ALL RIGHT. GOOD AFTERNOON. TODAY
IS FEBRUARY 13TH 2024, AND WE
ARE, UH, EXCITED TO BEGIN OUR
JOINT HEARING ON STATE SMALL
BUSINESS CREDIT INITIATIVE.
WELCOME TO OUR HEARING. UH, WE
ARE HOLDING THIS HEARING IN
PARTNERSHIP WITH THE MEMBERS OF
THE JOBS, ECONOMIC DEVELOPMENT
AND ECONOMY COMMITTEE. THIS IS
AN IN PERSON HEARING. ALL
PANELISTS WILL BE IN PERSON. WE
WILL TAKE QUESTIONS AT THE END
OF EACH PANEL AND THEN MOVE TO
PUBLIC COMMENTS. PUBLIC COMMENT
WILL BE TAKEN AT THE END OF THE
HEARING IN PERSON. HOWEVER IF
YOU CANNOT ATTEND IN PERSON, YOU
MAY SUBMIT YOUR COMMENTS VIA
EMAIL TO ASSEMBLY BUDGET AT
ASSEMBLY DOT èC DOT GOV OR
JETTY AT ASSEMBLY DOT CæA DOT
GOV. AND 2022. THE JOINT
COMMITTEE WAS UPDATED BY THE
STATE TREASURER AND IAN AS THEY
WERE APPLYING FOR THE FEDERAL S¼
S¼ B èC I PROGRAM THE FEDERAL
SSB èC PROGRAM IS DESIGNED TO
CATALYZE. PRIVATE CAPITAL IN THE
FORM OF LOANS AND INVESTMENTS IN
SMALL BUSINESSES, ESPECIALLY IN
HISTORICALLY UNDERSERVED
COMMUNITIES AND AMONG
ENTREPRENEURS WHO MAY BE MAY
HAVE OTHERWISE LACKED THE
SUPPORT TO PURSUE BUSINESS
AMBITIONS. TODAY OUR FIRST PANEL
WILL UPDATE THE COMMITTEES ON
THE S¼ S¼ B èC I PROGRAM AS
BOTH ENTITIES CONTINUE TO
IMPLEMENT AND MEET THE FEDERAL
REQUIREMENTS UNDER THE PROGRAM.
ADDITIONALLY WE WILL RECEIVE AN
UPDATE FROM THE CALIFORNIA
OFFICE OF SMALL BUSINESS
ADVOCATE Kò Ó S¼ B A AND ON A
NEW PART OF THE PROGRAM S¼ S¼ B
èC I TECHNICAL ASSISTANT AND
HOW THEY PLAN TO IMPLEMENT IT.
OUR SECOND PANEL WILL PROVIDE A
VIEWPOINT FROM THOSE WORKING
WITH SMALL BUSINESSES DIRECTLY
ON THE GROUND. THE GOAL OF
TODAY'S HEARING IS TO LEARN MORE
ABOUT HOW THE LEGISLATURE CAN
PARTNER WITH Kò Ó S¼ B, I BANK
AND THE STATE TREASURER TO
INCREASE AWARENESS ABOUT THE
CAPITAL LENDING AVAILABLE FOR
SMALL BUSINESSES, ESPECIALLY
THOSE IN UNDERSERVED
COMMUNITIES. THAT'S A LOT OF
ACRONYMS. AND WE SPEAK LANGUAGES
WHEN WE ARE UNDER DIFFERENT
UMBRELLAS, SO WE DON'T EXPECT
EVERYBODY TO KNOW WHAT Kò Ó S¼
B, A. IAN AND OTHER OF THESE ARE
BUT AS YOU COME UP HERE, PLEASE
DO YOUR BEST TO EXPLAIN IT. THIS
PARTNERSHIP SERVES TO PROMOTE
ECONOMIC GROWTH AND ENSURES
FISCAL RESPONSIBILITY AND HOW WE
USE OUR STATE RESOURCES.
ADDITIONALLY OUR AIM IS TO BRING
TRANSPARENCY TO THE PROCESS AND
REGULAR REPORTING BACK TO THE
LEGISLATURE AS THESE ENTITIES
CONTINUE. TO BE IMPLEMENTED WITH
THESE PROGRAMS. UH, WITHOUT
SAYING TOO MUCH MORE. I WILL
TELL YOU ONE OF MY GOALS AS
CHAIR OF THIS COMMITTEE IS TO
REALLY FIND OUT. WHO ARE THESE
FUNDS GOING TO, SO I'LL JUST
MAKE IT VERY SIMPLE. WHO HAS
ACCESS TO THESE FUNDS WHO
APPLIES AND HOW ARE THEY BEING
USED WITH THAT? I'M GOING TO
MOVE TO OUR FIRST, UH, PANEL.
BUT BEFORE I DO, I WANT TO OFFER
THE OPPORTUNITY TO OUR CO-CHAIR,
A SIMILARLY MEMBER VIA PU A FOR
ANY OPENING COMMENTS. THANK YOU.
CAN YOU HEAR ME? YEAH THANK YOU.
SO UH, CORK SILVA FOR YOUR
PARTNERSHIP ON THE JOINT HEARING
TODAY. I LOOK FORWARD TO HEARING
THE UPDATE ON THE STATE'S SMALL
BUSINESS CREDIT. INITIATIVE ON
HOW WE WILL HELP SMALL
BUSINESSES ACCESS CREDIT THROUGH
UPCOMING TECHNICAL ASSISTANCE
FUNDING. I'M INTERESTED IN IN
THE IMPORTANT ROLE OF
LEGISLATIVE PARTNERSHIP.
TRANSPARENCY REPORTING AND
ENGAGING THE LEGISLATE THE
LEGISLATURE THROUGH EACH STEP.
OUR COMMUNITIES ARE HUNGRY FOR
THIS INFORMATION AND READY TO BE
PART AND TAKE PART OF THESE
OPPORTUNITIES. THANK YOU TO ALL
THE PARTNERS, PARTNERS AND
STAKEHOLDERS WHO ARE TAKING PART
IN MAKING THIS HAPPEN. AND THANK
YOU TO THE PANELISTS THAT ARE
HERE TODAY WITH US, AND WE'RE
WE'RE WE'RE HOPING TO HEAR SOME
REALLY GOOD INFORMATION. JUST
LIKE MY COLLEAGUE SAYS, YOU
KNOW. WE WOULD LOVE WANNA KNOW.
YOU KNOW WHO'S DOING THIS JOB?
HOW DO WE GET THIS TO OUR
COMMUNITIES RIGHT BECAUSE THEY
ARE HUNGRY FOR THIS, AND I KNOW
THERE'S A LOT OF PEOPLE OUT
THERE THAT ARE WORKING VERY,
VERY HARD FOR THIS AND WE THANK
THEM. WE APPLAUD THEM. BUT WE
ALSO WANNA MAKE SURE FROM OUR
OUR POINT OF HOW WE CAN DO A
BETTER JOB. HOW CAN WE PARTNER
UP EVEN BETTER? SO THANK YOU
WITH THAT? THANK YOU, AND WE'RE
GONNA GO AHEAD AND BEGIN. WE'RE
GONNA INVITE PANEL ONE UP. AND
WITH THAT, UH, WE WILL BE
BEGINNING WITH L Ó, FOLLOWED BY
IAN AND THE TREASURER'S OFFICE
AND THEN CAL. Ó S¼ B, A. WE'RE
GONNA HAVE A QUIZ. AFTER THIS OF
WHO CAN SAY WHAT L A Ó IS.
