- THAT THE METRICS AND GOALS
BOTH FOR PROGRAM IMPLEMENTATION
BUT ALSO FOR AT UNDERSTANDING
THE DEFINITION OF PROGRAM
SUCCESS I'M SO YOU KNOW THAT
CERTAINLY WOULD BE A REQUEST
THAT I HAVE IS WE COME AWAY
FROM THIS AND I THINK THAT THAT
WILL ENABLE ALL OF US TO BE
ON THE SAME PAGE IN TERMS OF
AB IT WATER PUT OUR GOALS
AND ARE WE ACHIEVING NOT FOR
CALIFORNIA SMALL BUSINESS
SURE WHAT WE WANT TO ASSURE TO
FOLLOW UP ON THAT IT WOULD NOT
BE SORRY IS THAT THEN WOULD I
THINK BE THE ONE WHO WOULD TAKE
THE LEAD ON THAT SORT OF A
DEEPER DIVE DO EXACTLY WHAT'S
THE SAKE TREASURER'S OFFICE R.
AS YOU'RE AWARE IN THE FRONT
PROGRAMS WE RUN PROGRAMS WILL
ACCUMULATE THE DATA AGGREGATE
THAT WE HAVE A QUARTERLY
REPORTING REQUIREMENTS TO U. S.
TREASURY ON THEIR METRICS THAT
TELL WERE REQUIRED TO REPORT
THAT RUN THE GAMUT FROM LEVERAGE
RATIOS TO -- THE UPTAKE
AND UTILIZATION TO THE CITY
DEMOGRAPHICS -- GEOGRAPHIC
-- -- INFORMATION AND SO
IT'S A QUITE A ROBUST REPORTING
METRIC THAT WE'RE CURRENTLY
PUTTING IN COMPLIANCE ALONG
WITH C. P. S. B. OKAY TO BE
ABLE TO GATHER AND REPORT
ON WHAT KIND OF FOR THE BASIS
US TREASURY AND FROM THE AYE
AYE AYE -- WOULD SURMISE
THAT WILL BE ABLE TO COME UP
WITH SUMMARY FOR YOU OKAY GREAT
AND AND THEN JUST SPECIFICALLY
I'M AT THE THE L. A. -- I
THOUGHT YOU YOU MADE AN ENGINEER
YOUR OPENING OBSERVATION THAT IN
SOME RESPECT THE U. S. TREASURY
TREASURY REQUIREMENTS I THINK
YOU SAID WORK AT CROSS PURPOSES
I'M I WAS REALLY INTERESTED IN
IN THE PANELIST OTHER PANELISTS
REACTIONS TO THAT ASSESSMENT
AND THEN ALSO JUST SPECIFICALLY
AT AROUND AT THE POINT
THAT AS WE EXPAND THIS PROGRAM
WILL NEED TO CONSIDER ISHAAN
TOLERANCE FOR RISK SPECIFICALLY
WHAT ARE AT OUR CURRENT
DEFAULT RATES AND WHAT ARE
THE ASSUMPTIONS AS WE LOOK
FORWARD AND EXPAND THE PROGRAM
-- I KNOW FOR THE CAPITAL
ACCESS PROGRAM THAT
IS A LOAN LOSS RESERVE
PORTFOLIO -- PROGRAM --
THAT PROGRAM THE BUSINESS IS
LOS THAT'S WHAT WE DO
WE INCENTIVIZE LENDING
-- TO FOLKS WHO OTHERWISE
MIGHT NOT BE ABLE TO
OBTAIN LOANS -- AND MAY
END UP IN THE HANDS OF
PREDATORY LENDERS -- WE CAN
INCENTIVIZE THE BANK TO MAKE
THAT LOAN AND WE CAN COVER IT
SO THE DEFAULT RATE IS NOT
SOMETHING THAT WE CONCENTRATE
ON THAT'S NOT A PERFORMANCE
INDICATOR FOR THAT PROGRAM
-- FOR THAT PROGRAM THE
SEVENTY PERCENT OF BUSINESSES
THAT ARE ABLE TO THRIVE
AND MAKE IT AND CONTINUE ON
-- THAT'S OUR PERFORMANCE
INDICATOR FOR SUCH A PROGRAM
OUR COLLATERAL SUPPORT PROGRAM
HAS LESS THAN ONE PERCENT
OF A DEFAULT RATE SO WE DON'T
REALLY TRACK THAT EITHER AS
A PERFORMANCE INDICATOR TOM
I CAN TURN IT UP WE DO I'M
SORRY SCOTT SAYS THAT WE DO HAVE
IT IN OUR REPORT SO WE DO KEEP
TRACK OF OF FOR EXAMPLE
IN THE TWENTY TWENTY ANNUAL
REPORT ON PAGE TEN OF THE
SECOND GRAPHIS CAL CAP FOR SMALL
BUSINESS -- PROGRAM DEFAULT
SUMMARY EVEN THOUGH THAT IS
NOT THE METRICS THAT WE USE
-- IT IS SOMETHING THAT WE DO
KEEP TRACK OF AND WE DO REPORT
OUT SO FROM THE PROGRAMS SO
AS YOU CAN SEE TWENTY TWENTY
WE HAD A MORE DEFAULTS DUE
TO COVET OBVERSES YOU KNOW
IN THE PRIOR YEARS AS YOU CAN
SEE THAT -- BURKE LOT LESS
AND FOR THE PROGRAM IS THE
DEFAULT RATES HELP DETERMINE
WHAT A RESERVE REQUIREMENTS ARE
FOR ANY PARTICULAR PROGRAM AND
HELP DICTATE HOW SUSTAINABLE
THE PROGRAM IS LONG TERM IF IT
WILL EXHAUST ITS FUNDING WITH
DEFAULTS AND SO FOR EACH OF OUR
INITIATIVES AND PROGRAMS FOR
EXAMPLE THE SMALL BUSINESS LOAN
GUARANTEE PROGRAM I HISTORICALLY
HAS GENERATED DEFAULT RATES OF
APPROXIMATELY ONE PERCENT AND
THAT'S ENABLED IT TO REMAIN
SUSTAINABLE AND GROW WITH ITS
INTEREST EARNING SINCE TRUST
FUND OUR OUR DISASTER LOAN
PROGRAM HAS A HIGHER EXPECTED
DEFAULT RATE AND SO FOR THE
LARGER DISASTER RELIEF LOANS
-- WE GET RESERVE THREE AND A
HALF TO ONE RATHER THAN ONE
WE'VE THAT WE RESERVE FOR SMALL
BUSINESS LOAN GUARANTEES AND
FOR V. KOPET DISASTER PROGRAM
TO COMMIT PROGRAM WAS LAUNCHED
IN APRIL OF TWENTY TWENTY WE
EXPECTED DEFAULTS THAT WERE
POTENTIALLY QUITE SIGNIFICANT
AND AS A RESULT -- DECIDED
ANOTHER WOODFORD HAD MENTIONED
IN HIS REPORT DECIDED TO BE
SERVED AT EIGHTY TWO TO ONE
LEVEL AND SO IT COULD ABSORB
VERY HIGH LOSSES HAVING
SAID THAT TO DATE IT HASN'T
EXPERIENCED SIGNIFICANT LOSSES
ALTHOUGH IT'S STILL EARLY
AND IT'S OUT OF CYCLE ENDS
RUNOFF CYCLE OF THE VENTURE
CAPITAL PROGRAM AS WE PURSUE
IT WILL BE EXPECTED TO HAVE A
VERY HIGH DEFAULT RATES BUT WITH
VERY SIGNIFICANT RETURNS FROM
THOSE THAT SUCCEED -- WHICH IS
THE NATURE OF VENTURE CAPITAL SO
IT REALLY IS PROGRAM PROGRAM
PRODUCT BY PRODUCT SPECIFIC WHAT
DO YOU MISS RETURN THRESHOLDS
ARE THAT LEAD US TO DETERMINE
HOW MUCH RESERVES AND AND WHAT
TYPE OF FUNDING ITS LATERAL WE
NEED TO SET ASIDE AND
I'M MR IS THE VENTURE PROGRAM
GOING TO BE UNDER THE I THINK
UMBRELLA OR IS THAT SEPARATE AND
TEST THEM THE PROGRAM WILL BE
WATCHING RIGHT BAGS ARE USING US
AS DCI FUNDS OKAY GRATEFUL THANK
YOU I'M AND I GUESS LAST IS MORE
OF A COMMENT THEN AND A QUESTION
AND AGAIN I THINK BUILDING ON
A CHAIR CREATORS POINT EIGHT I
KNOW THAT EVERYONE IN THIS ROOM
IS A PASSIONATE ADVOCATE FOR
FOR CALIFORNIA SMALL BUSINESSES
AND PASSIONATELY COMMITTED TO
GROWING AND SUPPORTING OUR SMALL
BUSINESSES I'M I THINK ONE THING
THAT WE'VE ALL SEEN IS THAT
FOR SO MANY OF OUR LOCAL SMALL
BUSINESSES YOU CAN BE JUST SO
HARD AND CONFUSING TO NAVIGATE
THIS THIS WHOLE IN A THERE'S
ALL THESE PROGRAMS ALL THESE
RESOURCES AVAILABLE BUT LIKE
ELABORATE TO NAVIGATE AND I'M I
KNOW ALL OF US ARE REALLY KEEN
TO CONTINUE TO PARTNER WITH YOU
TO MAKE IT EASIER FOR ALL OF
OUR CONSTITUENTS TO ACCESS THE
INCREDIBLE ARRAY OF PROGRAMS
AND AND RESOURCES ON THE
CALIFORNIA IS MAKING AVAILABLE
TO SUPPORT OFFICE AND SO ON
THANK YOU FOR FOR ALL THAT TO
ADD THAT YOU DO AND LOOK FORWARD
TO CONTINUING TO WORK WITH
YOU ON THAT FRONT AS ON OTHER
RESOURCES ARE PARTICIPATING
LENDERS THESE ARE THE PEOPLE
WHO ARE ACTUALLY LENDING TO
THEIR CLIENTS SO YOU KNOW WE
NEED TO PUSH THEM A LITTLE BIT
MORE TO EXPAND THEIR BASE AS
WELL AS YOU KNOW HUNDRED PERCENT
THANK YOU MISS BETWEEN ARTISTS
NOT ONLY IS A CONFUSING FOR
THOSE PLAIN BUT IT'S CONFUSING
FOR THOSE OF US TRYING TO
UNDERSTAND HOW WE GET THE
DATA TO MAKE SURE THAT OUR
COMMUNITIES ARE GETTING THOSE
RESOURCES -- MISTER SMITH
ADAM CHAIR AND MADAM VICE CHAIR
WELL IT WASN'T QUITE CLEAR IF
THE VENTURE CAPITAL IN THE LONG
PURCHASE A PRO PARTICIPATION
LOAN PROGRAM ARE SEPARATE --
THE ALL IN ONE IN ONE I THINK
THEY'RE GONNA BE SEPARATE --
THAT'S A NEW PROGRAM THAT THE
AYE BANK VENTURE CAPITAL PROGRAM
AND THE LOW PARTICIPATION COULD
BE A NEW PROGRAM THAT WE'RE
GONNA BE EMBARKING ON BECAUSE
WE'RE GETTING SO MUCH MONEY
FROM THE FEDERAL GOVERNMENT
AND SO NOW WE CAN EXPAND OUR
PROGRAMS OKAY AND THEN OF
COURSE THE VENTURE CAPITAL
QUESTION WAS ANSWERED BUT WE'LL
KEEP AN EYE ON THAT ONE BUT
I WANT TO SAY THANK YOU VERY
MUCH FOR THIS I THINK I ASK
FOR THAT A FEW MONTHS AGO AND
WHEN WAS THE COMING AND YOU
DID GOOD BUT PRETTY MUCH ON
THE EASTERN EDGE OF THE STATE
NO VERY NORTHERN PART OF THE
STATE THERE'S NO LOANS GOING
OUT TO ANYONE JUST BECAUSE
THEY DON'T KNOW OR THEY DIDN'T
APPLY -- THERE'S REASON WHY
I HAVE FOUND IN THE LAST
THREE YEARS THAT SOME OF THESE
COMMUNITIES JUST THEY KNOW ABOUT
IT BUT THEY DON'T NEED IT THEY
DON'T TRUST IT THEY DON'T APPLY
FOR IT THEY DON'T WANT IT'S --
BUT NOT FOR LACK OF US DOING
RESEARCH OUTREACH IT IS CERTAIN
SOMEWHERE IN HERE BROKEN DOWN
YOUR STAMINA DINO LA WHATEVER
COUNTY THEY GOT SO MANY LOANS
SO MUCH MONEY AND WHAT SO WE
CAN SAY WHERE IT ALL WENT TO
YEAH SO WHAT WE WILL DO IT FOR
THE BREAKDOWN IN TERMS OF WHERE
THEY WENT AND THEN HOW MANY
EMPLOYEES BECAUSE THAT'S WHAT
-- WHICH I WOULD LIKE ALSO JOBS
CREATED FOR JOBS KIDS ARE REALLY
WILL DO FOR THE BREAKDOWN OF
THESE MAPS FOR YOU OKAY THEN
-- THE CAL CAP LENDING IT TO
FIFTY FIVE THOUSAND THREE AND
A TWELVE LOANS TOTALED THREE
HUNDRED SIXTY TWO MILLION AND
THE QUESTION WAS ASKED ABOUT
DEFAULT RATE I THINK IT SHOULD
BE IN THERE SO WE WOULD KNOW
OR THE BANKS WOULD BE ABLE TO
TELL US HOW MUCH WE'RE GONNA
DEFAULTER WAS AS A BUSINESS
PERSON OKAY YOU KNOW YOU WANT
TO KNOW ALSO SPECIFICALLY
TO FOR EACH OF THESE I DON'T
PROGRAMS BECAUSE ONE MIGHT BE
MORE DEFAULTING THAN THE OTHERS
OVER THE COURSE OF MAKES OUT OF
BALANCE AND NOT AS A ARTS ALL
ABOUT THE SAME OKAY AND I THINK
L. A. O. SAYS IT'S VERY SMALL
BUT WHAT SMALL TO THEM MIGHT NOT
BE VERY SMALL TO THE TAXPAYER
KIND OF LOOKING AT IT BUT
THOSE KIND OF QUESTIONS I THINK
AND BUT I THINK IT'S A GREAT
PROGRAM WE JUST GOT TO GET THE
WORD OUT MORE FOR FOLKS TO THAT
ARE OUT THERE STRUGGLING IN A
BUSINESS IT CAN NAY A PIE FOR
COUPLE DIFFERENT LOAN
APPLICATIONS TWO OR THREE OF
JUST AT LIKE A RESTAURANT TRYING
TO EXPAND THE RESTAURANT I NEED
TO EXPAND THE KITCHEN THEY NEED
TO DO SOME CONSTRUCTION WORK
IN WHERE DOES THE BANK LOAN
OFFICER OR THE STATE COME IN
AND SAY HEY YOU SHOULD APPLY
FOR THIS LOAN YOU CAN WILL HELP
YOU OUT THIS TO GET THAT LONG
SO THE ALL COMBINED TOGETHER
TO MAKE SURE THAT THEY'RE
SUCCESSFUL WE LIKE TO
THINK OF IT AS TO AN ARRAY OF
TOOLS IN THE TOOLBOX -- LENDERS
-- USE BOTH OF OUR PROGRAMS
THAT USE THE AYE BANK PROGRAMS
AND THEY USE THE CAPITAL ACCESS
PROGRAM -- I THINK THEY'RE
PROHIBITED FROM -- STACKING
THAT'S USING YOU KNOW ABOUT
FOUR ONE LOAN YEAH -- BUT
-- I THINK THEY WILL ASSESS --
THERE BORROWER AND DETERMINE
WHICH PROGRAM BEST MEETS
THEIR NEEDS AND -- WE HAVE
LENDERS THAT THAT USES BOTH
ONE ONE LAST QUESTION IN ME
AS A SMALL BUSINESS I APPLIED
FOR THE LOAN I GET IT I PAY IT
OFF IN TWO OR THREE FOUR YEARS
WHATEVER LAW CAN I REAPPLY
FOR TO DO EXPANSION AGAIN WITH
MY BUSINESS BECAUSE THAT GOES
WITH IT YEAH THAT'S ABSOLUTELY
PERFECT MAKE IT A LITTLE EASIER
FOR THE APPLICATION THE SECOND
ROUND THANK YOU VERY MUCH
MISTER LUCKY AND JUST THE OF
A POINT OF REFERENCE FOR THE
COMMITTEE OUR NEXT PANEL DOES
HAVE A HEART OUT AT THREE
THIRTY SO IF IT'S POSSIBLE --
YOU MIGHT MAYBE YOU CAN STAY
A LITTLE BIT LATER UNANSWERED
DECISIONAL QUESTIONS IF WE DON'T
GET THROUGH THE MOUNTAINS MISTER
LUCKY MONTREUIL SIMPLE --
COMING FROM A VERY SMALL
COMMUNITY I MEAN A SMALL
BUSINESS TO ME FIVE HUNDRED
LADIES IS A BIG BUSINESS I
MEAN THAT THAT'S KIND OF IT'S
A REAL RELATIVE TERM WHEN
WHEN WE USE THE TERM SMALL
BUSINESS BUT I COULD TELL YOU
-- FROM A LOT OF THE AREAS
THAT I REPRESENT THEIR SMALL
BY EVERYBODY'S DEFINITION
AND I I'M JUST I HAVE SOME
CONCERN I'M VERY THRILLED TO
SEE THE FEDERAL MONEY IS COMING
BACK TO US -- AND DISPENSERS
BCI AND I JUST WANT TO KNOW
HOW IT'LL BE IMPLEMENTED IN THE
OVERALL APPROACH TO INCREASE
SERVICES TO UNDERSERVED
REGIONS ARE VERY RURAL
REGIONS LIGHT LIKE I REPRESENT
-- AND CREATED ANY AN EVEN
MORE ROBUST NETWORK OF BUSINESS
SUPPORT THAT'S MORE EVENLY
DISTRIBUTED -- AND AND MORE
ACCESSIBLE THROUGH COMMUNITIES
ACROSS THE STATE AS YOU LOOK
ACROSS YOUR IT'S NOT THAT EVENLY
DISTRIBUTED BUT -- I'M I'M JUST
IS THERE A PLAN IN PLACE TO
BE A LITTLE MORE FAIR AND THAT
THAT EQUITABLE OUT REACH YEAH
SO -- THANK YOU LIKE I MENTIONED
I'VE DONE THREE HUNDRED ZOOM
WEBINARS AND I'VE TRIED TO
PARTNER WITH AS MANY OF YOU
-- WITH YOUR LOCAL REGIONAL
CHAMBERS OF COMMERCE -- WE
USE OBVIOUSLY YOU KNOW THERE ARE
PARTICIPATING LENDERS AND TRY TO
EXPAND THOSE LENDERS WHO ARE
SERVICING YOUR COMMUNITY SO IF
YOU LOOK AT OUR LENDERS AND YOU
SEE THAT WE SHOULD MAYBE OUT
REACH OUT TO OTHER ONES THAT YOU
KNOW WE ARE FAMILIAR WITH YOUR
CONSTITUENTS IN YOUR AREA PLEASE
LET US KNOW AND WE WILL DO THE
OUTREACH WALKING THROUGH IT
ONBOARD THEM AND MAKE SURE THAT
THEY UNDERSTAND WHAT THE LENDING
REQUIREMENTS ARE AND THEN THEY
CAN DO THE FURTHER OUTREACH SO
ARE SB DC'S ALSO WERE SUPPOSED
TO BE OUT THERE THERE'S GREAT
NONPROFIT ORGANIZATIONS LIKE
THE SMALL BUSINESS MAJORITY OF
THAT IS CONSTANTLY ROLLING OUT
THESE PROGRAMS THEY PROBABLY
HAVE ONE OF THE BEST WEBSITES
OF ALL THE DIFFERENT -- FEDERAL
STATE AND LOCAL RESOURCES SMALL
BUSINESS MAJORITY DOT ORG -- AND
WE PARTNER WITH THEM -- TO DO
OUTREACH AS WELL SO WE'RE TRYING
TO DO WHATEVER WE CAN ESPECIALLY
TO THOSE COMMUNITIES THAT HAVE
NOT RECEIVED THEIR FAIR SHARE
OF RESOURCES OVER THE YEARS SO
WE ARE COGNIZANT OF THAT AND
AND REALLY TRY TO GO OUT AND
AND DO THAT THANK YOU SO MUCH
IF I COULD HAVE TO THESE
OTHER TREASURES COMMENTS IT'S
BASICALLY UNDER THE U. S.