WELCOME. I PLEASE INTRODUCE
YOURSELF AS YOU BEGAN. THANK
YOU, MADAM CHAIR. I'M A BRIAN
EULER WITH THE LEGISLATIVE
ANALYST OFFICE. UH AND I'M HERE
TO PROVIDE, UH, TO BRIEFLY
PROVIDE SOME BRAC BACKGROUND FOR
YOUR DISCUSSION TODAY ON THE
STATE SMALL BUSINESS CREDIT
INITIATIVE OR S¼ S¼, UH, B èC I
I'VE PREPARED A HANDOUT THAT
HOPEFULLY YOU ALL HAVE IN FRONT
OF YOU, UH, THAT'S MOSTLY FOR
YOUR REFERENCE. I'LL JUST BE
SORT OF SPEAKING FROM THAT.
LOOSELY UH SO, UH, S¼ S¼ P èC,
UM, GENERALLY IS A PROGRAM, A
FEDERALLY FUNDED PROGRAM THAT
PROVIDES FLEXIBLE FUNDING TO
STATES TO DEVELOP A LENDING
ASSISTANCE PROGRAMS. SMALL
BUSINESSES AND SO THINKING ABOUT
, UH, STARTING WITH
FUNDAMENTALLY WHAT IS THE
MOTIVATIONS FOR LENDING
ASSISTANCE PROGRAMS FOR SMALL
BUSINESSES? PART OF IT COMES
DOWN TO CONCERNS ABOUT, UH IT
BEING MORE DIFFICULT FOR SMALL
BUSINESSES TO ACCESS CREDIT THAN
LARGER BUSINESSES. THIS COULD BE
BECAUSE, UH, THEY HAVE LESS
CREDIT HISTORY. UH, THEY HAVE
LESS ESTABLISHED BUSINESS MODELS
, OR THEY MAY HAVE FEWER ASSETS,
UH, THAT THEY CAN PLEDGE IN
SUPPORT OF LOANS. UM ALSO, BANKS
OR OTHER LENDERS MAY SEE SMALLER
LOANS AS LESS PROFITABLE THAN
LARGER ONES. UH, ANOTHER UH UH,
THE, UH, THESE PROGRAMS ATTEMPT
TO ADDRESS OUR HISTORICAL
DISPARITIES IN ACCESS TO CREDIT
AMONG SMALL BUSINESS OWNERS IN
PARTICULAR, UH, BLACK AND
HISPANIC LATINO BUSINESS OWNERS
FACING DISPROPORTIONATE
CHALLENGES TO, UH, ACCESS
CREDIT. UM SO, UH, IN THIS AREA
OF, UH, SMALL BUSINESS LENDING
ASSISTANCE, UH, THE FEDERAL
GOVERNMENT DOES PLAY A KEY ROLE
IN ADMINISTERING THE MOST WIDELY
USED SMALL BUSINESS LENDING
ASSISTANCE PROGRAMS AND ALSO IN
IN PROVIDING, UH UH, A MAJORITY
OF THE FUNDING FOR STATE LEVEL
SMALL BUSINESS LENDING
ASSISTANCE PROGRAMS. UM AND ONE
OF THOSE, UH, KEY FEDERAL
FUNDING FOR FEDERALLY FUNDED
PROGRAMS IS THE SUBJECT OF
TODAY'S HEARING. S¼ S¼ B èC. I,
UH, THE PROGRAM WAS CREATED IN
2010, AT WHICH TIME CALIFORNIA
RECEIVED AN ALLOCATION OF $160
MILLION. THOSE FUNDS HAVE SINCE
ALL BEEN EXPENDED, BUT THEY DO
CONTINUE TO BE RECYCLED, AND
THAT'S WHEN THE ORIGINAL LOANS
THAT WERE SU SUPPORTED ARE PAID
OFF. THOSE FUNDS BECOME FREED UP
AND THEY CAN BE USED AGAIN FOR
THOSE PURPOSES, UH, MORE
RECENTLY. UH THE FEDERAL
GOVERNMENT, UH, MADE A SECOND.
UH, ALLOCATION A ROUND OF
ALLOCATION IN 2022 IN CALIFORNIA
RECEIVED A $1.2 BILLION OR IS
SET TO RECEIVE $1.2 BILLION.