TREASURIES STUDY DEFINITIONS TWO
OF THOSE STUDIES SUB CATEGORIES
RELATE TO RURAL COMMUNITIES
AND ENVIRONMENTS ISOLATED FROM
MAINSTREAM OF AMERICAN SOCIETY
AND SO THOSE REQUIREMENTS TO
-- REALLY EMPHASIZED SOME OF
THOSE COMMUNITIES WE'VE BEEN
DOING SO EVEN IN ADVANCE OF
S. B. C. I. WHEN WE WATCH OUR
COULD BE NINETEEN PROGRAM WE
REALLY EMPHASIZED COMMUNITIES
THAT WERE UNDER SERVED THOSE
THAT WERE NOT REACHED OUR
PROGRAMS -- HAVE OF THE
FOR SUPPORTED FINANCINGS
IN NEARLY ALL ALL OF THE
COMPANY'S OF CALIFORNIA THEY'RE
STILL IMAGES THAT DON'T HAVE
SIGNIFICANT BUSINESS ACTIVITY
BUT OUR SEVEN FTC PARTNERS
ACTUALLY COVER THE ENTIRE STATE
AND WE JUST NEED TO DO A BETTER
JOB OF GETTING THE WORD OUT
THERE AS A TREASURE MY GENERAL
NUMBER LEVERAGING ASSOCIATIONS
WE'RE LEVERAGING OF MINUTES FOR
WEBINARS AND I DO WANT TO
CORRECT ONE THING FROM EARLIER
THE THE FIVE HUNDRED -- SMALL
BUSINESS EMPLOYEE DEFINITION
ISN'T SOMETHING THAT WE CAME
UP WITH RIGHT THAT'S WE'RE
FOLLOWING THE S. B. EIGHT
GUIDELINES THE SBA GUIDELINES
HAVE THRESHOLDS FIVE HUNDRED
FOUR COMPLEXES PROGRAMS AND
SEVEN HUNDRED FIFTY EMPLOYEES
ARE UNDER FOR OTHER CREDIT
SUPPORT PROGRAMS WHICH INCLUDES
OUR LOAN GUARANTEE PROGRAM
INCLUDES OTHER VENTURE CAPITAL
PROGRAM AND OTHER THINGS AS WELL
-- SO WE'RE ABIDING BY THEIR
LIMITATIONS HAVING SAID THAT THE
VAST MAJORITY OF VIRTUALLY
ALL OF OUR FINANCINGS HAPPEN
WILL SOUTH OF THAT ARE COPING
NINETEEN PROGRAMS HAS AN AVERAGE
EMPLOYEE SIZE FOR BUSINESS
THAT RECEIVED A GUARANTEED
UNDER FIVE EMPLOYEES AND SO
I WOULDN'T FOCUS TOO MUCH ON
THE THRESHOLD OF FOR MAXIMUM
NUMBER OF EMPLOYEES I WOULD
FOCUS ON WHERE THE ACTIVITY
ACTUALLY IS TAKING PLACE
THANK YOU MISTER WILL TREASURE
MY WOULD IT BE OKAY IF YOU
STAY ON A LITTLE BIT LONGER
FOLLOWING PANEL TOO SO I KNOW
THEY HAVE TO CATCH FLIGHTS
OKAY -- IN PARTICULAR THINK WE
WOULD WANT TO ASK -- YOU KNOW
ROUND OR ROUND ONE ROUND TWO
ANY FUNDS LEFT OVER WHAT THE
DIFFERENCE GOING TO BE BETWEEN
THOSE TWO ROUNDS -- THE URBAN
REGIONAL QUESTIONS -- RULE
IN URBAN REGIONAL QUESTIONS ARE
IMPORTANT THE DEFINITIONS OF
SMALL BUSINESS FIVE HUNDRED AND
UNDER WE'D LIKE TO SEE LIKE WHAT
THE DIFFERENCES ARE AND WHICH
COMMUNITIES HAVE BEEN HELPED
BUT WE'RE GONNA GET TO PANEL
TO AND THEN HOPEFULLY YOU'RE
ABLE TO COME BACK AFTER THAT
THANK YOU SO MUCH I'M GONNA
NOW PASS IT OVER TO MY CULTURE
OKAY WHAT IF WE COULD TURN TO
AGENDA ITEM THREE WE
WILL BEGIN WITH OUR NEXT PANEL
IF YOU COULD PLEASE COME TO THE
PRESENTATION TABLE I BELIEVE
EVERYONE WHO IS HERE IN PERSON
YOU COULD APPROACH YES PLEASE
OUR MEMBERS DURING THIS
PANEL YOU ARE WE WILL HAVE AN
OPPORTUNITY TO HEAR FROM SEVERAL
OF OUR STAKEHOLDER GROUPS ABOUT
CURRENT CAPITAL NEEDS A SMALL
BUSINESS OWNERS AS WELL AS THE
BEST PRACTICES FOR GRAHAM
DESIGN AND EVALUATION WE'RE
VERY PLEASED TO WELCOME TODAY
CAROLINE GOT A LEAN -- MARTINEZ
WITH CAMEO I EUGENE CORNELIUS
JUNIOR I WITH THE MILKEN
INSTITUTE IN ALISON KELLY I
WILL I SEE AS LET ME REMIND
MEMBERS THAT WE HAVE OUR PANEL
BIOGRAPHIES AVAILABLE ON THE
DESK AS WELL AS A JEDI WEBSITE
AND RATHER THAN HAVING A FORMAL
PRESENTATION THIS PANEL AS
ORGANIZED AS AN OPEN DIALOGUE
BETWEEN THE COMMITTEE MEMBERS
AND THE PANELISTS WE HAVE ASKED
EACH OF OUR PANELISTS TO MAKE
A BRIEF TWO MINUTE INTRODUCTION
WHICH WILL THEN BE FOLLOWED
BY QUESTIONS AND FURTHER
DISCUSSION FROM THE COMMITTEE
MISS MARTINEZ IF YOU LIKE TO
BEGIN THANK YOU SO MUCH --
I'M CALLING TO MARTINEZ I'M
THE CEO OF A CAMEO WE ARE
STATE WIDE NETWORK OF BUSINESS
RESOURCE PARTNERS PROVIDING
SUPPORT TO VARIOUS SMALL
BUSINESSES SO OUR NETWORK HAS
OVER THREE HUNDRED AND FIFTY
ORGANIZATIONS THROUGHOUT THE
STATE INCLUDING -- TECHNICAL
ASSISTANCE PROVIDERS LIKE THE
SB SEASON W. B. C.'S INDEPENDENT
NONPROFITS AS WELL AS --
PRETTY MUCH EVERYBODY ALL THE
CITY OF FIGHTS PROVIDING SMALL
BUSINESS LOANS -- IN CALIFORNIA
WE ALSO HAVE THE CALIFORNIA
HISPANIC CHAMBER IS IN OUR
NETWORK -- WE PROVIDE THEM
WITH -- LOVE CAPACITY BUILDING
REALLY HELPING HELPING THEM
NAVIGATE ALL THE PRODUCTS AND
PROVIDE TOOL KITS FOR THEIR
CLIENTS -- WE ALSO PROVIDE
A LOT OF EDUCATION ABOUT THE
NEEDS BRING IN BEING THE BOYS OF
THIS -- NETWORK SO BRINGING THE
CHALLENGES AND EXPERIENCES THAT
WE ARE HEARING ON THE GROUND
TO A STAKEHOLDERS -- WE ARE
CONVENER WE PROVIDE A LOT OF UP
SUPPORT TO TO FOSTER ECOSYSTEMS
THROUGHOUT THE DIFFERENT
REGIONS IN CALIFORNIA SO WE ARE
CONSTANTLY SUPPORTING COALITIONS
COOPER TEASE COLLABORATIVE
SOME BRINGING TOGETHER OUR
MEMBERS -- TO PARTNER ENTER BEST
PRACTICES ARE WE THEY CURRENTLY
SERVED OVER A HUNDRED THOUSAND
VERY SMALL BUSINESSES --
A YEAR AND THAT NUMBER HAS
DEFINITELY IS K. ROCKET
AFTER IT DEPEND THAT MAKE AND
-- THEY UP WORK BUT THEY PROVIDE
CREATE AROUND A HUNDRED AND
FIFTY THOUSAND JOBS AND THEY
GENERATED AROUND ONE TRILLION
IN ECONOMIC ACTIVITY PER YEAR
MISTER CORNELIS WOULD YOU
PLEASE INTRODUCE YOURSELF
AND THE MILKEN INSTITUTE OKAY
THANK YOU FOR HAVING ME I AM
EUGENE CORNELIA SIGN THE SENIOR
DIRECTOR FOR THE SENIOR CENTER
FOR REGIONAL ECONOMICS WITH THE
MILKEN INSTITUTE AND WE ARE A
THINK TANK THAT DOES RESEARCH
IN AND ANALYSIS ON GOVERNANCE
AND POLICIES AS RE LATED TO
SMALL BUSINESSES THAT TO STATE
FEDERAL AND INTERNATIONAL LEVEL
-- I ALSO AM BUYING
THE ADMINISTRATION APPOINTEE
TO THE BOARD OF XM BANK
AND TO THE MINORITY WEALTH
COMMISSION IN ADDITION TO THAT
I SERVE TWENTY YEARS WITH THE
SMALL BUSINESS ADMINISTRATION
-- HANDLING ALL FIFTY STATES
SAYS THANK U. S. TERRITORIES
IN THE DISTRICT ACROSS THE
COUNTRY THANK YOU MESCAL
IF YOU COULD PLEASE THAT MAKE
YOUR INTRODUCTIONS AS WELL SURE
HELLO THANK YOU FOR HAVING ME
HERE TODAY I'M ALISON KELLY AND
THE CEO OF AYE CA WHERE VENTURE
CAPITAL CERTIFIED CDFI IN ONE
OF THE TWO PERCENT SLOT THERE
THAT THE L. A. O. PRESENTED
AND WE ACCELERATE GREAT
BUSINESSES THROUGH MENTORING
AND INVESTMENTS TO CLOSE THE
RACIAL AND GENDER WEALTH GAPS
WERE BASED IN OAKLAND AND WE
SERVE THE NINE COUNTY BAY AREA
REGION I CA IS THE THIRD CDFI
WORKED THAT IN THE LAST FIFTEEN
YEARS SUPPORTING EXCLUSIVELY
SMALL BUSINESSES THE ONE
PREVIOUSLY WITH CDC SMALL
BUSINESS FINANCE WHICH HAS THE
LOAN PORTFOLIO OF TWO BILLION
DOLLARS PRIMARILY IN COMMERCIAL
REAL ESTATE OWNER OCCUPIED A
BUILDING LOANS AND TRANSACTIONS
AND I CO FOUNDED THE WISDOM
FIND WHICH IS AN EFFORT TO
CREATE A LOAN PRODUCT AROUND
THE NEEDS OF WOMEN OF COLOR
BORROWERS WHY IS THIS IMPORTANT
WELL OUR FINANCIAL SYSTEM
WASN'T CREATED FOR ANYBODY BUT
WHITE MEN AND SO WHEN WE THINK
ABOUT HAVING A MORE INCLUSIVE
FINANCIAL SYSTEM AND REALLY
GETTING THESE PROGRAMS AND
DOLLARS INTO THE COMMUNITIES WHO
REALLY NEED IT MOST -- WE NEED
TO THINK ABOUT HOW WE DESIGN
THESE PROGRAMS DIFFERENTLY I
CA WE RECENTLY LAUNCHED A AN
IMPACT NOTE WHICH INCLUDES
SOCIAL RETURNS AS PART OF THE
FINANCIAL COVENANTS INSIDE THE
LOAN AT THE FINANCIAL PRODUCT
ITSELF I AS A CONVERTIBLE NOTE
AND SO THERE ARE MANY MANY
WAYS THAT WE CAN THINK ABOUT
PROGRAM SUSTAINABILITY AND
RETURNS ON INVESTMENTS AND I AM
WANTING TO CONVEY THAT HERE WITH
YOU ALL TODAY THANK YOU ALL
FOR SHARING YOUR EXPERTISE WITH
THE COMMITTEE I WILL BEGIN WITH
THE QUESTION FOR THE WHOLE PANEL
FROM YOUR PERSPECTIVE BUT WHAT
ARE THE MOST IMPORTANT ACTIONS
THE STATE CAN TAKE TO SUPPORT
THE SUCCESSFUL IMPLEMENTATION
OF THE S. S. B. C. I. PROGRAM
THE -- I'LL GO FOR OKAY
THE FIRST THING IT AND I'M
LIKE LISTEN VERY ATTENTIVELY
TO THE FIRST PANEL AND I I
WANT TO ADDRESS THE AIM OF
THE LOAN DEFAULT RATE --
JUST MERELY PUT IT IN ON
LEVEL WITH THE NATIONAL LEVEL OF
DEFAULT RATE WOULD PUT US IN A
BETTER POSITION IN PART BY RE
EVALUATING THE SMALL BUSINESS
LOAN GUARANTEE AND -- CAP
-- CAL CAP PROGRAM STANDARDS
RIGHT NOW ONE PERCENT IS NOT
GOING TO HELP YOU REACH SPEED
LIMITS IN WHICH YOU WANT TO
REACH IN THE LOW AND MODERATE
INCOME BRACKET AND INCREASING
THE DEFAULT RATE WE HAVE
A TOOL THAT WAS MENTIONED
SEVERAL TIMES THAT HELPS WITH
DEFAULT RATES WE KNOW THAT YOU
NATIONALLY CAN REDUCE --
DEFAULT RATES BY HAVING A STRONG
WORLD US TA -- PROVIDING
SYSTEM WITH THAT LONE PARTNER
WITH THE LOAN AND WE THINK
CALIFORNIA SMALL BUSINESS
DEVELOPMENT CENTERS BEING ONE
OF THE BEST IN THE COUNTRY I
THINK IT IS EASY FOR US TO LOOK
AT OUR DEFAULT RATE AND ASSESS
THE RISKS WE WANT TO TAKE IN
GETTING EIGHTY PERCENT OF THIS
COMPANY OUT IN THE FIRST TRASH
I THINK THAT IT'S CRITICAL
THAT WE LOOK AT THAT THE STATE
MUST ALSO ENSURE APPROPRIATE
INFRASTRUCTURE EXIST -- AND --
TO DISPERSE THIS MONEY OFFICIALS
EFFECTIVELY AND MAKE IT -- AND
QUICKLY ESPECIALLY WHEN WE'RE
DEALING WITH THE RECOVERY OF THE
CULVERT -- THE WE
HAVE TO HAVE THE PROPER STAFFING
WE HAVE TO HAVE THE PROPER
STREAMLINING WE HAVE TO LOOK
AT HOW WE ARE DOING
THAT REFERRAL YOU KNOW THE --
THE REPRESENTATIVE LACY WAS