THOSE PAYMENTS WILL COME, UH, IN
THREE TRANCHES, UH, THE FIRST OF
WHICH WE'VE ALREADY RECEIVED
$357 MILLION IN ABOUT 60% OF
THAT HAS BEEN EXPENDED. UH, THE
STATE WILL RECEIVE ITS NEXT
PAYMENT OF 400 MILLION WHEN WE
HAVE SPENT AT LEAST 80% OF THAT
FIRST THREE 157 MILLION, UM. SO
WITHIN S¼ S¼ B èC. I UH, STATES
HAVE A CHOICE OF IMPLEMENTING
GENERALLY FIVE TYPES OF LENDING
ASSISTANCE PROGRAMS. UM AND, UH,
THERE'S SOME INFORMATION ON
THOSE FIVE TYPES ON PAGE TWO OF
MY HAND OUT. I WON'T GO THROUGH
THE DETAILS TOO MUCH. BUT YOU
HAVE THAT THERE FOR REFERENCE
KIND OF A GENERAL DESCRIPTION OF
THEM, UH, IN SHORT, THE FIVE
TYPES AND YOU'LL PROBABLY HEAR
HEAR MORE ABOUT THEM TODAY. OUR
LOAN GUARANTEE PROGRAMS, LOAN
PARTICIPATION PROGRAMS,
COLLATERAL SUPPORT, CAPITAL
ACCESS PROGRAMS AND VENTURE
CAPITAL FUNDS. SO AGAIN, THERE'S
A BRIEF DESCRIPTION FOR YOUR
REFERENCE THERE ON PAGE TWO OF
THE HANDOUT OF THOSE OF
PROGRAMS. UM CALIFORNIA AND ITS
IMPLEMENTATION OF S¼ S¼ P èC
HAS FOUR OF THOSE TYPES OF
PROGRAMS CURRENTLY IN PLACE AND
IS WORKING TOWARDS OFFERING UH
ALL FIVE TO IMPLEMENT THOSE
PROGRAMS. THE STATE, UH,
GENERALLY SPLITS THE FUNDING
5050 BETWEEN TWO STATE AGENCIES.
THE FIRST IS IAN WITHIN GOBI,
UH, AND THE SECOND IS THE, UH,
CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY WITH THE
STATE TREASURER'S OFFICE. I
BANK. UH, MINISTER'S TWO
PROGRAMS, A LOAN GUARANTEE
PROGRAM AND A SMALLER VENTURE
CAPITAL FUND PROGRAM. UH THE, UH
, POLLUTION CONTROL AUTHORITY,
UH, ADMINISTERS A CAPITAL ACCESS
PROGRAM AND A COLLATERAL SUPPORT
PROGRAM AND IS WORKING TOWARDS
STANDING UP A LOAN PARTICIPATION
PROGRAM AS WELL. UH, YOU'LL BE
HEARING A LOT MORE DETAILS ABOUT
THOSE PARTICULAR PROGRAMS FROM
UH MY OTHER PANELISTS WHO
ADMINISTER THEM. UH, SO, I. I
WON'T GO INTO TOO MUCH DETAIL ON
THOSE. I DID JUST WANNA LEAVE
YOU WITH YOU KIND OF, UH,
SUGGESTED QUESTIONS OR TOPICS
UH, THAT, UM YOU EXPLORE WITH
THE PANELISTS TODAY? UH THE
FIRST, UH, IS THE, UH, THE ISSUE
OF WHAT INFORMATION IS BOTH
COLLECTED AND REPORTED ABOUT THE
BUSINESSES IN THE IN THE IN THE
TYPES OF BUSINESS OWNERS THAT
ARE BENEFITING FROM THIS PROGRAM
. UH THERE ARE SOME FEDERAL
RULES AROUND A GOALS FOR, UH, A
SPECIFICALLY 40 AT LEAST 49% OF
THE FUNDING BEING ALLOCATED TO
SO CALLED SO ECONOMICALLY
DISADVANTAGED. UH, INDIVIDUALS,
UH, BASED ON FEDERAL DEFINITIONS
AND ONE QUESTION IS, UH, WHETHER
OR NOT THE CURRENT PROGRAM
ADMINISTRATOR ARE ADMINISTRATORS
ARE FACING ANY KEY CHALLENGES IN
IN MEETING THOSE OBJECTIVES. UM
BUT ALSO YOU KNOW, IT'S WORTH
EXPLORING, UH, WHETHER OR NOT
THERE'S ADDITIONAL REPORTING, UH
, THAT THE THAT THE PROGRAMS
NEED TO DO TO REALLY PROVIDE THE
INFORMATION THE LEGISLATURE IS
LOOKING FOR ABOUT THESE PROGRAMS
. UH UH, IT SEEMS LIKE SOME OF
THE VOLUNTARY REPORTING THAT'S
REQUIRED BY FEDERAL LAW MAY NOT
BE GETTING ALL THE INFORMATION
THAT YOU WOULD NECESSARILY BE
LOOKING. RUNNING IS WHAT ARE THE
BEST AND MOST APPROPRIATE USES
OF THE SO CALLED RECYCLED FUNDS
THAT THE FUNDS THAT BECOME FREED
UP OVER TIME AS THE LOANS ARE
PAID OFF, AND ESPECIALLY AS WE
GET OUTSIDE THE WINDOW OF TIME
WHEN THE FUNDS HAVE TO
NECESSARILY BE SPENT UNDER
FEDERAL RULES, AND THE STATE
MIGHT HAVE MORE FLEXIBILITY TO
CRAFT A PROGRAM THAT IS MORE IN
LINE WITH ITS PRIORITIES. UM SO
THAT WILL TAKE QUESTIONS FROM
THE COMMITTEE AT THE APPROPRIATE
TIME. THANK YOU, UH AND WE'LL GO
AHEAD AND WAIT FOR QUESTIONS TO
ALL. UH WE HAVE ALL OF OUR
PANELISTS ON NEXT WE HAVE WE
HAVE CLINT KELLUM. THANK YOU.
GOOD AFTERNOON. I'M CLINT CALLUM
I'M THE CHIEF DEPUTY EXECUTIVE
DIRECTOR OF THE CALIFORNIA
INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK, OR WE GO BY I
BANK FOR SHORT SINCE THAT'S
SOMEWHAT OF A LONG NAME I MAKE
AS PART OF THE GOVERNOR'S OFFICE
OF BUSINESS AND ECONOMIC
DEVELOPMENT AND WE SERVE AS THE
STATE'S ONLY GENERAL PURPOSE
FINANCING AUTHORITY. OUR MISSION
IS TO PROVIDE FINANCIAL
ASSISTANCE THAT SUPPORTS
INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT IN CALIFORNIA. WE
HAVE THREE MAIN PRIORITIES ALONG
WHICH WE OPERATE. CREATING JOBS
REACHING UNDERSERVED COMMUNITIES
IN ADDRESSING CLIMATE CHANGE,
AND THAT'S SBC IS ONE OF THE KEY
COMPONENTS OF THAT WORK. AH! THE
ELIO SPOKE ABOUT THE FIRST
ITERATION OF SBC, I WE CALL THAT
S S B C. 1.0 WE'RE PROUD OF OUR
RESULTS IN THAT OPPORTUNITY OF
THE TOTAL NUMBER OF LOANS
PROVIDED NATIONWIDE. THERE WAS
ABOUT 21,000 IN CALIFORNIA
ISSUED NEARLY HALF OF THOSE
LOANS OF THE JOBS CREATED AND
RETAINED NATIONWIDE. THERE WAS
MORE THAN 240,000 AND WE WERE
RESPONSIBLE FOR ONE THIRD.
ALMOST 40. AND WHEN IT COMES TO
TRANSACTIONS, SUPPORTING WOMEN
OR MINORITY OWNED BUSINESSES, WE
HAD NEARLY 62% OF OUR
TRANSACTIONS WITH THOSE
COMMUNITIES. LOOKING FORWARD
HERE TO THE MOST RECENT
ITERATION OF SBC, WHICH WE CALL
US SBC 2.0 FREEZE. SO IF YOU CAN
OBLIGES WITH THAT ACRONYM, I
APPRECIATE IT. UH I'VE BANGED
HIS MINISTERING TO OF THE
CURRENT CAPITAL PROGRAMS, THE
SMALL BUSINESS LOAN GUARANTEE
PROGRAM AND THE EXPANDING
VENTURE CAPITAL ACCESS PROGRAM.
THERE'S ALSO A SEPARATE TA
ALLOCATION THAT'S BEING PROVIDED
IN SBC, AND THAT WILL BE
DISCUSSED LATER IN THE PANEL.
I'M PROUD TO SAY THAT AGAIN,
CALIFORNIA'S LEADING IN
DEPLOYMENT OF SBC 2.0. THE US
TREASURY'S MOST RECENT REPORT
SHOWS THAT CALIFORNIA DEPLOYED
$161 MILLION OF CAPITAL FUNDS TO
AND AS THE END OF SEPTEMBER, THE
NEXT CLOSEST STATE WAS A LITTLE
LESS THAN A LITTLE LESS THAN 60
MILLION BEHIND US. UM ARE
LONGSTANDING PROGRAM THAT WE'VE
UTILIZED AS SPECIE FOR IN THE
PAST AND HAS BEEN AROUND THE
STATE FOR A LONG TIME AS OUR
LOAN GUARANTEE PROGRAM. IT'S
BEEN AROUND SINCE 1968 AND IT
BECAME PART OF MY BANK IN 2013.
IT'S NOT A LENDING PROGRAM. IT'S
NOT CAPITAL GOING OUT THE DOOR,
BUT IT SUPPORTS LENDING TO SMALL
BUSINESSES BY BEING A RISK
MITIGATION TOOL TO THE LENDERS.
THIS MAKES THEM MORE COMFORTABLE
OR MORE LIKELY TO MAKING ALONE
THAT THE OTHERWISE NGUYEN TO A
CAPITAL OF BUSINESS THAT WOULD
MAY STRUGGLE TO ACCESS CAPITAL.