MENTIONING THE RULE AREAS
WE HAVE TOO MANY DIFFERENT
WAYS THAT WE ARE COMMUNICATING
OUR PLAN WE NEED TO STRUCTURE
THAT IN A WAY THAT IS
VERY ZERO DAN TWO
ONE STOP CAPITAL KIND
OF SHOP FOR PEOPLE TO ENTRY
AND AND I THINK WE HAVE THAT
IN SMALL BUSINESS DEVELOPMENT
CENTER SO I THINK WE NEED TO
LOOK VERY CLOSELY AT HOW WE
ALIGN THAT THE LAST THING I
WOULD SAY -- BEFORE PASSING ON
TO MY OTHER PANELISTS WE HAVE
A LOOK AT ADMINISTRATIVE COSTS
AND THE COST OF CAPITAL WE CAN'T
PASS THIS ON TO THE SMALL
BUSINESSES AND ROLLED IN THESE
DEPARTMENTS THAT IN THESE CREDIT
ENHANCEMENT PROGRAMS WE SHOULD
LOOK AT OTHER WAYS TO MINIMIZE
THE COST OF CAPITAL WHEN
WE ARE TALKING ABOUT LOANS --
WHEN WE LOOK AT BUSINESSES THAT
ARE LESS THAN FIVE EMPLOYEES
-- YOU KNOW WE'RE LOOKING AT
BUSINESSES THAT ARE REALLY USING
EVERY SCRAP OF CAPITAL THEY HAVE
SO WE KNOW THAT MICROLOANS
FIFTY THOUSAND OR LESS ARE
AVAILABLE AND THEY'RE THEY'RE
THEY'RE BUT THE BAD LOAN PROBLEM
AND LACK OF SERVICES BETWEEN
THE FIFTY THOUSAND AND A TWO
HUNDRED AND FIFTY THOUSAND
LEVEL THAT IS TOO EXPENSIVE
FOR OUR TYPICAL COMMERCIAL
BANKS TO MAKE THAT LOAN WITH
THEIR HIGH PRICE LOAN OFFICERS
AN UNDERWRITING PROCESS HOW
DO WE SUPPLEMENT THAT AND HOW
DO WE USE THAT TO KEEP THE COST
OF CAPITAL DOWN IS CRUCIAL IN
THIS PROGRAM IF WE ARE GOING
TO GO INTO THAT COMMUNITY
SEVERAL I WOULD ANSWER THE
QUESTION FOLLOWING A LOT -- WHAT
MY FELLOW PANELISTS JUST MENTION
-- THERE IS DEFINITELY A BIG --
A ROBUST ECOSYSTEM OF SUPPORTING
CALIFORNIA AND I HAD THE STATE
NEEDS TO LEVERAGE THAT TO REALLY
REACH THE COMMUNITIES THAT
NEED THE CAPITOL OF THE MONTH
I CDFI IS THAT ARE PARTNERING
WITH THE STATE AND THAT ARE
CURRENTLY AVAILABLE HAVE PROVEN
DIRECTLY TO REALLY REACH THIS
COMMUNITIES AND DEPLOY CAPITAL
AND I THINK IT IS IMPORTANT FOR
US TO CONSIDER WHAT ARE THE RISK
THAT THE STATE IS WILLING TO
TAKE TO REALLY REACH STATE THAT
THAT THE BUSINESS OWNERS THAT
REALLY NEED IT SO WHEN WE ARE
TALKING ABOUT AGAIN DID FULL
RATES IS LIKE ARE WE WILLING
TO INCREASE THAT THE FULL RATE
ARE WE WILLING TO CONSIDER
ALTERNATIVE UNDERWRITING
CRITERIA THAT WOULD ALLOW US
TO ASSESS THE SMALL BUSINESSES
IN A WAY THAT ACTUALLY APPLIES
TO THEIR CURRENT CIRCUMSTANCES
-- SO IT IS REALLY IMPORTANT
OFFERED TO STAY TO REAL LEVERAGE
THAT KNOWLEDGE AND EXPERTISE
AND ALSO SUPPORT A VERY A STRONG
TECHNICAL ASSISTANCE PROPOSAL WE
DID HEAR THAT DADDY IS THE WAY
THAT THE OUTRAGE IS GONNA BEAT
DELIVERED SO HOW COULD WE REACH
HOW COULD THE STATE REALLY BUILD
INTO THE ECOSYSTEM AND THE
NETWORK THAT -- THEY HAS AND
HAD ALREADY EXISTS THROUGHOUT
CALIFORNIA TO REALLY RETURN
PROVIDE ALL RIGHTS TO THIS --
COMMUNITIES AND I WOULD LASTLY
SAY THAT UNDERSTANDING THAT THE
RESOURCE PARTNERS NEED TO BUILD
THEIR OWN CAPACITY TO DEPLOY
THIS SOUL ALL THE PROGRAMS THAT
WE ARE PUTTING TOGETHER REALLY
AREN'T TAKING A TOLL RIGHT SO
EVERYTHING HAS TO COME WITH
OUR STRATEGY TO BUILD THAT
CAPACITY IT COULD BE THROUGH
OBVIOUSLY I'LL REACH FUNDING
ADMINISTRATIVE COSTS CONSIDER
THOSE BAD REALLY UNDERSTANDING
THAT -- OLD THEY PARTNERS
NEED TO BUILD THAT CAPACITY
TO REPORT AT TO RESPOND TO
YOUR TASKS IT'S VERY IMPORTANT
SO BEAUTIFULLY SAID AND ONE
OF THE THINGS THAT WE HAVE TO
REMEMBER IS THAT THESE PROGRAMS
ARE ONLY ACCESSIBLE TO THE
FOLKS THAT WE WANT TO SUPPORT
IF THERE'S TRUST AND SO USING
THE COMMUNITY PARTNERS THAT
ARE ALREADY HERE AND DOING THE
WORK AND HAVE THE RELATIONSHIPS
IT'S NOT TRUST THAT REALLY
IS GOING TO BE THE MECHANISM
TO MAKE THESE PROGRAMS REALLY
SUCCESSFUL AND THE CAPACITY
BUILDING ALONG WITH THE CAPITAL
IS ABSOLUTELY CRITICAL WE HAVE
AN ACCELERATOR AND INVESTMENT
PRACTICE USING CONVERTIBLE
NOTES AND EQUITY INTO BUSINESSES
RIGHT INTO THE AREA THAT YOU'RE
TALKING ABOUT ABOUT FIFTY TO TWO
HUNDRED FIFTY THOUSAND DOLLARS
AND SOMETIMES UP TO A MILLION
DOLLARS AND WHAT AN ABLE BEST
TO DO THAT IS REALLY LOOKING
AT THE ENTREPRENEUR OUTSIDE OF
CREDIT SCORES CORRECT OUTSIDE
OF ASSET RATIOS NO COLLATERAL
REQUIREMENTS WHO IS THAT PERSON
AND HOW CAN WE INVEST IN THEIR
VISION AND THEIR FUTURE AND
THEN HELP PROTECT THAT --
THROUGH THE CAPACITY BUILDING
AND TECHNICAL SUPPORT SO I
THINK IT'S REALLY IMPORTANT
THAT THE THAT THAT STATE
CONSIDER THE STRONG COMMUNITY
RELATIONSHIPS HAVING FOUNDER
FRIENDLY FINANCING AND THE
COACHING CAPITAL CONNECTIONS
THAT IS CRITICAL TO GO ALONG
WITH THESE TYPES OF PROGRAMS
SO MANY TAKEAWAYS I AM SAID
TO TRULY APPRECIATE YOUR
PERSPECTIVE ON THIS SIDE LET ME
QUICKLY TURN INTO ANY OF -- MY
COLLEAGUES FURTHER QUESTIONING
ASSEMBLY MEMBER PETRIE-NORRIS
I HAVE A FOLLOW UP QUESTION
I'M STILL IN YES THANK YOU
FOR ALL OF THOSE POINTS I'M
INCREDIBLY WELL TAKEN AND I
THINK THAT'S REALLY THE POINT
AROUND DEFAULT SO YEAH ONE
PERCENT DEFAULT RATE MEANS BY
DEFINITION WE'RE NOT ACTUALLY
REALLY DEPRESSED REACHING
ANYONE WHO'S YOU KNOW HIGHER
EVEN MEDIUM RISK -- SO
I ARE THERE ANY OTHER THEIR THE
MODELS IN OTHER STATES THAT WE
CAN POINT TO AND SAY YOU KNOW
MY GOD THEY'RE THEY'RE DOING
A GREAT JOB AT THE OUTRAGE
THEY'RE DOING A GREAT JOB ON
THE -- TECHNICAL ASSISTANCE
ARE THERE SIR ANYWHERE ELSE
WE SHOULD BE LOOKING FOR
INSPIRATION YES I AM
COLORADO -- DESPITE THE
POPULATION OF CALIFORNIA
BEING EIGHT TIMES THAT OF THE
POPULATION OF COLORADO IN TWO
THOUSAND EIGHTEEN WHICH IS THE
MOST RECENT DATA I COULD FIND
COLORADO'S CASH COLLATERAL
SUPPORT PROGRAM LAVISHED
EIGHTEEN POINT NINE MILLION
DOLLARS IN LOANS AND SUPPORTED
SUPPORT FIVE HUNDRED AND
EIGHTY EIGHT BUSINESSES IN THE
SAME YEAR BY COMPARISON CAL
CAP CASH COLLATERAL PROGRAM
LEVERAGED TO TWENTY POINT ONE
MILLION IN LOANS IN SUPPORT
OF THIRTY ONE BUSINESSES
HOW CAPS CASH COLLATERAL
-- RESERVE PROGRAM ALSO
WOULD DO WELL TO INCREASED
AS I MENTIONED EARLIER
STAFFING AND CENTRALIZATION
OF THE APPLICATION PROCESS
THE OLD COLORADO IS ONE
EIGHTH THE POPULATION OF
CALIFORNIA COLORADO SMALL
BUSINESS LOAN PROGRAMS
COLLECTIVELY SUPPORTED
LOANS TO ONE THIRD AS
MANY BUSINESSES AS CAL CAP
IN TWO THOUSAND EIGHTEEN
SO COLORADO'S OUTREACH
IS IN LARGE PART DUE TO
CENTRALISATION AND THE CAPACITY
OF THIS -- COLLATERAL AND
RESERVE PROGRAM AS COMPARED
TO THE CENTRALIZATION
OF OURS IN CALIFORNIA
SO SORRY I TO MAKE SURE THAT
I DID THAT I GOT YOUR PUNCH
LINE SO YOU'RE AT IS TESTAMENT
IN TERMS OF WHY THEY ARE BEING
RELATIVELY MORE EFFECTIVE HAS
TO DO WITH THE FACT THAT THEIR
PROGRAMS ARE MORE CENTRALIZED
YES IS CENTRALIZE IS SUPPORTED
BY THE STAFFING THAT IS REQUIRED
SEEK TO IMPLEMENT SUCH A
PROGRAM AND ITS OUT REACH
COLORADO DOES NOT ENGAGE
IN SO MANY AS A CALIFORNIA
AND A DIVERSITY OF TECHNICAL
ASSISTANCE BUT FOCUSES ITS
TECHNICAL ASSISTANCE PROGRAM
IN ONE AREA THAT REACHES OUT
TO THE TO THE COMMUNITY AND
THAT IS IN THE RULES AND IN THE
MINORITY AND LOW AND MODERATE
INCOME AREAS AND I THINK AND
THEN WE HAD AND MADE THIS
POINT AND THE OTHER PANEL THAT
WE HAVE SO MANY PROGRAMS HAVE
SO MANY RESOURCES AVAILABLE
AND IT IT NEARLY IMPOSSIBLE FOR
YOUR REGULAR PERSON TO NAVIGATE
AT TIMES IMPOSSIBLE FOR US IN
OUR STAFFS TO NAVIGATE THAT
AND I THINK THE POINT YOU'RE
MAKING IS BY SIMPLIFYING THAT
BY STREAMLINING SOME OF THAT WE
CAN GET MORE HELP TO YES THE
SMALL BUSINESS COMMUNITY NEEDS
ONE PLACE TO GO GET IN ANY ONE
PLACE TO START WE HAVE SET THEM
UP WHERE THEY ARE DIVIDED IS
TOO DEPENDING ON WHERE THEY
ARE AND WHO THEY'RE TALKING TO
WHERE THEY'RE GOING AND THAT IS
THE FIRST CONFUSION AND WHEN
YOU ARE AND WHEN ENGLISH IS NOT
YOUR SECOND LANGUAGE AND WHEN
YOU ARE IN COMMUNITIES RURAL
COMMUNITIES LIKE HE WAS SPEAKING
IF YOU DON'T HAVE A COMMUNITY
BASED THAT THEY CAN GO TO ONE
PLACE AND COME COLLECT THAT DATA
IT MAKES IT DIFFICULT AT THE
DOOR YES YEAH YOU'RE YOU'RE ONLY
GONNA HEAR ONE NOW YOU'RE NOT
GONNA KEEPING YOUR HEAD AGAINST
A WALL SOMETIMES THAT'S WERE
ASKING PEOPLE TO DO THANK YOU
I'M CURIOUS IF YOU CAN AFTER
HEARING THE PANEL ONE YOU'VE
BEEN IN THE AUDIENCE AND SEEN
WHAT'S BEEN HAPPENING CALL AND
CALIFORNIA AND IN COMPARISON
TO THE COLORADO WHAT CAN
YOU SUGGEST ARE THINGS THAT HAVE
BEEN WORKING AND NOT WORKING
BASED ON BEING -- WORK THAT
YOU DO AND WHAT IMPROVEMENTS
THAT CAN BE MADE IN ROUND TWO
WELL I WOULD -- HI TECH HERE
-- I THINK THE SMALL BUSINESSES
AS WE ALL KNOW HALF A SUMMIT
UNPRECEDENTED CHALLENGES RIGHT
READ EVERYTHING THAT HAS BEEN
DONE IN THE PAST COUPLE OF
YEARS HAS GIVING AS A LOT OF
LEARNING LESSONS LEARNT SO WE
SHOULD DEFINITELY LEARN FROM
THEM AND DO THE STARTED --
BUILDING UPON THAT AS WE'RE
PUTTING TOGETHER DO YOU THE
NEW PROGRAMS STILL SOME OF
THE LESSONS WE LEARNED DURING
THE PANDEMIC RELIEF EFFORTS I
WOULD SAY IS FIRST CALIFORNIA
HAS A VERY STRONG AND OPEN
REALITY CONSISTENT -- SO WE
SHOULD BE LEVERAGING THAT TO
REACH COMMUNITIES AND DEPLOYED
AND EDUCATE ABOUT THE PROGRAMS
AVAILABLE -- THEY UNDERSERVED
AS SMALL BUSINESS COMMUNITIES
NEED MORE TIME AND ALL RIGHT
TOUCH POINTS TO BUILD TRUSTS
STILL GOING TO WHAT -- ALSO
WAS MENTIONING BEFORE IS WE
NEED TO BILL TRIES TO REACH
REALLY BEING ABLE TO ADVISE
THEM INTO WHAT PRODUCTS THEY
SHOULD PICK SO THAT IS SOMETHING
THAT NEEDS TO BE UNDERSTOOD
AND THE THIRD IS OUT LANGUAGE
AND CULTURALLY APPROPRIATE
RESOURCES ARE NEEDED TO REACH
DISADVANTAGED COMMUNITIES SO
WE'VE BEEN MENTIONING A COUPLE
TIMES DURING THE PREVIOUS PANEL
AND DURING THIS PRESENTATION
IS THE LANGUAGE BARRIERS
AND DIGITAL DIVIDE ARE AT
PEAK CHALLENGE FOR THE SMALL
BUSINESSES SO UNDERSTANDING
THAT IS A CHALLENGE AND REALLY
ARE INCLUDING IN THE STRATEGY
TO IMPLEMENT A PROGRAM IS
GOING TO BE VITAL T. -- BUILD
THAT THIS SUCCESS AND FOURTH
COMMUNITY ORGANIZATIONS ARE
CRUCIAL FROM AS SPREADING THE
INFORMATION -- THE SAME BECAUSE
THE DIGITAL LITERACY IS A
TALENT WE NEED TO REALLY MAKES
THE WAY THAT WE ARE DOING OUR
EACH IS TRADITIONAL AVERAGE
BUT HE'S ALSO REALLY BUILDING
AND LEVERAGING THEY ARE RICHARD
AND COMMUNITY ORGANIZATIONS
THAT ARE ABLE TO FIND A SMALL
BUSINESSES WHERE THEY ARE
THIS IS A LITTLE TRICKY RIGHT
BECAUSE -- WE ARE DEALING
WITH AN UNPRECEDENTED SITUATION
RIGHT NOW AND WE HAVE THIS
ENORMOUS INFUSION OF CAPITAL
COMING INTO THE STATE CALIFORNIA
IS ONE OF THE MOST INNOVATIVE
FORWARD THINKING LEADERS AS
STATE LEADERS IN OUR COUNTRY
WE HAVE AN OPPORTUNITY TO DO
SOMETHING REALLY DIFFERENT
HERE WE HAVE AN OPPORTUNITY
TO ACTUALLY LOOK AT HOW WE'RE
DEPLOYING CAPITAL AND USING
THE TOOLS AND THE RESOURCES
THAT WE HAVE AVAILABLE TO MAKE
-- CAPITAL PROGRAMS AND SUPPORT
PROGRAMS OPERATE IN A DIFFERENT
KIND OF WAY THAN THEY HAVE IN
THE PAST MY BIGGEST CONCERN
IS WE'RE GOING TO CONTINUE TO
MOVE MONEY IN THE PAST IN THE
CHANNELS THAT WE HAVE ALREADY
AND EXPECT A DIFFERENT RESULT
-- CDFI IS I'VE BEEN IN THIS
INDUSTRY FIFTEEN YEARS I LOVE
THIS INDUSTRY THE RACIAL AND
GENDER WEALTH GAPS HAVE GROWN
SAID SEE IF I'D HAVE BEEN DOING
THIS WORK THE IMPACT IS REALLY
GOOD THE OUTCOME IS NOT WHAT WE
WANT TO SEE CALIFORNIA HAS AN
OPPORTUNITY I BELIEVE TO START
WORKING TOWARDS A VERY DIFFERENT
OUTCOME AND LOOKING AT HOW WE
SOLVE THIS COMPLEX PUZZLE AND
IT IN ANY WAY AND IT'S LEADERS
LIKE THAT MY CO PANELISTS HERE
AND THE ONES BEFORE US THAT I
THINK CAN WORK TOGETHER TO COME
UP WITH SOME THANK YOU MISS
KELLY IF IF I CAN FOLLOW UP
ON ON SOMETHING THAT WAS --
YOU ACTUALLY SHARED EARLIER
YOU KNOW BASED ON THE CURRENT
AVAILABILITY OF FUNDING BETWEEN
THE PRIVATE AND PUBLIC SECTORS
WHAT SHOULD BE THE DESIRED
BALANCE BETWEEN FUNDING SMALL
BUSINESS START UPS BUSINESS
EXPANSION CERTAIN INDUSTRY
SECTORS MICRO BUSINESSES
WHAT ARE YOUR INSIGHTS
MY MAGIC BUT NOT
YOU KNOW I THINK --
THE BALANCE NEEDS TO REFLECT THE
COMMUNITIES THAT WERE SERVING
PERIOD AND SO WE HAVE --
WOMEN OF COLOR SPECIFICALLY
BLACK WOMEN START BUSINESSES
THAT THE HIGHER IS HIGHEST RATE
OF ANY OTHER DEMOGRAPHIC IN OUR
IN OUR STATE AND OUR COUNTRY
I'M THEY'RE NOT ACCESSING THAT
WHERE ARE THEY ACCESSING THAT
WILL BE DEBT PROGRAMS WEREN'T
BUILT FOR HER RIGHT THE THE
THE CREDIT CRITERIA THAT CREDIT
SCORES IN THE ASSET RATIOS
AND ALL OF THESE COLLATERAL
REQUIREMENTS DON'T GIVE HER ANY
TRUST ACTUALLY IN THE SYSTEM
THAT IT'S GOING TO SUPPORT HER
SO WHEN WE LOOK AT THINKING
ABOUT HOW WE CAN ALLOCATE THESE
FUNDS WE NEED TO CONTINUE TO
THINK ABOUT WHAT WHAT ARE THE
WAYS IN WHICH WE CAN FOSTER
FLEXIBILITY -- WHAT ARE THE
WAYS IN WHICH WE CAN FOSTER
-- ENTREPRENEURS TO HAVE TRUST
IN CONTINUE TO TRUST THAT THE
PARTNERS THAT THEY'RE WORKING
WITHIN THE COMMUNITY BUT THEN
ALSO THOSE PARTNERS HAVE THE
TRUST FROM THE STATE AND THE
FEDERAL GOVERNMENT THAT WE ARE
GOING TO BE RESPONSIBLE AND HOW
WE DEPLOY THESE CAPITALS BECAUSE
LOOK IF WE FAIL WE'RE THE ONES
HAVING TO LOOK AT THESE PEOPLE
OUR COMMUNITY IN THE EYE AND
SAY SORRY WE HAVE NOTHING LEFT
FOR YOU SO WHEN I THINK WHEN WE
THINK ABOUT THIS DISTRIBUTION
YES I CAN GIVE YOU DATA ON YOU
KNOW THE ACT EXACT DISTRIBUTION
BETWEEN BUSINESS SIZE SECTOR
AT CETERA BUT REALLY I THINK
WHAT WE SHOULD BE THINKING ABOUT
IS HOW DO WE CREATE FLEXIBILITY
AND INCENTIVIZE FLEXIBILITY AND
HOW WE DISTRIBUTE THIS MONEY FOR
I WOULD LIKE TO ADD TO THAT
I THINK WHAT WE CAN DO AT THE
BEGINNING IS WE CAN LOOK
AT THE LIFE CYCLE OF OUR
BUSINESSES ARE THEY START UPS
ARE HAVE THEY BEEN IN BUSINESS
FOR THREE OR MORE YEARS DO THEY
EMPLOY A FIVE OR MORE PEOPLE
ARE THEY AT THE POINT OF A
REPORTER EXPORTING OUT WE KNOW
THAT WHEN WE LOOK AT SMALL
BUSINESSES ESPECIALLY THOSE WHO
HAVE FIFTEEN EMPLOYEES ARE LESS
THEY CREATED TWO THIRDS OF ALL
THE NET JOBS SINCE THE GREAT
RECESSION OF TWO THOUSAND NINE
WE ALSO KNOW THAT FORTY PERCENT
OF THEM ARE WOMEN AND OF THAT
FORTY PERCENT SEVENTY PERCENT OF
THEM WERE WOMEN OF COLOR GETTING
TO HER POINT IN WHAT SHE'S
SAYING HERE IF WE CAN MEET THEM
WHERE THEY ARE IN THEIR BUSINESS
AND HAVE THAT FLEXIBILITY WE
WILL KNOW BASED ON USE OF FUNDS
WHAT KIND OF LOANS TO DO THAT
AND I THINK WE HAVE
AN ADVANTAGE HERE IN CALIFORNIA
BECAUSE I BANK HAS THE
FACILITIES TO ACTUALLY IMPLEMENT
THAT KIND OF THING IT WOULD
DECIDE QUICKLY -- I COMPLETELY
AGREE WITH THE IDEA OF I HAVE
FLEXIBLE -- FLEXIBILITY IN THE
PRODUCTS AND JUST TO KEEP IN
MIND WHEN THE COBBETT ONE COPY
TO STARTED A LOT OF RELIEF
PROGRAMS GAME FOR EXISTING
BUSINESS TO KEEP THEM AND IN IN
OPERATIONS WHICH OBVIOUSLY WAS
THE NATURAL NATURAL THING T.
DO BUT AS WE WERE LOOKING AND
WE ACTUALLY I STARTED SEEING
A LOT OF OUR MEMBERS TO START
SEEING A START UPS AS THEY WERE
COMING AND THEY WERE NOT THAT
MANY PRODUCTS FOR THEM AND
IT WAS COMPLETELY REASONABLE
TO HAVE TO START UPS RIGHT IT
WAS A LOT OF PEOPLE THAT WAS
BEING LAID OFF THAT THEY WERE
ACTUALLY TRYING TO RETHINK WHAT
THEY WANTED TO DO RIGHT SO I
NAMES LOOK IN ANY CALIFORNIA
ACTUALLY HAD IN OVER A THOUSAND
PERCENT INCREASE IN THE NUMBER
OF NEW BUSINESS THAT'S WHEN
I SAW THAT IS LIKE A THOUSAND
PERCENT INCREASE AND OUR
MEMBERS DIDN'T HAVE THE PRODUCT
AVAILABLE FOR TO START UPS AT
THAT MOMENT SO AS THE ECONOMY
RECOVERS THERE'S GONNA BE A
LOT OF CHALLENGES THAT -- WE'RE
GONNA BE SEEING AND FLEXIBILITY
WILL BE KEY TO RESPOND
TO THOSE NEEDS AND REALLY
HAVE A SUCCESSFUL RECOVERY
ANY OTHER QUESTIONS OF
OUR VICE CHAIR SECRETARY
YEAH THANK YOU THE NEW IS
SO OVERWHELMING SO MANY
DIFFERENT PROGRAMS SO LET ME
-- ADDRESS -- I I KNOW
YOU YOU SOUND LIKE A DSL OR
-- -- DIFFERENT -- CATEGORY
SUPPORT BUSINESSES SO THE FIRST
QUESTION IS SO WELL DO YOU HAVE
ANY OFF PRIORITY WAFFLE
BECAUSE SELF OF THE STARTUPS
ALIGHTING SYSTEM ONES SO ARE
STRUGGLING COMPANIES I'M
MORE INTERESTED IN NOT KNOWING
IF YOU HAVE ANY NOW PROGRAM SO
I HAVE OUT OF THE BUSINESSES
-- THAT THE HAVE GONE OUT OF
BUSINESS -- BECAUSE SOME OF A
LACK OF -- CUSTOMERS SO WORK
COULDN'T PAY THE RENT OR
WHATEVER THEY ARE OUT OF THE
PICTURE AND THAT THEY ARE NOT
BENEFITING ANY PROGRAM SAID
THAT THE SO MUCH MONEY THAT
THE GUYS TALK ABOUT COMING FROM
FEDERAL GOVERNMENT -- SO MAYBE
YOU CAN ADDRESS THAT FIRST
WELL I WOULD SAY THAT
YOU HAVE TO MEET THE BUSINESS
WHERE THEY ARE AND IT IS VERY
DIFFICULT TO HAVE ALL OF COOKIE
CUTTER PREDICTIONS BECAUSE
ENTREPRENEURS COME FROM ALL
KINDS OF DIFFERENT INDUSTRIES
IN ALL TYPES OF TYPES OF DID
BUSINESS START UPS SO YOU YOU
WOULD HAVE TO IN THIS IS WHY
IT IS KEY TO HAVE COUNSELING
AND TECHNICAL ASSISTANCE NOT
JUST TRAINING BUT COUNSELING
TO GET TO UNDERSTAND THAT
ENTREPRENEUR GET UNDERSTAND
HIM OR HER AND IN THE PROCESS
AND WHAT THEY'RE TRYING TO
SELL A AND HOW I WILL
HANDLE OR COUNCIL AND RESTAURANT
WOULD BE COMPLETELY DIFFERENT
THAN FINANCIAL SERVICES OR
PROFESSIONAL SERVICES AND
HOW I WOULD COUNSEL SOMEONE
THAT HAS BEEN IN BUSINESS
FOR TWO TO THREE YEARS VERSUS
SOMEONE THIS COMING FROM THEIR
INITIAL THOUGHT AND PATTERNS
TO IMPLEMENTATION TO COVER
COMMERCIALIZATION WOULD BE
TOTALLY DIFFERENT SO IT IT'S
REALLY HARD FOR ME TO SAY TO
YOU THAT I WOULD HAVE A WAY
OF APPROACHING HIM BUT WHAT I
WOULD SAY THAT I THINK IS KEY
TO ALL OF THEM IS THAT THEIR
FIRST THING IS TO UNDERSTAND
THE FINANCIAL -- OBLIGATIONS
THAT THEY HAVE WHAT IS THEIR
COST OF OPERATIONS WHAT IS THEIR
PROFITABILITY WHAT IS THEIR
REAL PAID REPAYMENT ABILITY
WHEN THEY LOOK AT DEBT AND
AND IF IS IS THAT REALLY WHAT
THEY NEED TO GO FOUR VERSES
IS IT VENTURE CAPITALISTS OR
IS IT SOMETHING THAT THEY CAN
MAINTAIN THROUGH THEIR OWN
PROFITS AND CASH FLOW SO YOU
THESE THINGS HAVE TO BE AND NOW
WITH ANALYZE VERY THOROUGHLY
INTO THEIR PROCESS AND I I
THINK THAT IS KEY THAT
WE DON'T TRY TO SET UP
A A ONE STOP ONE
KIND OF PROGRAM THAT
WOULD -- ALIENATE
AND AND NOT INCLUDE PEOPLE THAT
HAVE THAT FLEXIBILITY IN THEIR
OPERATIONS SO FOR THOSE --
ALREADY -- BUSINESS OF
BUSINESS RIGHT NOW BECAUSE SO
-- TO CONTRIBUTE LARGELY