OUR LOAN GUARANTEE PROGRAM
PROVIDES UP TO AN 80% GUARANTEE
ON LOANS MADE BY A LENDER. AND
IF THE BORROWER DEFAULTS ON THE
LOAN, THE LEONARD CAN GET REPAID
UP TO 80% OF THE OUTSTANDING
PRINCIPLE. AS AT THE END OF
DECEMBER, OUR LOAN GUARANTEE
PROGRAM HAD APPROVED $181
MILLION IN LOAN GUARANTEES WITH
SSB CI 2.0 FUNDS. OUR DATA SHOWS
THAT MORTY EIGHT MORE THAN 80%
OF OUR BORROWERS, BENEFITING
FROM 2.0 LOAN GUARANTEES ARE IN
UNDERREPRESENTED GROUPS AND 80%
IS GOING TO SMALL BUSINESSES
WITH FEWER THAN 10 EMPLOYEES.
BUT THAT S P C. I 2.0 WE HAVE
ALSO CREATED A NEW PROGRAM
EXPANDING VENTURE CAPITAL
ACCESS. THIS IS A UNIQUE
OPPORTUNITY FOR US TO CATALYZE A
MORE INCLUSIVE VENTURE CAPITAL
ECOSYSTEM. WHERE UTILIZING $200
MILLION OF RSS PC I FUNDS TO
INVEST IN UNDERREPRESENTED
VENTURE FUND MANAGERS,
ENTREPRENEURS, GEOGRAPHIC AREAS
OF CALIFORNIA THAT RECEIVED
LITTLE VENTURE CAPITAL FUNDING.
OR, UM FUNDS FOCUSING ON CLIMATE
EQUITY CLIMATE JUSTICE IN 2013,
OUR VENTURE CAPITAL PROGRAM
CLOSEST FIRST INVESTMENT OF $4.1
MILLION INTO UNSHACKLED VENTURES
, WHICH IS FOUNDED BY IMMIGRANT
ENTREPRENEURS WHO INVEST IN
VISIONARY IMMIGRANT FOUNDERS. IN
ADDITION TO UNSHACKLED BANK HAS
CLOSED. ONE OTHER FUND IS IN THE
PROCESS OF CLOSING ONE MORE, AND
THERE ARE MANY MORE ON THE
HORIZON. IN ADDITION TO THE
PROGRAMS WE OPERATE, IT'S WORTH
HIGHLIGHTING THE CLOSE
COLLABORATION WE'RE DOING WITH
OUR STATE PARTNERS HERE TODAY.
WE HAVE BEEN VERY INTENTIONAL,
ENSURING ONGOING COORDINATION,
COMMUNICATION AND OUTREACH WITH
CPC F A AND THE CALIFORNIA
OFFICE OF SMALL BUSINESS
ADVOCATE OR KALA S B. A. THIS
COLLABORATION ENSURES
CONSISTENCY AND CONTINUITY
ACROSS OUR SMALL BUSINESS
PROGRAMS THAT BENEFIT OUR
PARTNERS, STAKEHOLDERS AND, MOST
IMPORTANTLY, THE SMALL
BUSINESSES WE SUPPORT WE ARE
HEAVILY FOCUSED ON ENROLLING
MISSION DRIVEN LENDERS LIKE C D
F, I S AND MDS WHO EXIST TO
SERVE THOSE TRADITIONALLY LEFT
BEHIND IN 2019. WE HAD 28 C D. F
I S AND MD'S LENDERS IN OUR
PROGRAM TODAY THAT NUMBER IS 52
AND 86% INCREASE. LOOKING AHEAD.
CALIFORNIA IS RAPIDLY
APPROACHING ENCUMBRANCE AT THE
1ST 80% OF RSS. BC FUNDS WHICH
MEANS WILL BE ELIGIBLE FOR A
SECOND CHANCE OF FUNDS IN THE
COMING MONTHS. OUR GOAL FOR ALL
THE S S B C CAPITAL FUNDS IS TO
BUILD PERMANENT, ECONOMICALLY
SUSTAINABLE SMALL BUSINESS
FINANCING OPPORTUNITIES THAT CAN
CONTINUE TO RECYCLE AND GROW
LONG INTO THE FUTURE. THANK YOU.
THANK YOU. NEXT WE HAVE SHEILA,
UH, TO BE US DANIEL, EXECUTIVE
DIRECTOR OF CALIFORNIA POLLUTION
CONTROL FINANCING AUTHORITY.
THANK YOU, MADAM CHAIR. UM THANK
YOU FOR HAVING US THIS EVENING
THIS AFTERNOON. WE'RE HAPPY TO
BE HERE TO TALK ABOUT S S B C, I
I'M SURE TOBIAS DANIEL,
EXECUTIVE DIRECTOR OF THE
CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY, ONE OF THE
14 BOARDS, COMMISSIONS AND
AUTHORITIES OF THE TREASURER'S
OFFICE, BUT WE ALSO ADMINISTER
THE CALIFORNIA CAPITAL ACCESS
PROGRAM. BUT WE'RE GOING TO GO
BY CPC FAA TODAY BECAUSE THAT
ACRONYM WOULD JUST BE TOO LONG.
SO WE'RE GONNA TRY TO SHORTEN
THAT FOR YOU. AS YOU'VE ALREADY
HEARD. L A OH, AND OUR PARTNER.
I BANK EXPLAIN. THERE ARE
MULTIPLE PROGRAMS WITHIN
CALIFORNIA'S SSB CI EFFORT. MY
PARTNER FROM MY BANK HAS TALKED
A LITTLE BIT ABOUT THERE'S WE
PARTNERED WITH MY BANK FOR THE
U. S TREASURY APPLICATION ON THE
STRENGTH OF TWO DIFFERENT CREDIT
ENHANCEMENT PROGRAMS. ARE
CALIFORNIA CAPITAL ACCESS
PROGRAM, OR CAL CAP FOR SMALL
BUSINESS ESTABLISHED IN 1994 AND
OUR CAL CAP COLLATERAL SUPPORT
PROGRAM ESTABLISHED IN 2013 ARE
CAL CAP FOR SMALL BUSINESS
PROGRAM. WE USE A LOAN LOSS
RESERVES MODEL WHERE WE COME
BIND. LOANS FOR COVERAGE, EACH
PARTICIPATING FINANCIAL
INSTITUTION HAS A LOAN LOSS
RESERVE ACCOUNT ESTABLISHED FOR
THEM AND UPON ENROLLMENT OF A
LOAN AND CONTRIBUTIONS FROM
MULTIPLE LOANS ENROLLED BY THAT
LENDER ARE COMBINED IN THE LOAN
LOSS RESERVE. THIS PROGRAM CAN
COVER UP TO 100. OF PLAYING
AMOUNT IN THE EVENT OF A DEFAULT
OF ALONE. OUR CAL CAP COLLATERAL
SUPPORT PROGRAM. NOW THIS
PROGRAM DOES NOT COMBINED LOANS,
EACH LOAN ENROLLED BY A
PARTICIPATING FINANCIAL
INSTITUTION IS ASSIGNED ITS OWN
UNIQUE COLLATERAL SUPPORT
ACCOUNT TO HOLD THE CASH PLEDGE,
REGARDLESS IF A LENDER HAS 10 OR
1000 LOANS AND CAL CAP FOR
COLLATERAL SUPPORT, EACH LOAN
WILL HAVE ITS OWN COLLATERAL
SUPPORT ACCOUNT. IF THE LENDER
HAS A CLAIM THEY CAN RECEIVE UP
TO 100% OF THE CLAIM AMOUNT
SUBJECT TO THE COLLATERAL
SUPPORT ACCOUNT BALANCE. SO THAT
WE'VE MADE SOME CHANGES TO BOTH
THOSE PROGRAMS. WE LISTEN TO OUR
LENDERS FROM 1.0. UM TO MAKE THE
TRANSITION TO 2.0, AND THERE
WERE SOME CHANGES WE MADE. SO
FOR OUR CAL CAP FOR SMALL
BUSINESS, THAT'S THAT LOAN LOSS
RESERVE MODEL. WE REMOVED THE
PERIODIC RECAPTURE TO APPEAL TO
LENDERS AND TO BRING MORE
LENDERS BACK INTO THE PROGRAM.
SOME LEFT AFTER 1.0 BECAUSE THEY
DID NOT LIKE THAT RECAPTURE
FEATURE. WE REMOVED THAT TO
BRING THEM BACK. WE INCREASED
OUR PRIMARY CONTRIBUTION
MATCHING AMOUNT TO THE MAXIMUM
ALLOWED BY S S B. C I GUIDELINES
TO APPEAL TO LENDERS AS IT
INCREASES THE AMOUNT AVAILABLE
FOR CLAIMS SO THE LENDER WILL
CONTRIBUTE UP TO 3.5. BORROWER.
UPON THE LENDERS. DISCRETION CAN
CONTRIBUTE UP TO 3.5. OUR
PROGRAM WILL COME IN AND MATCH
THOSE COMBINED WITH 7% SO IT CAN
BE UP TO 14. ON TOP OF THAT WE
HAVE STATE FUNDS THAT WE WILL
USE FOR SEVERELY AFFECTED
COMMUNITIES LIKE THE COMMUNITIES
JUST AFFECTED DOWN IN SOUTHERN
CALIFORNIA BY THE FLOODS. WE CAN
COME IN WITH AN ADDITIONAL 3.5%
OF STATE FUNDS TO MAKE IT 17.5,
SO WE DO OUR BEST TO TRY TO MAKE
THOSE LOAN LOSS RESERVE
ACCOUNTS. SUBSTANTIAL SO THAT WE
REALLY GIVE THEM A GOOD
INCENTIVE TO USE THAT PROGRAM
FOR LOANS THAT THEY MIGHT NOT
OTHERWISE BE COMFORTABLE MAKING
TO THOSE BORROWERS. UM ON OUR
COLLATERAL SUPPORT SIDE. WE HAVE
REDUCED THE MINIMUM LOAN AMOUNT
FROM 50,000 TO 25,000 HEARD FROM
A LOT OF OUR LENDERS THAT THAT
WOULD BE MORE USEFUL. UM AND
WE'VE SIMPLIFIED AND INCREASE
THE MAIN CASH PLEDGE PERCENTAGE
TO 40% FOR ALL LOANS ELIGIBLE
FOR COLLATERAL SUPPORT TO APPEAL
TO LENDERS AS IT SIMPLIFIES AND
MAY INCREASE THE AMOUNT
AVAILABLE FOR A CLAIM. THIS
REPLACED A MULTI TIERED SYSTEM
THAT PROVIDED 40% FOR LOANS
UNDER 250,000 AND SO ON. WE
INCREASE THE MAXIMUM CASH
PLEDGED TO 10 MILLION. SO THE
MAXIMUM, UM, LOAN FOR THAT
PROGRAM IS 20 MILLION. WE WILL
PLEDGE UP TO HALF OF IT. 10
MILLION SO THAT'S VERY POPULAR
WITH A LOT OF LIKE OUR
MANUFACTURING SMALL BUSINESSES,
SO THIS REPLACED THE MAXIMUM OF
2.5 MILLION AND THE FULL CASH
PLEDGE NOW AVAILABLE UNTIL
ENROLLMENT MATURES. WE USED TO
SWEEP 25% OF IT ANNUALLY OVER
FOUR YEARS, BUT NOW WE LEAVE THE
WHOLE AMOUNT THERE UNTIL THE END
OF THE PERIOD. THE FIVE YEAR
PERIOD AND THIS HAS BEEN A VERY
POPULAR PROGRAM WITH OUR
LENDERS. THEY LIKE THAT CHANGE.
UM THE EXPANDED ADDITIONAL CASH
PLEDGE OF 10% FROM STATE FUNDS
TO INCLUDE BOTH SEVERELY
AFFECTED COMMUNITIES AND
SOCIALLY ECONOMIC DISADVANTAGE.
INDIVIDUAL COMMUNITIES WE ARE
GOING TO ADD A THIRD PROGRAM.
THIS IS A LONG PARTICIPATION
PROGRAM. WE LOOKED AT OUR
LANDSCAPE OF LENDERS WERE MOSTLY
WORKING WITH COMMUNITY. UM
DEVELOPMENT, FINANCIAL
INSTITUTIONS, OR C D F I S UM
AND CREDIT UNIONS WE WANTED TO
BRING IN COMMUNITY BANKS, THOSE
FOLKS THAT ARE RIGHT IN THOSE
COMMUNITIES SITTING ACROSS FROM
A TABLE TALKING TO THAT BORROWER
, WE WANT TO BRING THEM INTO OUR
LENDER NETWORK, SO WE ARE
DESIGNING A LONG PARTICIPATION
PROGRAM. THAT WILL PRIMARILY
WORK WITH THOSE COMMUNITY BANKS.
THERE ARE OPPORTUNITIES TO
PARTNER WITH CD F I S AND CREDIT
UNIONS AS WELL. BUT THIS WILL BE
A STATEWIDE LONG PARTICIPATION
PROGRAM. FOR SERVING OUR 58
COUNTIES FOR CALIFORNIA. SO WE
ARE CURRENTLY IN THE, UM IN THE
IN THE PROCESS OF ESTABLISHING
OUR REGULATIONS. UM, THE
CONTRACT AND THE RFP TO GO OUT
FOR THAT PROGRAM. WE ARE ALSO
LOOKING AT ANOTHER LAW
PARTICIPATION PROGRAM THAT WILL
TARGET UM, L L A METRO. THEY
HAVE A TWO MILE CORRIDOR AROUND
THEIR NEW TRANSIT LINE FROM
LITTLE TOKYO GOING OUT TO THE
AIRPORT, AND THERE ARE TONS OF
STEADY BUSINESSES AROUND THAT
CORRIDOR, AND THEY HAVE AN
ECONOMIC DEVELOPMENT PROGRAM
WHERE THEY'RE TRYING TO HELP
THOSE BUSINESSES IN THAT
COMMUNITY. THEY HAVE COME TO US
ASKING US IF THERE MAY BE AN
OPPORTUNITY TO PARTNER WITH
THEM. FOR OUR OWN PARTICIPATION
PROGRAM TO PROVIDE LOANS FOR
THAT EFFORT, AND WE ARE
CURRENTLY IN TALKS WITH THEM TO
DO THAT, IN TERMS OF OUTREACH.