TO TO -- FINANCIAL --
-- TO STREAMS -- JUST ON A
COUPLE REVENUE AND
ON THE OUTSIDE THE RESOURCE IS
-- THEY HAVE A GIVE UP BY
AND SO FOR THE FOR THE --
SO ON TIA'S DAY INITIATE
THAT THAT THEY WERE NOT
REVIVED THEIR -- BUSINESS BAD
AND THEN APPLY FOR IT THOUGH
YOU'RE NOT GONNA KNOW WHO
THEY ARE YOU DON'T REACH OUT
TO THEM WELL I I I DISAGREE
I THINK THAT IS A VERY GOOD
POINT SIR AND I THINK WE
SHOULD BE MORE PROACTIVE WITH
THIS EXTRA MONEY THAT WE ARE
GETTING THIS ONE TIME OBLIGATION
WE CAN USE THIS AS A LAB TO
SEE HOW WE DO WE CAN EMPLOY
A SOME OF THE FUNDS IN THIS
TEAM TECHNICAL ASSISTANCE AND
AND GIVE A DIRECTIVE TO OUR
SMALL BUSINESS DEVELOPMENT
CENTERS TO GO OUT PRO ACTIVELY
AND AND DO SURVEYS AND GET INTO
THESE COMMUNITIES AND FIND OUT
WHAT OUR COMMUNITIES NEED --
ONE OF THE THINGS WE CAN DO
ALSO IS SUPPORT THE CURRENT
BILL WE HAVE A BILL WHAT IS
A ONE STOP CAPITAL SHOPS AB
TWENTY THREE SEVENTY SIX WE WANT
TO LOOK THESE KINDS OF THINGS
WILL NOT ONLY HELP BUT THEY
WILL HELP US COLLECT COLLECT
DATA TO FIND OUT WHERE OUR
BUSINESSES ARE WHAT IS GOING ON
WITH OUR BUSINESSES AND IN SOME
CASES EVEN HELP US GET
AROUND THE LIMITATIONS OF --
TWO OH NINE SO I THINK THAT
WE IF WE COULD COLLECT THOSE
-- THAT INFORMATION WE CAN BE
MORE INNOVATIVE WE CAN BE MORE
PROACTIVE WE CAN ACTUALLY NOT
WAIT FOR THE SMALL BUSINESS TO
YELL HELP BUT ACTUALLY GOING TO
COMMUNITIES AND AND FOUND OUT IN
THE SYSTEM NOW AS FAR AS I KNOW
A BEING A FORMER MAYOR OF
A CITY OF IRVINE AND ALL
THE BUSINESSES IN THE CITY
WE HAVE REQUIRED THEM TO
REGISTER AND THEN WHEN THEY
CLOSE DOWN WHEN THEY NEED TO
REPORT TO US SO WE KNOW WHICH
BUSINESSES EXISTED AND THE WHICH
BUSINESSES NOW HAVE CLOSE DOWN
SO WE DO HAVE WITH DATA WHICH
WANTS TO WE HAVE -- REACHED
IT WE HAVE LOST IN THE THOSE
ARE THE ONES SO WITHOUT
IN ANY AND LOCAL GOVERNMENT OR
STATE GOVERNMENT WILL INITIATE
THE REACHING OUT TO THEM HEY
WHAT CAN I KNOW WHAT CAN WE DO
FOR YOU TO COME BACK AND
HELP YOU GROW YOUR BUSINESS SO
RESTART THE ARE YOU DOING THAT
WELL I I THINK THAT IN THAT LIFE
CYCLE YOUR LITTLE TOO LATE --
I THINK THAT THAT WE NEED TO BE
NOT JUST REGISTERING THEM AT THE
BEGINNING AND THEN DOING AN EXIT
INTERVIEW AS A CLOSER LOOK LOSE
THEIR BUSINESS BUT WE SHOULD
BE IN THERE IN THE TRENCHES
TRYING TO FIND OUT WE'RE IN THE
RED FLAG IS LIFTED WHERE THEY
WOULD NEED HELP THAT IS
NOT A GOVERNMENT ROLE THAT
IS THE ROLE OF OUR SMALL
BUSINESS DEVELOPMENT CENTERS
OF OUR TECHNICAL ASSISTANCE
PEOPLE AND IF WE EMPLOY THEM TO
DO THIS IF WE GIVE THEM
THE RESOURCES TO ACTUALLY GET
INTO OUR COMMUNITY AND I HAD
TO HAVE A FINGER IN THE POLLS
ON OUR SMALL BUSINESSES BEFORE
THEY ARE AT THE POINT OF
CLOSURE THEN WE ARE HOLDING ON
TO SUSTAINABILITY THEN WE ARE
MOVING IN AND EXPANDING GROWTH
AND NOT ONLY CAN WE DO IT AT THE
POINT OF OF NOT LETTING THEM
DIE BUT ALSO HELPING THEM EXPAND
OPENING INTO NEW MARKETS OPENING
INTO THE MIDDLE OPPORTUNITIES
BECAUSE WE'RE TALKING ABOUT
ACCESS TO CAPITAL BUT REALLY
WHAT KEEPS A BUSINESS GOING
IS AT ACCESS TO OPPORTUNITY
SO I THINK WE WE NEED TO LOOK AT
BOTH YEAH I HAVE A COUPLE MORE
QUESTIONS SO AMONG THE MANY --
ONE OF THE RESTAURANT OWNER SAID
THAT I HAD WITH THE KNOWN --
I CALLED HIM AND HE SAID THE
I. SHUT DOWN BUT I STARTED
AS TO A DIFFERENT CITY
THE REASON WAS THAT THE --
THEY ARE RENT WENT UP BY A
-- -- -- PROPORTIONALLY
TOO MUCH AND THAT HE COULDN'T
SUSTAIN SO HE HAS
TO GO OUT OF FLOOD THAT THE
PARTICULAR CITY AND THEN LOOK
FOR WHERE HE COULD AFFORD TO
IN THIS CASE SO HE HAD THE
SOME ASSETS THAT TO CONTINUE
BUT THE SOME OF THE -- PEOPLE
MAY GIVE UP AND COULDN'T
HANDLE SO WE HAVE SEEN MANY
RENT CONTROL FOR OUR RESIDENTS
FOR PROFIT THE HOME IN
OUR APARTMENT RENTERS SO
BUT I I DON'T THINK
I REMEMBER WHETHER THERE'S ANY
RENT CONTROL OR OUR RANGE
THAT THE ATTENDANCE IT WOULD
NOT BEST MORE BUSINESS IT
WOULD NOT BE BONTA WITH THAT
KIND OF OUTRAGEOUS TO RAISE
IT AS A SENSIBLE AREA FOR
ME TO TALK ABOUT THAT BUT
THE WHETHER THERE IS ANY
REGULATION THAT -- --
THE ONLY REASON I THINK
OF WHAT RAN THE AWARD FOR
MOST OF EXISTING BUSINESS
WATER BUSINESS SAID DO YOU
KNOW ANYTHING ABOUT THAT
I DO KNOW THAT AT THE LOCAL
LEVEL MUNICIPALITIES TEND
TO HAVE -- BUSINESS SUPPORT
AND TAXES -- CREDIT FOR
SMALL BUSINESSES IN ORDER
TO SUSTAIN THEIR OPERATIONS
WITHIN THEIR CITY -- I DON'T
BELIEVE THAT THAT'S THAT
QUIBBLING AT THE STATE LEVEL
AND I'M NOT SURE IT WOULD BE
INAPPROPRIATE BUT I DO THINK
THAT LOCAL MUNICIPALITIES HAVE
THE JURISDICTIONS TO --
IN START UP CASES PUT ON SMALL
BUSINESSES IN INCUBATORS ORIENT
IN ACCELERATORS OR IF THEIR
EXISTING BUSINESS TO ALLOW THEM
SOME KIND OF RATE REDUCTION
OR TAX CREDIT -- TO COMPLICATE
THEIR CASH FLOW IN ORDER TO
KEEP THEM IN OPERATIONS IN
THAT IN THAT GOES ON BERMAN
IS A PENALTY BY MUNICIPALITY
YEAH I WOULD DECIDE THAT
-- A LOT OF STATE RESEARCH
PARTNERS AND COMMUNITY
ORGANIZATIONS ON THE GROUND
HAD -- DISCOVER I LIKE THAT
HAS BEEN A BIG CHALLENGE WHEN A
SMALL BUSINESSES STARTING TO I
SEE THAT MAYBE CLOSING WAS THE
SOLUTION OR THE EXIT STRATEGY
UNFORTUNATELY SO THERE IS A LOT
OF -- PROGRAMS THAT HAVE BEEN
PUT OUT OF THEIR WAY TO GUIDE
A SMALL BUSINESSES THROUGH THE
PROCESS TO SEE IF THAT IS REALLY
THE RIDE OP NEXT A STEP
OR IF THERE IS ANY SOLUTION
THAT COULD BE DONE BEFOREHAND
I THINK THIS IS ALSO SOMETHING
THAT BROUGHT BRINGS US BACK TO
THE OUTREACH WE NEED TO KNOW
TO DO BECAUSE THERE IS A LOT OF
A SMALL BUSINESSES THAT WE'RE
SUFFERING THROUGH THAT A WE'RE
NOT AWARE OF A LOT OF LIKE LEGAL
ASSISTANCE WORKSHOPS THAT COULD
COULD HAVE HELPED THEM WITH THE
RENT -- CONTRACTS OR WITH THE
LEASES SO BEING ABLE TO GET
THEM WE THOUGHT THOSE RESOURCES
IT'S KIND OF REALLY BRINGS OUT
MORE -- LIKE BRING SOME MORE
-- IMPORTANCE TO THE NEED OF
CONNECTING THEM TO THE RIGHT
ORGANIZATIONS YEAH
U. S. MORE A BUSINESS OWNER
MYSELF FROM MY OFFICE MANAGING
WITH NOW -- IS THERE ANY
-- ONE STOP THE EASY WAY
FOR BUSINESS PAPER TO GO TO
AND THEY LEARN ABOUT THE WHOLE
SO MANY DIFFERENT KINDS OF
-- HELPING MONEY AGENCIES
OR COUNSELING WHATEVER THE
STATE WILL BE A ONE STOP
THERE'S A BILL YOU'RE PUSHING
INTO AB TWENTY THREE SEVENTY
SIX YEAH HE TERRY NORRIS WHO
I DON'T YES ON THE ON
I WILL BE HERE IN THE BILL IN
COMMITTEE SO DOCTOR CHARM SURE
YOU AND YOU HAVE THE PLEASURE
SPEAKING ON THAT BILL THEN
IT'S CERTAINLY AN EXCITING BILL
THAT WILL BE HELPFUL AND --
BRING IN EVERYTHING ONE
CENTRALIZED LOCATION I DO WANT
TO JUST TAKE NOTE OF THE TIME
I KNOW THAT WE HAVE ONLY A FEW
MOMENTS LAST MINUTES LOTS OF
THIS PANEL A DOCTOR TODAY HAVE
ANY CLOSING COMMENTS AT THE
MOMENT THANK YOU ABSOLUTELY
ALL RIGHT SO LET ME JUST
CLOSE I I DO HAVE ONE FINAL
QUESTION FOR THE PANEL ASIDE
FROM THE FINANCING PROGRAMS
IT THEMSELVES WHAT IS THE MOST
IMPORTANT ACTION THE STATE
CAN TAKE TO LEVERAGE THE S.
S. B. C. I. PROGRAM -- FUNDS
IN CREATING A MORE INCLUSIVE
ECONOMY INCLUDE THE COMMUNITY
THAT YOU WANT TO SERVE AS
YOU DESIGN THE SOLUTION
LOOK AT THE INHERITED
BIASES THAT THE UNDERWRITING
PROCESS AND COMMERCIAL LENDING
IN STEALS WITH THE FIVE
SEAS OF CREDIT -- COLLATERAL
MANAGEMENT EXPERIENCE --
THINGS THAT THEY ARE REQUIRING
SMALL BUSINESSES TO HAVE
AS THEY TRIED TO START A
SMALL BUSINESSES IT'S LIKE THE
CHICKEN BEFORE THE EGG IS IT'S
NOT IT'S INHERENTLY NOT FAIR
AND I WOULD SAY THAT I WOULD
JUST REITERATE THE IDEA OF
LEVERAGING -- THE ECOSYSTEM
AND THE DIFFERENT COMMUNITY
ORGANIZATIONS I WOULD BE ABLE TO
CONNECT THEIR SMALL BUSINESSES
SO THE RIGHT TOOLS -- I THINK
IT IS VERY IMPORTANT FOR US
TO CONSIDER ALL THAT IT'S JUST
LIKE THE SYSTEMIC BARRIERS WE
HALF RIGHT SO AS WE ARE LOOKING
DEFINITELY COMING BACK TO IS
THE WRATH AND ALTERNATIVE UNDER
GLIDING THERE IS A LOT OF --
PILOT PROGRAMS THAT HAVE BEEN
PUT OUT THROUGHOUT THE STATE
FOR TO DO TWO I HAVE A LONG
WAY TO SMALL BUSINESS SAYS BUT
THERE IS ALSO SOME MANAGE OP
SUPPORT TO REALLY UP PROVIDE
THAT I'LL REACH IN CONNECTION
TO A WOMEN OWNED BUSINESS SAYS
MINORITY OWNED BUSINESSES AND
ENTREPRENEURS OF COLOR SO BEING
ABLE TO REALLY GET DIED TO --
SUPPORT OF PARTNERS THAT ARE
WE ARE OLD TEAM CALIFORNIA
THAT WAS BUT WE WERE TALKING
SO HOW COULD WE ALL COME
TOGETHER TO REALLY REACH A
SMALL BUSINESSES AND -- DID FOR
THE SIGN A PROGRAM THAT REALLY
TAKES INTO ACCOUNT THE NEEDS OF
THE COMMUNITIES WILL BE A KEY
THANK YOU SO MUCH I TO EACH
OF YOU FOR YOUR DYNAMIC
PRESENTATIONS I KNOW THAT WE
DO HAVE ONE OPPORTUNITY TO
BRING BACK UP I BANK IN C. B.
CFA R. FOR AN OPPORTUNITY
TO RESPOND TO ANY COMMENTS OR
RECOMMEND MAKE RECOMMENDATIONS
MADE DURING THIS HEARING
AS WELL AS ANSWER ANY FINAL
QUESTIONS FROM COMMITTEE
THANK YOU CAN THANK YOU
THANK YOU FOR OUR FINAL WE HAD
A FINAL -- PANEL WHICH WAS
-- WE ACTUALLY REALIZED
THAT ITS IT'S --
AT MISTER SCOTT WILL WITH I.