WE WERE TEAM CALIFORNIA. IT'S A
COLLABORATIVE EFFORT. WE WORK
WITH OUR PARTNERS AT THE BANK
ARE PARTNERS AT CAL O S B, A TO
REACH THE DIFFERENT TECHNICAL
ASSISTANCE PROVIDERS. MAKE SURE
THAT THEY'RE EDUCATED ON OUR
PROGRAM. WE SEEK OPPORTUNITIES
FOR INNOVATION AND COLLABORATION
WITH THE DIFFERENT TECHNICAL
ASSISTANCE PROVIDERS WHEREVER WE
CAN APPEAR TO SPEAK TO FOLKS
ABOUT S S B C I AND R CALIF CAT
PROGRAMS WHERE THERE TODAY I
LIKE TO EXTEND THE INVITATION TO
ALL OF YOU FOR YOUR DISTRICTS
AND YOUR DISTRICT OFFICES AND
YOUR LEADERS. UM I'D BE HAPPY IF
YOU'D HAVE US COME DOWN PRESENT.
TALK TO THE FOLKS IN YOUR
COMMUNITIES ABOUT R S S B. C I
FIND OUT HOW WE CAN BEST PARTNER
TO GET OUR PROGRAMS OPEN TO ALL
OF YOUR FOLKS. SO THANK YOU FOR
THAT TODAY. THANK YOU. AND WE
ALL HAVE OUR LAST PANELISTS ON
THIS FIRST PANEL, AND THAT WILL
BE TERRIBLE IN GRAY, DIRECTOR OF
CALIFORNIA OFFICE OF SMALL
BUSINESS ADVOCATE L. O S B A.
AND I THINK I SAID YOUR NAME
WRONG. WAS IT THAT SHAYLA?
SHEILA SHEILA. OKAY, TARA, TARA
LYNN. THANK YOU AND GOOD
AFTERNOON CHAIR QUIRK-SILVA
CHAIR VÆ VALLAPUDUA AND
COMMITTEE MEMBERS. THANK YOU FOR
THE OPPORTUNITY TO PRESENT
BEFORE THE ASSEMBLY BUDGET
SUBCOMMITTEE ON STATE
ADMINISTRATION AND THE ASSEMBLY
JOBS, ECONOMIC DEVELOPMENT AND
ECONOMY COMMITTEE. I AM CAROLYN
GRAY. I SERVE AS THE DIRECTOR OF
CALIFORNIA'S OFFICER, THIS SMALL
BUSINESS ADVOCATE KNOWN AS CALLE
O S B, A. AND, YES, WE SAY EVERY
LETTER UM, THAT NAME, UM AS THE
COMMITTEE, BACKGROUND PAPER AND
CALLOW SBS ESTATE OF DIVERSE
BUSINESS IN CALIFORNIA.
EXECUTIVE SUMMARY NOTE.
CALIFORNIA BOASTS AN IMPRESSIVE
4 MILLION PLUS SMALL BUSINESSES
WITH APPROXIMATELY 1.9 MILLION
BEING MINORITY OWNED. THESE
DIVERSE BUSINESSES CONSTITUTE
ABOUT 46% OF ALL BUSINESSES IN
THE STATE AND CONTRIBUTE NEARLY
$193 BILLION IN ECONOMIC OUTPUT,
WHICH IS MORE THAN ANNUAL GROSS
DOMESTIC PRODUCT OF 18. MEAN? U
S STATES THEY GENERATE NEARLY
$29 BILLION IN TAX REVENUE
SUPPORTING 2.56 MILLION JOBS.
I'M THRILLED TO BE HERE TODAY TO
TALK ABOUT KALA S B, A AND THE
SUCCESS THAT WE INTEND MAKING
CALIFORNIA COMPETITIVE FOR THE U
. S TREASURIES. FIRST OF ITS
KIND OF SSB CI TECHNICAL
ASSISTANCE FOR CAPITAL READINESS
GRANT PROGRAM. CALIFORNIA
SECURED 25.3 MILLION LAST AUGUST
. THIS WAS ROUGHLY 44% OF THE
TOTAL AVAILABLE FUNDS NATIONWIDE
. THIS PROGRAM IS DESIGNED TO
COMPLEMENT THE SSB CI CAPITAL
PROGRAMS THAT YOU JUST HEARD
ABOUT WHILE ACCESS TO CAPITAL IS
A KEY COMPONENT FOR SMALL
BUSINESS, STABILITY, RESILIENCE
AND GROWTH. PARTICULARLY FOR
HISTORICALLY UNDERSERVED SMALL
BUSINESSES WHO DO NOT HAVE
ACCESS TO CAPITAL THAT HELPS
THEM START AND GROW THEIR
BUSINESSES AND EVEN WHEN THEY
HAVE ACCESS TO CAPITAL, THEY
OFTEN FACE SIGNIFICANT BARRIERS
AND THEIR LOAN APPLICATIONS ARE
USUALLY DECLINED. DUTY
INSUFFICIENT CREDIT. DEBT TO
INCOME RATIO, MISSING DOCUMENTS
AND A GENERAL LACK OF CAPITAL
PREPARED GUESTS. THE TECHNICAL
ASSISTANCE PROGRAMS THAT WE WILL
BE RUNNING WILL PROVIDE VITAL
AID TO HELP SMALL BUSINESSES
WITH THE FOCUS ON SOCIALLY AND
ECONOMICALLY DISADVANTAGED,
INDIVIDUAL OWNED BUSINESSES. WE
CALL THAT CT FOR SHORT, VERY
SMALL BUSINESSES. WE CALL THOSE
V S BS FOR SHORT AND SMALL
MANUFACTURING ENTERPRISES. WE
CALL THOSE S M E S. THIS PROGRAM
WILL HELP SMALL BUSINESSES
BECOME CAPITAL READY, PREPARING
THEM TO TAKE ON LOANS OR
INVESTMENT AND STEWART CAPITAL
FOR SMALL BUSINESS SUCCESS. CAL
O S B A IS PUTTING THESE FEDERAL
FUNDS TO WORK BY AUGMENTING THE
STATE'S EXISTING NETWORK OF
SMALL BUSINESS DEVELOPMENT
CENTERS TO ENHANCE THEIR
TECHNICAL ASSISTANCE EFFORTS AS
WELL AS OUR COMMUNITY BASED
ORGANIZATIONS, USB A ISSUED A
SOLICITATION THAT WAS
SIGNIFICANTLY OVERSUBSCRIBED TO
SELECT APPROXIMATELY 33
PROVIDERS TO FUND KEY ROLES. TO
PROVIDE SERVICES THAT A INCREASE
AWARENESS AND READINESS FOR
ENTREPRENEURS AND SMALL
BUSINESSES APPLYING FOR CAPITAL
B RESULT IN SUCCESSFUL
ACQUISITION OF CAPITAL AS WELL
AS SUPPORTIVE SERVICES, POST
ISSUANCE OF ALONE AND SUPPORT
THE EQUITABLE COVERAGE OF SMALL
BUSINESSES ACROSS THE STATES,
VAST GEOGRAPHIC REGIONS AND
LASTLY, TO INCREASE LEGAL,
ACCOUNTING AND FINANCIAL
MANAGEMENT SKILLS. GIVEN THAT
MANY SMALL BUSINESSES HAVE
ALREADY HAD TOUCH POINTS WITH
THEIR LOCAL SMALL BUSINESS
DEVELOPMENT CENTERS AND
COMMUNITY BASED ORGANIZATIONS,
THERE'S TRUST AND CREDIBILITY
THAT EXISTS IN THIS NETWORK. USB
A WILL LEVERAGE THIS NETWORK TO
CONDUCT OUTREACH AND ENGAGEMENT
ON THE S S B. C I PROGRAMS AND
THE SELECTED PROVIDERS WILL FORM
A MESH NETWORK THAT WAS
CENTRALIZED COMMUNICATION AND
INFORMATION SHARING. IF YOU
WOULD REFER TO YOU. IT'S LIKE,
TWO IN YOUR HANDOUT. THAT IS AN
EXAMPLE OF OUR NETWORK DESIGN.
SIMULTANEOUSLY KLOS B A WILL
ROLL OUT IN INFORMATION SHARING
PLATFORM. SO THAT SMALL BUSINESS
UM CUSTOMERS WHO ARE GOING
THROUGH THEIR JOURNEY. THEIR
DATA WILL BE, UM, SHARED
CONFIDENTIALLY AMONGST THOSE
THAT ARE PARTICIPATING IN OUR
TECHNICAL ASSISTANCE PROGRAM. WE
FEEL THAT THIS WILL HELP SAVE
TIME AND MONEY FOR THE SMALL
BUSINESSES WHILE BUILDING TRUST
IN THE NETWORK THROUGH
TRANSPARENCY AND SIMPLICITY. THE
PROGRAM WILL ALSO CREATE A
SPECIFIC JOURNEY MAP. FIRST
SMALL BUSINESSES THAT IS ON
SLIDE FOUR IN YOUR HAND OUT AND
THIS JOURNEY TRACKS WHERE AND
HOW SMALL BUSINESSES WILL
NAVIGATE THE CAPITAL ACCESS
NETWORK WHILE TRACKING AND
REPORTING KEY DATA THAT IS
REQUIRED. BUY US TREASURY FOR
REPORTING AND COMPLIANCE
PURPOSES. KALA S B. A HAS ISSUED
NOTICES OF INTENT TO SELECTED
PROVIDERS AND I'M PLEASED TO
REPORT THAT 21 OF THE 33 LEADERS
OF THE PROPOSED AWARDEES
REPRESENT ETHNIC POPULATIONS
THAT HAVE HISTORICALLY FACED
BARRIERS TO ACCESSING CAPITAL,
WHICH INCLUDE LATINO AND
HISPANIC. BLACK AND AFRICAN
AMERICAN, NATIVE AMERICAN, ASIAN
AND MIDDLE EASTERN POPULATIONS.
UH 22 CENTERS SPECIALIZE IN
WORKING WITH IMMIGRANT
ENTREPRENEURS AND THREE ARE LED
BY L G B T Q EXECUTIVES, THE
COLLECTIVE REACH OF THE 33 PER
PROSPECTIVE AWARD. HE'S IS
INCLUSIVE. AH GEOGRAPHICALLY AS
WELL ADDRESSES THE NEEDS OF BOTH
RURAL AND METROPOLITAN AREAS
FROM THE SOUTHERN BORDER TO THE
INLAND EMPIRE. COAST CENTRAL SAN
JOAQUIN VALLEY, NORTH SAN
JOAQUIN VALLEY, NORTH STATE.
REDWOOD COAST, SACRAMENTO, THE
EASTERN SIERRAS AND THE BAY
AREA. LASTLY THE PROPOSED
AWARDEES HAVE EXPERTISE IN
WORKING WITH UNDERSERVED
COMMUNITIES, PARTICULARLY THOSE
WITHIN THE CITY POPULATION.
THROUGH US TREASURIES. SUPPORT
USB IS CREATING A FIRST OF ITS
KIND, INNOVATIVE TECHNOLOGY
POWERED SOCIAL SOLUTION THAT
BRINGS THE KEY STAKEHOLDERS
ACROSS THE SMALL BUSINESS
ECOSYSTEM TO WORK TOGETHER TO
MEET AN AMBITIOUS GOAL OF
ENABLING 40,000 SMALL BUSINESSES
TO ACCESS ONE OR MORE. MULTIPLE
LOAN PRODUCTS MADE AVAILABLE BY
BANK OR C P. C. F A THROUGH S S
B. C I TWO POINT OVER FUNDS
AGAIN. THANK YOU FOR THE
OPPORTUNITY TO PRESENT. THANK
YOU. I THINK WHAT WE'RE GOING TO
DO IS OPEN IT UP TO QUESTIONS
FROM EITHER OR COMMITTEE MEMBERS
OR OUR CHAIR AND THANK YOU TO
THE CHAIR. SO LOTS OF GREAT
INFORMATION TODAY. THANK YOU. UM
I'M VERY THANKFUL TO BECAUSE OF
MAKING THESE AUDIBLE CHANGES,
RIGHT? I MEAN, WE THAT'S MY
QUESTION TO YOU GUYS LIKE SORT
OF THE LAST TO, UM. ROUNDS WHAT?
WHAT DO YOU WHAT WOULD YOU SAY
THAT YOU GUYS HAVE LEARNED? UH
SURE. HIGH I'LL GO GET GO FIRST.
IF YOU WANT TO PULL THE MIC JUST
A LITTLE BIT. YES UM, WHATEVER
YOU LEARNED. WELL, I MEAN, I
THINK AS IT RELATES TO MAYBE
SOME SOME OF THE KEY, UM TARGETS
IN SSP CI 2.0 THAT WE HAVE TO
DEPLOY FUNDS HERE. THESE AREN'T
GRANT FUNDS. THESE ARE LENDING
FUNDS, SO THEY'RE NOT QUITE AS
DESIRABLE AND NOT ONE. NOT
EVERYONE'S RUNNING OUT THE DOOR
TO ACCESS THEM. AND IF WE DON'T
MEET OUR DEPLOYMENT TARGETS THAN
THE FEDERAL GOVERNMENT WOULD
RETAIN THOSE AND DISTRIBUTE
THOSE TWO OTHER STATES. SO ONE
THING WE'VE DONE AS IT RELATES
TO A DIFFERENCE IN OUR PROGRAM
NOW IN OUR LOAN GUARANTEE
PROGRAM NOW FROM THE PAST, AS WE
INCREASED, THE AMOUNT WILL
GUARANTEE ON A LOAN SO THAT THAT
WILL HELP US DEPLOY FUNDS
QUICKER. I WOULD SAY ALSO, WHAT
WE'VE KNOWN REALIZED OVER THE
LAST FEW YEARS AND I THINK
THROUGH THE PANDEMIC IS REALLY
TRYING TO WORK CLOSER WITH THE
MISSION DRIVEN LENDERS LIKE CDF
EYES AND MDS, AND WE'VE BEEN
REALLY TRYING TO FOCUS ON OUR
PROCESSES TO INCREASE THOSE TO
BE THAT TOUCH POINT WITH THE
UNDERSERVED COMMUNITIES AND
WE'RE HAPPY WITH THE RESULTS
TODAY. WE WON'T STOP THERE WILL
KIND OF CONTINUE TO HAVE
MEETINGS AND ROUNDTABLES AND
WEBINARS TO EXPLAIN OUR PROGRAM
IN AND INFORM THOSE LENDERS
ABOUT THE BENEFITS OF UTILIZING
OUR PROGRAM. AND I THINK WHAT?