BANK AND MICHELA DEVISE DANIEL
WITH CP CFA FOR OUR THIRD PANEL
SO WE APPRECIATE -- TREASURE
BY YOU STAYING WITH US IN AND
JOINING US -- AGAIN FOR THE
THIRD PANEL AND AGAIN THANK
YOU AGAIN TO THE PANEL NUMBER
-- TO THE JUST LEFT ANOTHER
HOW TO CATCH A FLIGHT ONLY
APPRECIATED THERE WAS A LOT OF
CONVERSATION DONE AT NIGHT YOU
KNOW WANTED TO MAKE SURE THAT WE
WE GOT TO THE PANEL IN TIME
AND WE LEFT OFF -- WITH SEVERAL
QUESTIONS I JUST KIND OF
WANTED TO GO BACK TO IT BUT
SPECIFICALLY HOW AND AND BASED
ON THE CONVERSATION THE HER
TODAY ON HOW CONFUSING AT ALL
IS RIGHT FOR SOMEBODY JUST
TRYING TO GET ASSISTANCE HOW AN
APPLICANT KNOW ABOUT THESE TWO
PROGRAMS WILL SEE P. CFA OR
AYE BANK REFERRED THEM TO THE
PROGRAMS AND WHAT IS THE ROLE
THAT TECHNICAL ASSISTANCE WILL
PLAY WITH BOTH C. P. CFA AND
I BANK YEAH SO -- OTHER
START OFF AND THEN SCOTT MAYBE
CAN TALK A LITTLE BIT MORE ABOUT
TECHNICAL ASSISTANCE BUT WE ARE
ALWAYS TALKING ABOUT THE TWO
PROGRAMS SIMULTANEOUSLY LATE
THAT CAL CAP WE HAVE A LOAN
LOSS GUARANTEE PROGRAM I BANK
I'M SORRY WE HAVE A LOAN LOSS
RESERVE PROGRAM THE I. BANK
HAS A LOAN GUARANTEE PROGRAM
AND SO THEY ARE TO COMPLEMENT
EACH OTHER LIKE MR BUYS DANIEL
SAYS AND NOT COMPETING AGAINST
EACH OTHER SO WE TALK ABOUT IT
AS ONE PACKAGE NOT A COMPETITION
-- I DO HAVE SOME RESPONSES TO
SOME OF THE THE LAST PANEL
UP YOU KNOW I THANK IN C. P. CFA
WE ARE TO AGENCIES IF YOU LOOK
AT THE S. S. B. C. I. REPORT
FROM THE LAST ONE IN TWENTY
ELEVEN ALMOST ALL THE STATES
HAD TO ENTITIES THAT DISTRIBUTED
THE FUNDS WHETHER IT WAS TO
PUBLIC ENTITIES OR A PUBLIC AND
A PRIVATE ENTITY AND I REALLY
THINK THIS GOES TO THE CHECKS
AND BALANCES THAT PEOPLE WANT
TO INSTILL IN THIS PROGRAM
THAT YOU DON'T GO TO ONE PROGRAM
THEY SAY NO BUT THEN YOU HAVE
ANOTHER OPTION RIGHT SO THERE'S
LIKE TWO BITES OF THE APPLE
INSTEAD OF JUST ONE AGENCY THAT
ONCE YOU SAY NO THAT'S IT RIGHT
YOU HAVE NO OTHER OPTIONS AND
I THINK THAT'S WHY IT WAS SET
UP THIS WAY AS WELL WITH A BANK
AND A C. P. CFA BECAUSE YOU
NEVER KNOW WHO'S GOING TO BE
THE EXECUTIVE AND WHO'S GOING
TO BE THE TREASURE AND SOMETIMES
EXECUTIVE MAY NOT HAVE THE SAME
-- PRIORITIES AS THE LEGISLATURE
AND SO THE LEGISLATURE HAS --
INSTILLED IN THE TREASURE WITH
THE COMPTROLLER'S OFFICE OR
SOME OTHER AGENCY TO MAKE SURE
THAT THERE ARE -- CHECKS AND
BALANCES PEOPLE WORKING TOGETHER
COLLABORATING INSTEAD OF JUST
HOGGING ALL THE MONEY -- AND
I WILL GIVE YOU AN EGG A REAL
LIFE EXAMPLE IF YOU IF YOU WANT
-- WHY THE AFFORDABLE HOUSING
AGENCIES ARE IN THE GOVERNOR'S
OFFICE AND IN OUR OFFICE AND
WHEN I WAS HERE AND GOVERNOR
SCHWARZENEGGER WAS THE GOVERNOR
HE WOULD NOT HAVE PUT AS MUCH OF
THE BOND CAP TOWARD AFFORDABLE
HOUSING HE WOULD HAVE USED THE
BOND CAP FOR JAILS FOR STADIUMS
-- FOUR DESALVO AND AFFORDABLE
HOUSING WOULD NOT HAVE GOTTEN
ITS FAIR SHARE AND SO HAVING
THIS CHECK AND BALANCE AGAIN
IS WHY I THINK THE LEGISLATURE
HAS SET UP THESE PROGRAMS
TO MAKE SURE THAT -- THAT WE
ARE AS FLEXIBLE AS WE CAN BE
A COUPLE OF OTHER AVENUES
WE THOUGHT ABOUT THAT WE COULD
DO MORE OUTREACH IS THE WILDLIFE
ACCOUNT HOLDERS ARE THAT IS A
LOCAL AGENCY INVESTMENT FUND --
WE INVEST FOR TWENTY TWO LOCAL
GOVERNMENT UNITS AND THIS IS SO
LIKE THE CITY OF IRVINE DOESN'T
HAVE TO HAVE A WHOLE INVESTMENT
STAFF AND THEY COULD BETTER
LEVERAGE BY PULLING THE MONEY
TOGETHER WITH US OUR CURRENT
ACCOUNT BALANCE IS ABOUT TWO
HUNDRED AND NINE BILLION DOLLARS
AND SO BY A KANEMI UPSCALE
AND -- BECAUSE WE ARE SO BIG
CALIFORNIA AS WELL AS A LOCAL
AGENCIES WE ARE ABLE TO -- TO
GET BETTER RATES AND WE CAN USE
OUR LEAF ACCOUNT HOLDERS ALSO
FOR MORE OUTREACH UP FOR THESE
UPCOMING PROGRAMS AND THEN CAL
SAVERS -- I CHEER CAL SAVERS
WHICH IS A RETIREMENT SAVINGS
PROGRAM WE ARE RUNNING A BILL TO
EXPAND THE REQUIREMENT FOR
ANY UP EMPLOYER WHO HAS ONE
EMPLOYEE TO BE ABLE TO ACCESS
AN OPEN THESE CAL SAVERS ACCOUNT
SO WE WILL HAVE A GOOD SENSE
OF WHO THESE SMALL SMALL ONE
PERSON -- -- COMPANIES ARE
OUT THERE THAT ARE NOT ABLE
TO OFFER RETIREMENT SAVINGS
BUT WILL HOPEFULLY BE ABLE
TO ACCESS SO THAT'S ANOTHER
AVENUE FOR US TO BE ABLE TO
-- TO DO MORE OUTREACH AND
THEN FOR -- -- AS A MEMBER
CHOI YOU KNOW THE RENTS ART
PROGRAMS DO ENABLE COMPANIES TO
APPLY FOR WORKING CAPITAL AS
WELL AS A DAY TO DAY OPERATIONS
BUT A LOT OF THEM DON'T KNOW
ABOUT IT AND THAT'S BECAUSE
SOME OF THE LENDERS THAT WE WORK
WITH THE CD FI'S WHICH WE LOVE
WE WORK WITH THE S. B. DC IS
-- WHICH IS FREE IT IS FUNDED
BY THE U. S. SMALL BUSINESS
ADMINISTRATION AS WELL AS THE
STATE AND THIS IS FREE RESOURCES
BUT YOU KNOW OUR COMMUNITIES
WERE ASIAN RIGHT WE HAVE MONTH
LAOTIAN THAI CAMBODIAN KOREAN
FILIPINO JAPANESE CHINESE I MEAN
THAT'S EIGHT DIFFERENT ETHNIC
GROUPS JUST IN THE API AND NOT
ALL OF THEM KNOW HOW TO ACCESS
OR TRUST OF THESE PROVIDERS
SO HOPEFULLY WITH THE TECHNICAL
ASSISTANCE MONEY THAT'S COMING
FROM THE FEDS WE CAN DO A BETTER
JOB IN OUT REACHING TO THESE
COMMUNITIES THAT YOU KNOW WEEK
SERVICE -- -- THAT ARE NOT
GETTING ACCESS TO -- TO THESE
PROGRAMS BECAUSE THEY JUST
DON'T HAVE LANGUAGE INTERPRETERS
IT'S NOT IN LANGUAGE THEY
DON'T HAVE PEOPLE THAT ARE
WORKING THERE THAT SPEAK THE
LANGUAGE AND DOING THE OUTREACH
SO SCOTT MAYBE YOU CAN TALK
ABOUT THE TECHNICAL ASSISTANCE
YEAH I THINK THE TREASURE
AND SO YEAH I I THINK MUCH
OF THE VEIN OF THAT PANEL
HAD TO DO WITH CONFUSION AND
CONFUSION IN THE SMALL BUSINESS
COMMUNITY ON TWO PARTS ONE
THE NOTION THAT THERE NEEDS
TO BE A CENTRALIZED PLACE TO
GO AND THE OTHER HAVING TO DO
WITH ITS SECURITY PRODUCTS THAT
IS HARD TO NAVIGATE AND SELL
SPEAK TO BOTH I THINK YOU KNOW
THE COMMON PLACE TO GO THE THERE
THE STATE REPRESENTS SMALL
BUSINESSES FOR CREDIT PROGRAMS
THROUGH IRAQ AND THROUGH CITY
CFA AND WE WORK TOGETHER
ON THOSE PROGRAMS WE HAVE COMMON
LENDERS IN ORLAND PARTICIPATING
LENDER NETWORK WE WORK THROUGH
S. B. C.'S TOGETHER I THINK
IT'S PRETTY WELL UNDERSTOOD
THROUGHOUT THE NETWORK HAVING A
CENTRALIZED LOCATION IS ON
ONE DAY IN A WAY TO APPROACH
JUST MAKING IT SIMPLE FOR
SOMEBODY TO GO TO KNOW WHERE
TO GO TO THE OTHER PART IS
ACTUALLY NEEDING THE MORE THEY
ARE RIGHT SO THAT WAS THE OTHER
DAY AND THEN YOU HAVE TO MEET
THEM WHERE THEY ARE AND WE
DO BOTH RIGHT SO WE DO BOTH
WITH ALL THE PROGRAMS WE WORK
THROUGH OVER A HUNDRED TWENTY
LENDERS THROUGHOUT THIS THAT
COVER THE ENTIRE STATE WE WORK
WITH THIRTY EIGHT SIGNIFIES
THAT COVER THE ENTIRE STATE WE
CONTRACT WITH SEVEN FINANCIAL
DEVELOPMENT COURTS THAT HELP
AND ASSIST SMALL BUSINESSES
NAVIGATE THE PROCESS NEXT TIME
-- STATE AND SO WE DO BOTH BOTH
SOMEWHAT CENTRALIZED IN HOW WE
PROVIDE THE PRODUCTS AND -- VERY
MUCH MEETING THE CUSTOMER BASE
AND SMALL BUSINESS COMMUNITY
WHERE THEY ARE THROUGH OUR
PARTNERSHIPS THERE ARE NETWORKS
AND THROUGH OUR COMMUNITIES I
I KNOW CAROLINE UP QUITE WELL
I'M SPEAKING AT HER A WEAPON ARE
THE COUPLE WEEKS I'VE SPOKEN AT
HER WEAPON ARE A FEW MONTHS AGO
AND SHE WAS BEFORE THAT SO WE
WE HAVE A STRONG RELATIONSHIP
WITH CAMEO AND SMALL BUSINESS
MAJORITY WITH ALL OF THE
CHAMBERS OF COMMERCE AND UP AND
BUSINESS ASSOCIATIONS THROUGHOUT
THE STATE WE WILL COMMUNICATE
WITH THEM JOINTLY WITH US
TREASURE'S OFFICE TO MAKE SURE
THEY ARE INFORMED AND THEY'RE
REACHING THEIR MEMBERSHIP AS A
TRUSTED ENTITY OUT IN THE FIELD
WE DON'T HAVE THE RESOURCES TO
HAVE SOMEBODY STATION EVERYWHERE
ON THE FIELD AND ALSO THE SMALL
BUSINESS -- ADVOCATE IS THE
GRANTING AGENCY AND THEY'RE ALSO
THE SUPPORT FOR THE T. EIGHTY
IN THE STATE AND SO I THINK
WE ARE QUITE CENTRALIZED ON ONE
END AND WE ALSO NEED TO BUSINESS
COMMUNITY WHERE THEY NEED TO
BE AND WHERE THEY NEED TO TO
RECEIVE ASSISTANCE OUT IN THE
FIELD THE SECOND PORTION OF
THE CONFUSION CONRAD HAD TO
DO WITH THE NUMBER OF PRODUCTS
AND WHAT'S OUT OF THE BUSINESS
NEEDS ARE AND UNFORTUNATELY
THE FINANCIAL WORLD IS QUITE
COMPLEX AND EVEN THE FINANCIAL
PICTURE FOR A VERY SMALL
BUSINESS CAN BE EXCEPTIONALLY
COMPLEX A SMALL BUSINESS AND
I'VE BEEN THERE MANY TIMES UP
PLETHORA OF PRODUCTS THAT THEY
HAVE TO NAVIGATE EVERYTHING
FROM COMMON AND PREFERRED EQUITY
TO VENDOR FINANCING EQUIPMENT
FINANCING TO MERCHANT CASH
ADVANCES REVENUE BASED FINANCING
FACTORING REAL ESTATE LOANS
AND MORTGAGES TO -- MEZZANINE
LOANS AND VENTURE DEBT TO CREDIT
CARD LOANS AND REVOLVERS AND
WORKED WORKING CAPITAL LINES
ENSURE YOU PAUSE I COULD GO ON
YOU KNOW FOR FOR A LONG TIME
ON THIS LIST AND SO THEY
NEED HELP YOU NEED TO FINISH
DEVELOPMENT CORPORATIONS THEY
NEED TO BE PROVIDERS THEY NEED
THEIR LENDING RELATIONSHIPS
OUT IN THE FIELD TO HELP THEM
NAVIGATE AND GUIDE THEM TOWARDS
WHAT'S THE MOST APPROPRIATE
PRODUCT FOR THEM AND ALTHOUGH
GENERALLY DEFINED FROM US
SOME COMBINATION OF MY BAG
RECEIVE THE CFA AND SO WE NEED
TO DO A BETTER JOB OF MAKING
SURE WE CONTINUE TO KEEP THAT
INFORMATION FLOW -- VERY FLUID
BUT I I THINK THAT'S SOMETHING
THAT YEAH WE WE INTEND TO DO
WHEN HOPE IT HAPPENS -- WE
IMMEDIATELY AND I THINK APRIL
OR MAY OF TWENTY TWENTY PUT UP
A LANGUAGE TRANSLATOR ON THE
WEBSITES OR APPLICATIONS AND
INFORMATION ITEMS WERE AVAILABLE
IN OVER A HUNDRED LANGUAGES AND
EVERY STEP TO DO THAT WE HAVE TO
LEVERAGE TECHNOLOGY AND WE HAVE
TO WONDER JEWELERS RELATIONSHIPS
AND PEOPLE IN THE FIELD
THANK YOU -- I THINK WHAT
I APPRECIATE THANK YOU FOR THAT
-- RESPONSE WHAT I WHAT I
APPRECIATE ABOUT -- MISTER
CORNELIUS WITH THEM DIRECTOR
FOR THE CENTER FOR REGIONAL
ECONOMIC DIVISION AT THE MILKEN
INSTITUTE AND I THINK SOMETHING
THAT WE ALL KIND OF STRIVE TO
UNDERSTAND IS THE NATURE OF
IMPLICIT BIAS I THINK THAT'S
ALSO PART OF THE CONVERSATION
THAT TOOK PLACE IN THE PANEL
MEMBER TO AND WHEN WE
TRIED TO MOVE ISSUES AROUND
BUDGET RELATED TO THE CHALLENGE
OF PROP TWO OH NINE AGAIN I
I BRING IT UP BECAUSE WE ALL
RECOGNIZE IT WE ALL HAVE THESE
MEASUREMENTS OF SUCCESS THAT
WE WANT TO ATTAIN TO BE ABLE
TO SUPPORT WOMEN WOMEN OF COLOR
-- MINORITY OWNED BUSINESSES
AND THE THE GATHERING OF
THAT INFORMATION IS OFTEN
ONLY DONE ON ME -- VOLUNTEER
BASIS SINCE WE'RE NOT ABLE TO
ACTUALLY LEGALLY REQUIRE IT
WHICH THEN GIVES US I THINK A
A FALSE SENSE OF SECURITY AS TO
WHAT IT IS THAT WE ARE TRYING
TO REACH OUT TO WE COULD DO
ALL THE OUTRAGE THAT WE WANT
AND ULTIMATELY THERE'S ONLY
SO MUCH RESPONSE THAT WE CAN
GET SO I'M JUST AGAIN I JUST
I WANT TO GET OUT THE POINT OF
HOW DO WE ACHIEVE THESE GOALS
THAT WE ALL WANT TO SEE ACROSS
THE STATE WELL WE HAVE THESE
VERY REAL CHALLENGES IN PLACE
WHILE WE ALSO KNOW THAT EVEN
ATTAINING A LOAN FOR A SMALL
BUSINESS IS ALSO VERY DIFFICULT
-- ANY ADVICE SUGGESTIONS ON
HOW WE MAY POSSIBLY BE ABLE TO
DO THAT AS WE TRY TO REACH OUT
TO COMMUNITIES AND SO WE'RE
FIVE HUNDRED MILLION A POT FOR
TECHNICAL ASSISTANCE TO REACH
OUT TO YOU KNOW THE EIGHT API
COMMUNITIES THAT YOU MENTIONED
AS WELL AS EVERYONE ELSE ACROSS
THE STATE WHILE AT THE SAME
TIME BEING CHALLENGE UNLIMITED
AS TO WHAT THAT ACTUALLY LOOKS
LIKE ON THE OUTCOME YEAH NO
I MEAN THAT THAT HAS BEEN A
CHALLENGE AND THAT'S WHY WE'VE
BEEN TRYING TO PARTNER WITH
ALL THESE ORGANIZATIONS BECAUSE
THEY HAVE THEIR OWN OUTREACH
NETWORKS -- BUT LIKE EVEN IF
YOU ASK SOME OF YOUR SMALL
BUSINESS OWNERS YOU KNOW DO
THEY BELONG TO THE CHAMBER SOME
SAY YES SOME SAY NO WHO ELSE
DO THEY BELONG TO SUMMER JUST
BUSY THEY JUST DON'T HAVE TIME
BECAUSE THEY'RE JUST TRYING TO
KEEP THEIR DOORS OPEN RIGHT SO
HOW DO WE REACH OUT TO THEM IS
IT THROUGH LOCAL NEWSPAPERS OR
RADIO THE -- STATIONS YOU KNOW
MAYBE WE NEED TO DO A LITTLE
BIT MORE OUTREACH BUT THAT ALSO
COMES FROM MONEY RIGHT BECAUSE
WE HAVE TO PUT MONEY INTO
ADVERTISING PUT MONEY INTO YOU
KNOW IN LANGUAGE INTERPRETERS
PUT LANGUAGE INTO TRANSLATION
OF ALL THESE MATERIALS SO WE'RE
HOPING WITH THIS NEW MONEY
THAT WE ARE GOING TO DO MORE
OF THAT BECAUSE WE TRY TO DO
IT IN OUR OFFICES TO THE BEST
OF OUR ABILITY BUT IT REALLY
DEPENDS ON YOU KNOW WHO PARTNERS
WITH US AND WHO THEY REACH OUT
TO AND WHETHER YOU KNOW YOUR
CONSTITUENTS ARE GETTING YOUR
NEWSLETTER SO THAT THEY KNOW
THAT YOU'RE HAVING A WEAPON ARE
SOME MADE SOME MAY NOT RIGHT
THE SAVVIER ONES USUALLY DO BUT
THE ONES THAT NEED THE MOST HELP
DON'T USUALLY REACH OUT UNTIL
IT'S TOO LATE AND THEN THEY'RE
CALLING OUR OFFICE SAYING HEY
I CAN'T PAY MY RENT AND THEM
LIKE THE GENTLEMAN SAID WELL
THAT'S A LITTLE BIT TOO LATE TO
GET A LOAN AFTER YOU SHUT DOWN
ALL YOUR BEHIND YOUR RENT YOU
KNOW EIGHT MONTHS SO WE NEED TO
JUST DO A BETTER JOB IN TERMS
OF OUT REGION AND PROMOTIONS AND
HOPEFULLY WITH THIS FIVE HUNDRED
MILLION IN TECHNICAL ASSISTANCE
WE CAN ACQUIT THE SPD SEES
IT ALL THE CAMEOS OF THE CDF
EYES GET MORE OF THEM ENGAGED
AND SIGNED UP HAS PARTICIPATING
LENDERS SO THAT THEY CAN REACH
OUT TO THEIR COMMUNITIES I KNOW
I'D LIKE TO BE SURE TO CLARIFY
THAT THAT FIVE HUNDRED MILLION
IS FOR THE ENTIRE NATION THE
NEW YORKER HAS NOT ALLOCATED
OKAY CALIFORNIA SO WE'LL GET
ABOUT TEN OR TWELVE PERCENT
BASED ON OUR POPULATION YEAH
AND AND SO I THINK THE TREASURES
EXACTLY RIGHT YOU KNOW WE'RE
WORKING TO CAN A HAND WITH HER
AND HER TEAM TO DO ALL IN WITH
THE THINGS THAT SHE EXPRESSED
WHEN I CAME ON BOARD I BEG I
QUICKLY RECOGNIZE THAT WE DON'T
HAVE A MARKETING LINE ITEM RIGHT
WE HAVE NO MARKETING BUDGET
AND SO WE HAVE TO TREAT IF WE
HAVE TO BE SCRAPPY WE HAVE TO
LEVERAGE RELATIONSHIPS WE HAVE
TO USE THE TREASURES MICROPHONE
THE GOVERNOR'S MEGAPHONE TO
GET THE WORD OUT THERE AND
WE WE DO THAT WITH OUR SMALL
TEAMS IN THEIR LIMITED BUDGETS
-- BUT HAVING SAID THAT S.
S. B. C. THAT WILL PROVIDE
SOME DEGREE OF ADMIN OVERHEAD
COVERAGE SOME OF WHICH CAN BE
USED FOR OUR REGION MARKING
PURPOSES SO THAT WILL BRING SOME
ADDITIONAL CAPABILITIES TO US
BUT HAVING SAID THAT YOU KNOW
WE WE DEMONSTRATE THE ABILITY TO
MAKE THAT HAPPEN AS I MENTIONED
BEFORE WHEN WE WATCH THE
CARBONITE TEAM -- LOAN PROGRAM
APRIL TWENTY TWENTY OUR RESULTS
TO DATE OF THE NEARLY TWO
THOUSAND OF BUSINESSES THAT HAVE
RECEIVED THAT LOAN GUARANTEE
EIGHTY SIX PERCENT OF THEM ARE
FEMALE OWNED MINORITY OWNED
OR ARE LOCATED AND HELLO MY
HE CONTRACTS AND AND THEREFORE
WE KNOW IT'S DOABLE WELL I WOULD
NEED TO DO MORE OF IT AND WITH
GREATER RESOURCES WE HOPE YOU
HAVE A LOT MORE EFFECTIVE AT
AND I JUST WANT TO POINT OUT --
FOR CP CFA THE CAL CAP PROGRAM
-- WE WORK PRIMARILY WITH
THE LENDER AND THE LENDING
NETWORK -- THERE IS NOT
-- A LOT OF BORROWER ENGAGEMENT
BUT GET BORROWS FIND THEIR
WAY TO IT SINCE TWENTY TWENTY
-- OUR STAFF HAS WORKED ON
WITH APPROXIMATELY THREE
HUNDRED INQUIRIES FROM SMALL
BUSINESSES LOOKING FOR RESOURCES
IN RESPONSE TO THE CULVERT
NINETEEN PANDEMIC -- NCPC
FAA -- CAL CAP WE WORK WITH
DEDICATED FINANCIAL INSTITUTIONS
LOCATED IN REGIONS THROUGHOUT
THE STATE HELPING TO SERVE
THOSE BUSINESSES THAT HAVE
HISTORICALLY BEEN UNDERSERVED
AND UNDER CAPITALIZED BY
WORKING WITH MISSION BASED
COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTION CDFI WE
HAVE MADE CONCERTED EFFORTS TO
INCREASE ACCESS TO CAPITAL FOR
WOMEN MINORITIES THE DISABLED
AND VETERANS DURING S. S. B.
C. I. ONE POINT -- WE ASSISTED
TEN THOUSAND ONE HUNDRED AND
NINETY NINE SMALL BUSINESSES
WITH CAL CAP SUPPORT IT LOANS
EIGHT THOUSAND AND FIFTY NINE
OF THOSE WERE FOR WOMEN OWNED
BUSINESSES THREE THOUSAND
SIX HUNDRED AND FIFTY THREE
MINORITY OWNERS AND ONE
HUNDRED AND TWENTY VETERANS
THERE WERE ONE HUNDRED AND
EIGHTY FOR COLLATERAL SUPPORT
FINANCINGS DURING S. S. B.
C. I. ONE POINT OH WITH FORTY
THREE GOING TO WOMEN THIRTY
SEVEN TWO MINORITIES AT THREE
TO VETERAN CAL CAP ANTICIPATE
NOT ONLY CONTINUING THIS TREND
BUT INCREASING THE NUMBER OF
LOANS AND ROLLED WITH THE FOCUS
ON UNDERSERVED COMMUNITIES WE
WILL DO THIS BY CONTINUING WITH
ROBUST MARKETING AND OUTREACH
EFFORTS -- WE WILL LEVERAGE
THE SYNERGY WITH OTHER S.
T. O. PROGRAMS LIKE THE CHARGER
DESCRIBED EARLIER WE WILL
ARM CONTINUE OUR OUTREACH
PARTNERSHIPS WITH OTHER STATE
AGENCIES OUR LEGISLATIVE
MEMBERS LOCAL GOVERNMENTS
AND -- SEVERAL S. B. D. FEES
-- AND --
FINANCIAL ECONOMIC DEVELOPMENT
ORGANIZATIONS AT AND ALSO I'VE
BEEN REACHING OUT TO PASTORS AS
WELL AS CONSUL GENERALS BECAUSE
THEY MAY HAVE THE TRUSTED YOUR
FOR THE COMMUNITY SO YOU KNOW
WE'RE TRYING TO REACH OUT TO
AS MANY AS WE CAN BUT WE ALSO
YOU KNOW NEED THEM TO PARTNER
WITH US AND PROVIDE SOMETIMES
THAT LANGUAGE ACCESS THAT
SIMULTANEOUS TRANSLATION SO
WE DO THOSE TYPE OF WEAPONIZED
AS WELL DR TRY
YEAH GEORGE AMMAR I WONDER WHAT
THE -- YOU OR ANY OTHER
AGENCY MAY MAINTAIN
ALL THE LOCAL ETHNIC A CHAMBER
OF COMMERCE TO LISTER I HOPE
THE THE CALIFORNIA CHAMBER
OF COMMERCE -- MAY HAVE
THAT THE BUT -- I DON'T KNOW
WHAT THEY'RE ASSOCIATION
MEMBERSHIP FEE IS -- SO
DEPEND UPON THE FINANCIAL
STATUS OF -- SMALLER CHAMBER
OF COMMERCE AND MAY NOT
BELONG TO CALIFORNIA CHAMBER
SO ETHNIC CHAMBERS WILL BE
DUBBED TO ME BEST SOURCE
TO REACH OUT TO EDUCATE THEM
WAS AVAILABLE WORDS SO THAT
THEY CAN HAVE THEIR OWN SEMINAR
AND -- TELL THEM YOU KNOW WHAT
THE RESOURCES ARE AVAILABLE --
THANK YOU YES I'M WE'RE GONNA
GIVE YOU A LIST OF THE CHAIR
ASK FOR A LIST I KNOW THE THREE
HUNDRED WEBINARS WE'VE DONE WE
WILL GIVE YOU THE LIST OF ALL OF
OUR PARTNER AGENCIES AND MANY
OF THEM ARE I THINK CHAMBERS
SO ARE THERE ANY OTHER QUESTIONS
FROM COMMITTEE MEMBERS AT THIS
TIME IF NOT WE'RE GOING TO TRY
TO PUBLIC COMMENT WHICH WANT
TO SAY THANK YOU SO MUCH TO ALL
THREE OF YOU AFTER BEING HERE
TODAY AND FOR TAKING YOUR TIME
TO TO SHARE WITH US OF THE
WORK THE ALL ARE DOING AND LOOK
FORWARD TO CONTINUING OUR WORK
TOGETHER SO WE CAN TURN
TO EXCUSE ME PUBLIC COMMENT
I KNOW THAT WE HAVE FOLKS
IN THE ROOM -- WHO MAY WISH
TO PROVIDE COMMENT AND THEN
WE'LL TURN IT OVER TO OUR PHONE
LINES LET ME QUICKLY BRING THIS
UP THE NUMBER TO CALL IT IS
EIGHT SEVEN SEVEN SIX NINE TWO
EIGHT NINE FIVE SEVEN OUR ACCESS
CODE IS ONE THREE ONE FIVE FOUR
THREE SEVEN AND
LET ME TURN IT OVER TO
THE FIRST PERSON COULD
APPROACH YES REPUBLICAN REP
YOU COULDN'T GOOD AFTERNOON
THANK YOU FOR -- THIS JOINT
-- COMMITTEE HEARING ON THESE
VERY IMPORTANT FUNDS COMING TO
CALIFORNIA I WANT TO THANK THE
LEADERSHIP OF SCOTT WU DIRECTOR
AT THAT THE I. BANKING OF
COURSE TO THE STATE TREASURER'S
OFFICE I MEAN A LOT TO BENSON
AND I REPRESENT THE FINANCIAL
DEVELOPMENT CORPORATIONS WHO
ARE THE SEVEN NONPROFITS THAT
WORK WITH THE I. BANK WE WANT
TO SAY THAT WILL IT WE ARE
READY WE WORK IN THE COMMUNITY
OR OUT THERE NETWORKING FINDING
THE BUSINESSES MAKING SURE THAT
THINGS ARE HAPPENING FOR THE
SMALL BUSINESS COMMUNITY IN
FINDING AS MANY OPPORTUNITIES
AS POSSIBLE TO MAKE SURE THAT
WE'RE REACHING OUT TO THE
COMMUNITY YOU DON'T HAVE A
REPORT IN FRONT OF YOU THAT MANY
OF YOU HAVE BEEN -- DISCUSSING
TODAY AS PUT TOGETHER BY THE
CAL CAP PROGRAM BUT I KNOW
THAT WE ARE VERY ANXIOUS IF
YOU NEEDED THAT INFORMATION WE
WILL PROVIDE THAT TO YOU BUT
WE ARE VERY EXCITED TO WORK IN
COLLABORATION WITH THE STATE
TREASURER'S OFFICE AND CERTAINLY
UNDER THE LEADERSHIP OF COBIZ
AND THE I THINK TO MAKE SURE
THAT YOU'RE YOUR COMMUNITIES
ARE REACHED COMMUNITIES OF COLOR
AND MINORITY WOMEN BUSINESS
ENTERPRISES AT VETERANS ARM
ALL OF THOSE GREAT BUSINESSES
THAT WE NEED TO MAKE SURE
SUCCEED TO CREATE CALIFORNIAN
BUILD IT BACK THANK YOU
IF WE COULD JUST HAVE A JUST
A REMINDER FOR FOLKS WHO ARE
ON THE LINE RIGHT YOU CAN
CALL AND YOU WILL BE PLACE
IN THE QUEUE AND YOU'LL
BE TWELVE TWENTY IN JUST A
MOMENT WE HAVE A COUPLE MORE
FOLKS IN THE ROOM AND HAVE ONE
MINUTE PLEASE GO AHEAD YEAH GOOD
AFTERNOON I'M CLAUDIA VEGAN HI
REPRESENT THE CALIFORNIA WOMEN'S
BUSINESS CENTER NETWORK OF
SIXTEEN WOMEN'S BUSINESS CENTERS
THROUGHOUT THE STATE FROM FAR
NORTH SISKIYOU COUNTY DOWN INTO
SAN DIEGO AND IMPERIAL COUNTIES
SO THANK YOU CHAIRMAN CERVANTES
AND CURIO FOR THIS OPPORTUNITY
TO CHANGE THE PARADIGM OF
LANDING THAT'S LEFT OUT SO MANY
TALENTED ENTREPRENEURS IN OUR
COMMUNITY I'D LIKE TO
CONFIRM THE CRITICAL OPPORTUNITY
OFFERED BY THIS PENDING S. S. B.
C. I. CAPITAL FOR THE ALMOST TWO
MILLION WOMEN BUSINESS OWNERS
IN CALIFORNIA MOST OF WHOM ARE
STILL STRUGGLING TO RECOVER
FROM THE PAST TWO YEARS OF THE
PANDEMIC IMPACTS ON OUR ECONOMY
AND I KNOW YOU BOTH KNOW ALL
OF YOU HERE KNOW THAT WOMEN
HAVE BEEN DISPROPORTIONATELY
AND AFFECTED BY THE PANDEMIC
THEY'VE HAD TO LEAVE THE WORK
FORCE AND DRUGS AND THEY'RE
STILL STRUGGLING TO RE ENTER
DUE TO LACK OF CHILD CARE AND
GENERAL ECONOMIC UNCERTAINTY
DURING THIS TIME THE WOMEN'S
BUSINESS CENTERS HAVE STEPPED
UP AND MORE THAN DOUBLED THEIR
SERVICES TO WOMEN ENTREPRENEURS
THE VAST MAJORITY OF WHOM
WERE WOMEN OF COLOR AND LOWER
INCOME WOMEN'S BUSINESS CENTERS
LEVERAGED OVER A HUNDRED AND
SIX MILLION DOLLARS IN LOANS AND
GRANTS AND PROVIDED INTENSIVE
TECHNICAL ASSISTANCE TO ENABLE
WOMEN TO PIVOT THEIR BUSINESSES
SELL ONLINE AND SUSTAIN
OPERATIONS S. S. B. C.
I. FUNDS ARE TARGETED
SPECIFICALLY TO THE SEGMENT
OF WOMEN OWNED BUSINESSES
SERVE BUYERS STATES W. B. C.'S
AND FOR THIS REASON WE'RE ASKING
YOU TO ENSURE THAT THE CAPITAL
BE STRUCTURED ALLOCATED AND
MANAGED SO THAT WOMEN WILL BE
ABLE TO ACCESS AND BENEFIT FROM
THIS HISTORICAL OPPORTUNITY
GOAL SET WITH THE I. BANK IN
STATE TREASURER'S OFFICE NEED
TO BE CRYSTAL CLEAR AND OUTCOME
DATA ANALYZED ON A QUARTERLY
BASIS UNDERWRITING GUIDELINES
NEED TO BE SCRUTINIZED AS
MR CORNELIUS SAID EARLIER
I'M MORE RISK NEEDS TO BE
FACTORED IN SINCE S. S. B. C.
I WILL SUPPORT EXTENSIVE LOAN
GUARANTEES FOR EXAMPLE RESEARCH
SHOWS THAT WOMEN AND MINORITY
OWNED BUSINESSES ARE TURNED DOWN
FOR CREDIT BECAUSE OF A LACK OF
PERSONAL GUARANTEES SO TAKING
MORE RISK WILL RESULT IN GREATER
ACCESS TO CAPITAL FOR WOMEN
AND MINORITY OWNED BUSINESSES
WHICH IN TURN WILL LEAD TO MORE
HIGH GROWTH BUSINESSES AND JOB
CREATION IN LMI COMMUNITIES
FURTHERMORE THE KEY TO CREDIT
ACCESS IS CRITICAL TECHNICAL
ASSISTANCE THAT'S COUNSELING
PREPARATION OF FINANCIALS AND
CASH FLOW PROJECTIONS AND POST
LAUNCH SUPPORT TO AND THIS
T. A. AS AS CAROLINE I MENTIONED
EARLIER IT TAKES TIME AND
IT REQUIRES ADEQUATE FUNDING
IF WE'RE GOING TO ACHIEVE A
PIPELINE OF LOAN READY WOMEN
APPLICANTS SO WE UNDERSTAND THAT
CREDIT TA FUNDING WILL BE PART
OF THE S. S. B. C. I. PROGRAM
AND IT WILL BE ADMINISTERED TO
THE GOVERNOR'S OFFICE OF SMALL
BUSINESS ADVOCATE WE STRONGLY
SUPPORT THIS DIRECTION BECAUSE
THE SMALL BUSINESS ADVOCATE AND
ITS LEADERSHIP WITH CAROLINE
GRAY HAS DEMONSTRATED CAPABILITY
AND COMMITMENT TO REACHING
UNDERSERVED POPULATIONS AND
BUSINESS OWNERS MS GRAY IS
OPEN TO CREATIVE SOLUTIONS
JUST COLLABORATIVE SHE HAS THE
TRUST OF OUR COMMUNITY IT'LL
BE CRITICAL TO MAKE SURE HER
OFFICE HAS THE SUPPORT AND
INFRASTRUCTURE TO IMPLEMENT
A SUCCESSFUL AND EFFECTIVE
TECHNICAL ASSISTANCE PROGRAM
SO THANK YOU FOR YOUR ATTENTION
TO THE SIGNIFICANT SOURCE A
NEW CAPITAL DIRECTED TO OUR
WOMEN ENTREPRENEURS HAVE BEEN
HISTORICALLY UNDERSERVED AND
UNDERAPPRECIATED DUE TO THEIR
SMALL SIZE S. S. B.
C. I COULD BE A GAME CHANGER
ENABLING WOMEN TO OBTAIN THE
GROWTH CAPITAL THEY NEED TO
CREATE JOBS AND REVENUES AND
STRONGER LOCAL ECONOMIES THANK
YOU THANK YOU SEE NO ONE
ELSE PLEASE APPROACH WE HAVE
ANOTHER PUBLIC COMMENT THANK YOU
LORD THIS JUST A LITTLE BIT GOOD
AFTERNOON CHAIRS -- LORI KAMMER
WITH THE NATIONAL ASSOCIATION
OF WOMEN BUSINESS OWNERS ARE
ALSO SMALL BUSINESS CALIFORNIA
AND FOR THOSE OF OF YOU THE
WHO I'VE SEEN BEFORE I DO A
LOT OF THE PUBLIC AFFAIRS FOR
THE SMALL BUSINESS DEVELOPMENT
CENTERS -- WE PUT TOGETHER A
DISTRICT PROFILES TO SHOW ALL
THE GREAT WORK THEY DO WITH
THEIR TECHNICAL ASSISTANCE --
IN EVERY DISTRICT IN CALIFORNIA
-- WE THANK YOU FOR PUTTING THIS
-- PANEL TOGETHER -- TODAY WEEK
I COMPLETELY AGREE WITH THAT
-- THE RISK TOLERANCE BEING TOO
LOW -- THAT BUSINESS LENDERS
NEED TO FIND -- AND OPENED THE
TO FIND AN OPEN THEIR CREDIT
BOXES TO BE ABLE TO REACH OUT TO
MORE PEOPLE TO MORE UNDERSERVED
COMMUNITIES ESPECIALLY WOMEN --
AS I LISTEN TO THIS CONVERSATION
IT WASN'T THAT LONG AGO THAT
WOMEN COULD NOT HAVE CREDIT
CARDS AND SO IT'S VERY DIFFICULT
NOW FOR -- YOU'LL FOR WOMEN TO
OBTAIN CREDIT WITHOUT HAVING
SOMEBODY YOU KNOW THERE TO BACK
THEM UP SO -- WE FULLY STAND
BEHIND YOUR NOVEL CALIFORNIA
SMALL BUSINESS CALIFORNIA SB
DC'S I STAND BEHIND YOU AND WHAT
YOU'RE TRYING TO DO AND GET MORE
CAPITAL INTO THE HANDS OF THE
SMALL BUSINESSES AND REPRESENTED
COMMUNITIES THANK YOU THANK
YOU SO MUCH IS THERE ANYONE
ELSE IN THE HEARING ROOM THAT
WOULD LIKE TO PROVIDE PUBLIC
COMMENT SEE NOW I KNOW THERE
IS AN OPPORTUNITY TO PROVIDE
EXTENDED COMMENTS -- IN WRITING
YOU KNOW FOR THOSE WHO WOULD
PREFER TO OFFER WRITTEN COMMENTS
WE CAN ACCEPT THOSE UP UNTIL
APRIL FIFTEENTH I THANK CAN
BE SUBMITTED TO BOTH THE SUB
BUDGET SUB FOR ASM DOT CA DOT
GOV OR JEDI AT EIGHT ASSEMBLY
DOT CA DOT GOV JEDI ADDED
SIMPLY DOT CA DOT GOV THIS IS
THE SAME INFORMATION THAT IS
AVAILABLE ON TODAY'S HEARING
WEBSITE LET ME GO AHEAD AND
TURN OVER TO CHAIR CARILLO
I DO JUST WANT TO QUICKLY --
JUST MAKE A CLOSING STATEMENT
I PERSONALLY FOUND THIS
HEARING TO BE INFORMATIVE AND
VALUABLE AS WE DO DEVELOP SOUND
ECONOMIC POLICIES THAT CREATE
JOBS SUPPORT ENTREPRENEURS
AND EXPAND EXPAND BUSINESS
OPPORTUNITIES OPPORTUNITIES
THE SO KEY RIGHT AS WE TALKED
ABOUT TODAY AND SOME OF OUR
PANELISTS MENTIONED -- FOR ALL
CALIFORNIANS AND SO I THINK FALL
TO OUR OUR CHAIR AGUIAR-CURRY
-- FORD ALLOWING US TO DO THIS
WORK TOGETHER AND -- COMMITTED
TO MAKING MORE OPPORTUNITIES
AVAILABLE FOR ALL CALIFORNIANS
THANK YOU -- TO MY CO CHAIR
ASSEMBLY WOMAN CERVANTES FOR
-- YOU KNOW CONVENING THIS
VERY IMPORTANT HEARING BOTH
ON THE POLICY PERSPECTIVE WITH
A SMALL BUSINESSES AND ECONOMIC
DEVELOPMENT HERE IN THE STATE OF
CALIFORNIA AS WELL AS YOU KNOW
THE BUDGET PROCESS AND ENSURING
THAT AGENCIES AND DEPARTMENTS
ACROSS -- ACROSS CALIFORNIA
REALLY IMPACT -- PEOPLE WORKING
PEOPLE AND FAMILIES AND WOMEN
AND ENTREPRENEURS THAT REALLY
SHOULD BE GETTING THE ATTENTION
AND AID THAT WE ALL HOPE AND
STRIVE THEY WERE ABLE TO PUT OUR
OUR BUDGET DOLLARS FORCED TO IN
AND EATING THAT ASSISTANCE AND
I'M SO GLAD THAT IT WAS BROUGHT
TO OUR ATTENTION DURING PUBLIC
COMMENT HERE IN THE ROOM ABOUT
WOMEN NOT BEING ABLE TO OBTAIN
CREDIT IT WOULD ACTUALLY BE
FIFTY YEARS I BELIEVE NEXT YEAR
AND TWENTY TWENTY FOUR WHERE
THAT ACTUALLY BECAME LIKE A YOU
KNOW A REALITY SO IN NEXT YEAR
WE WILL BE CELEBRATING HONORING
FIFTY YEARS THAT WOMEN WERE ABLE
TO FINALLY OBTAIN A CREDIT
CARD WITHOUT A HUSBAND OR A
SPOUSE OR PARTNER SIGNING ON
THEIR BEHALF SO I THINK THE FACT
THAT I AM A WOMAN IS SURE BUT
IT'S A FOR OUR JEDI COMMITTEE
CHAIR IS A WOMAN -- MISS PETRI
NORRIS WAS A SELECT THE
SELECT COMMITTEE ON ON SMALL
BUSINESSES IS THE CHAIR OF THAT
COMMITTEE AS WELL AND OUR STATE
TREASURER FIONA MOM A WOMAN
I THINK HEY YOU KNOW LET'S
LET'S CELEBRATE LET'S CELEBRATE
THOSE THE WHIMS -- AND
TO AND TO OUR MALE COLLEAGUES
THAT SUPPORT YOU KNOW THE WORK
THAT WE DO AS WELL THANK YOU --
THAT'S RIGHT THAT'S RIGHT AND
SO AND OUR BUDGET CONSULTANT
ALSO WOMEN'S BUT CHECK OUR JEDI
CONSULTANT ALSO WOMEN REPUBLICAN
CONSULTANT ALSO WOMAN HEY YOU
KNOW LIKE WE ARE MAKING MAKING
STRIDES -- SO I THINK IT'S JUST
IMPORTANT FOR US TO RECOGNIZE
THAT THINGS HAVE CHANGED BUT WE
STILL HAVE A LONG WAYS TO GO --
AND SO WE'RE DOING EXILE CLEAR
THAT BEFORE WE WRAP UP I JUST
WANNA MAKE SURE THAT WE HAVE
NO ONE ON THE LINE OPERATOR IS
THERE ANYONE WAITING TO MAKE A
PUBLIC COMMENT OVER THE PHONE
RELATED IN GERMAN IF YOU WOULD
LIKE TO MAKE PUBLIC COMMENTS
PRESS ONE THEN ZERO AT THIS TIME
WE DO HAVE LINE CHEWING UP
ONE MOMENT PLEASE WHILE WE
PROVIDE THEM THEIR LINE NUMBERS
WE WILL GO FIRST TO LINE
SEVENTY THREE GO AHEAD
GOOD AFTERNOON CHAIRED THREE
OUT AND THURMOND HAS AND MEMBERS
OF THE COMMITTEE MY NAME IS IN
GREAT HOW PUBLIC POLICY MANAGER
FOR THE CALIFORNIA ASIAN PACIFIC
CHAMBER OF COMMERCE WE SINCERELY
APPRECIATE THE BOTH OF YOU ARE
TAKING THE MATTER AND HOLDING
THAT INFORMATIONAL HEARING THE
TELEVISION CHAMBER IS CONCERNED
ABOUT THE ACCESS TO AFFORDABLE
CAPITAL FOR THE CLEAN ENERGY
JUST TRANSITION WE FEEL THE
STATE SHOULD LOOK CAREFULLY AT
THE GROWING CONCERN OF SMALL
BUSINESS OWNERS ESPECIALLY
MINORITY BUSINESS OWNERS AND
BUSINESSES AND UNDERSERVED
COMMUNITIES FOR THEIR ABILITY
TO ACCESS AFFORDABLE CAPITAL
ONE ACCOUNT INFRASTRUCTURE
INVESTMENT IN THEIR BUSINESS
HOURS YOU ARE HERE TO GOVERNMENT
MANDATE AND BENCHMARK RIGHT
JACK TRANSACTION MANY SMALL AND
MINORITY OWNED BUSINESSES ARE
ALREADY OVER LEVERAGED YOU COULD
THAT YOU CAN ON TO PROVIDE THE
PANDEMIC AND NOW ENTERING OUR
THIRD PANDEMIC HERE AND GROWING
INFLATION AFFORDABLE CAPITAL FOR
THE BUSINESS AS TO MAKE THE JUST
TRANSITION EXTREMELY DAUNTING IF
NOT IMPOSSIBLE WE ENCOURAGE THE
LEGISLATURE TO PRIORITIZE THE
MATTER AND CONSIDER WHETHER OR
NOT HE COULD STAND UP MALL
BUSINESS READ MORE COVERAGE ON
I FINANCIAL MECHANISM PROPOSED
BY THE BROOKINGS INSTITUTE
OR SOMETHING SIMILAR TO HELP
BRIDGE THE FINANCE FINANCING
GAP FOR SMALL AND MINORITY OWNED
BUSINESS AS TO BE ABLE TO AFFORD
THE COMING JEFF TRANSACTION
THANK YOU FOR YOUR TIME
WE'LL GO NEXT TO LINE
SEVENTY TWO ONE MOMENT PLEASE
YOUR LINE IS OPEN GO AHEAD
GOOD AFTERNOON ASSEMBLY
MEMBER CARRILLO CERVANTES --
I ACTUALLY MY NAME'S MICHAEL
BANNER I'M FROM LOS ANGELES
I RUN A NONPROFIT COMMUNITY
DEVELOPMENT FINANCIAL ADVISE YOU
CURRENT EVENTS OF THE LAST
THIRTY YEARS I TALKED TO
DATE THIS HEARING WAS VERY
INFORMATIVE AND --
IT PROVIDED ME AND
YOU KNOW I CONSIDER
MYSELF AND EXPERIENCE A
PRACTITIONER AND WEBER ST STE
BASIC INFORMATION ABOUT THE
PROPOSALS S. S. B. C. I.
TO POINT -- PROGRAMMING AND
THE POINT OF THIS NEARLY
ONE POINT TWO BILLION DOLLAR
ALLOCATION FROM THE DEPARTMENT
-- AS A LONGTIME LEADER IN A
COMMUNITY DEVELOP AND ENHANCE
INDUSTRY I REALLY BELIEVE THAT
GREATER TRANSPARENCY ABOUT
CALIFORNIA H. S. B. C. I. TWO
POINT OH APPLICATION WOULD
HELP TO ENGAGE THE BROADER
SCHOOLBOOK CAPITAL PROVIDERS
AND PRINT UNANSWERED MINDS THAT
ARE COMMITTED TO ENSURING THAT
CALIFORNIA SMALL BUSINESSES
RECEIVE MAXIMUM BENEFIT UNDER
THE SECOND APPLICATION --
THIS IS THE C. I. PHONES --
YOUR ARGUMENT THEY SHOULD HAVE
THAT EXPERIENCE WITH THE C.
P. C. S. A. NDR BANK CAPITAL
ACCESS PROGRAM FOR MANY YEARS
EVERY EXPERIENCE IN WORKING WITH
CITIES AND -- A NUMBER OF CFR
AT NINETEEN NINETY FIVE OUR
SMALL ORGANIZATION I MEAN SMALL
COMPARED TO SOME OF THE OTHER
BANKS AND OUR COMMITMENT
IS THAT OUR STATE THE COURT
APPOINTED MILLION DOLLARS OF
CAPITAL IN A WIDE VARIETY OF
STRUCTURES TO BORROWERS AND
WHAT PURPOSES AND I THINK THE
ONE THING THAT I TELL YOU IT'S
POSSIBLE BASED ON OUR EXPERIENCE
THAT THE POINT CAPITAL INTO
LOW INCOME COMMUNITIES OF
COLOR AND A BORROWED A CAR
AND YOU CAN DO IT BUT LET AND
MOST OF THE LENDER THAT WE
-- SERMON AT THE WRAP
UP YOUR COMMENT PLEASE
EIGHT OUTS IN THE WRITTEN
COMMENTS IN -- BUT I REALLY
APPRECIATE YOU TAKING THE
TIME TO OUR -- LET US GET SOME
INSIGHT TO WHAT'S ACTUALLY
GOING ON AND AND THE STATE
AND GET INSIDE THE BLACK BOX
THANK YOU OPERATOR THERE
ANYWHERE ELSE WE HAVE NO FURTHER
LINES IN QUEUE AT THIS TIME
THANK YOU SO MUCH AND WITH
THAT THANK YOU TO ALL THE
PANELISTS ARE ARE -- COMMITTEE
AND BUDGET CONSULTANTS AS
WELL AND THANK YOU TO ALL
THE MEMBERS OF PARTICIPATING
THIS IS THE INFORMATIONAL
HEARING IS ADJOURNED