WHAT WHAT WE ARE, YOU KNOW,
CONTINUING TO ENDEAVOR ON IS
TRYING TO CREATE A MORE
FUNCTIONAL WAY FOR OUR SMALL
BUSINESSES TO ACCESS OUR
PROGRAMS. UM BOTH OF OUR
PROGRAMS WERE SORT OF THE BACK
END THE LENDERS THE INTERFACE
WITH A SMALL BUSINESS, SO IF
THAT SMALL BUSINESS COMES TO US,
I CAN'T. WE CAN'T PROVIDE THEM
ALONE. THEY HAVE TO GO TO THE
LENDER. AND SO WE'RE TRYING TO.
WE'RE ACTUALLY LOOKING AT SUMMIT
SOLUTIONS THERE TO TRY TO MAKE
IT A MORE STREAMLINED PROCESS
FOR THEM TO ACCESS THE LENDERS,
AND THROUGH THAT, WE'LL BE ABLE
TO HANDLE VOLUME A LITTLE BIT
BETTER, AND I THINK GO INTO SOME
MORE NONTRADITIONAL COMMUNITIES
AT SCALE AND HOPEFULLY GET A
LITTLE BIT MORE INVOLVEMENT THAN
WE HAVE TODAY. SO UM, I THOSE
ARE SOME OF THE THINGS I WOULD
SAY OFF THE TOP, AND I
APPRECIATE THE FACT THAT YOU
KNOW THE WORD THAT WE'RE USING
IS TRUST RIGHT? BECAUSE I THINK
THAT OUR COMMUNITY BANKS OR
LOCAL COMMUNITY. BANKS PLAY A
BIG FACTOR ON THIS, SO I
APPRECIATE THAT. WE'RE GOING TO
BE, YOU KNOW, ADDING THEM AS
PART OF THE OF THE STAKEHOLDERS
OF THIS SO APPRECIATE THAT VERY
MUCH. SO, YES. AH ASSEMBLY
MEMBER WARD. THANK YOU FOR THIS
OVERVIEW HERE TODAY, ENCOURAGED
TO KNOW ABOUT THE WORK THAT
YOU'RE DOING SOME OF THE FEDERAL
RESOURCES AND MAKE SURE THEY'RE
GETTING OUT INTO OUR COMMUNITIES
TO OUR BUSINESSES AND THE EVEN
THE MOST. AND I'M WONDERING
THROUGH THIS SECOND ROUND,
CERTAINLY LEARNING ALL THE
LESSONS OF THE FIRST ROUND. HOW
ARE YOU MEASURING SUCCESS? WHAT
KIND OF METRICS ARE YOU LOOKING
FOR? AND FORMS OF HOW THEY'RE
HOW THE FUNDS ARE BEING USED.
I'M KIND OF CURIOUS IF YOU'VE
BEEN ABLE TO MEASURE ANYTHING
LIKE A RETURN ON INVESTMENT FOR
SOME OF THESE INFUSIONS OF
SUPPORT TO A SMALL BUSINESS,
WHAT IS THE ECONOMIC OUTPUT THAT
WE'RE GETTING IN THE FORM OF
EITHER THE PRODUCTIVITY OF THOSE
BUSINESSES OR OTHER INDIRECT
SUPPORT TO LOCAL COMMUNITIES?
MAYBE AS THE FIRST QUESTION
THERE. WELL UM, I KNOW THAT US
TREASURY IS PARTICULARLY FOCUSED
ON THAT LEVERAGE RATIO. WHAT
THEY WANT. THE GOAL IS FOR EVERY
DOLLAR FROM SSB CI THEY WANTED
TO GENUINE GENERATE $10 IN
PRIVATE EQUITY INVESTMENT, SO
THAT IS THE GOAL AND THAT IS THE
NUMBER ONE MEASUREMENT FOR
APPLICATION WITH WITH MY BANK I
BANK WAS THE LEAD APPLICATION TO
US TRADE APPLICANT TO U. S.
TREASURY. WE PARTNERED WITH THEM
FOR THAT. WE HAD TO SPELL OUT
HOW WE PLAN TO ACHIEVE THAT 1 TO
10 LEVERAGE RATIO AND HOW EACH
OF OUR PROGRAMS PERFORMED IN
1.0. AND OUR PLANS TO RAMP THAT
UP FOR 2.0. SO THAT'S THE NUMBER
ONE METRIC. THERE ARE NUMBER OF
ROBUST, UM, DATASETS DATA
METRICS THAT WE HAVE TO MEET AND
REPORT ON FOR 2.0 THE TARGETS
FOR THE CT COMMUNITY. THAT'S.
ONE LARGE TARGET THAT U. S
TREASURY HAS ESTABLISHED FOR US
TARGETS FOR VERY SMALL
BUSINESSES. THOSE ARE THE
MEASURES OF SUCCESS TO MAKE SURE
THAT WE REACH THOSE FOLKS THAT
MAY HAVE NOT BEEN ABLE TO
BENEFIT TRADITIONALLY FROM
CAPITAL ACCESS PROGRAMS HEARING
YOU SAID. THIS IS BEING ABLE TO
HELP SOME SMALL BUSINESSES THAT
OTHERWISE MAY NOT HAVE AN AVENUE
TO BE ABLE TO. QUALIFY FOR BE
ABLE TO ACCESS TO ADDITIONAL
PRIVATE CAPITAL. FANTASTIC AND
SO ARE YOU. DO YOU FEEL LIKE
WE'RE WE'VE BEEN MEETING THOSE
GOALS SO FAR. ABSOLUTELY AND 1.0
THAT THAT WASN'T A SPECIFIED
TARGET. THE SETTEE TARGET IS NEW
, BUT OUR PROGRAMS REACHED
UPWARDS OF 61% IN 1.0,
ESPECIALLY THAT SMALL LOAN LOSS
RESERVE PROGRAM. UM THEY TEND TO
SMALL BUSINESS BORROWERS AND
THAT STEADY DEMOGRAPHIC AND TO
REALLY GRAVITATE TOWARDS THAT
PROGRAM BECAUSE THAT'S OUR MICRO
LOAN MICRO DOLLAR PROGRAM, AND,
UM, ANYTHING FROM THAT SMALL
LANDSCAPE IST YOU KNOW, BUSINESS
OF ONE PERSON TO THE FOOD TRUCK
BUSINESSES. THEY LIKE THAT
PROGRAM, AND I THINK THAT THAT'S
WHY THAT PROGRAM IS SO PERFECT
FOR THOSE THOSE CT SMALL
BUSINESS DEMOGRAPHIC BUSINESS IS
FANTASTIC, AND I SAW THE OTHER
DEFAULT RATE, AT LEAST FROM THE
1.0 PROGRAM WAS INCREDIBLY LOW,
LESS THAN 1% SO DEFINITELY SOME
SUCCESS FOR THOSE BUSINESSES
THAT ARE ACCESSING THIS CAPITAL.
UM, I'M WONDERING. UH, YOU'D
MENTIONED. I THINK FROM THE
TREASURER'S OFFICE AND I SAW
SOME OF THE DATA THAT WAS HERE
THAT YOU KNOW WE'RE LOOKING AT
SORT OF THE EQUITABLE
DISTRIBUTION AND ACCESS FOR
DIFFERENT SECTORS AND MAYBE
DIFFERENT PARTS OF THE STATE OF
THIS AS WELL. AND I KNOW THIS IS
JUST DATA THAT I GOT RIGHT NOW
FROM THE CAL CAP PROGRAM, BUT,
UH, ABOUT THREE QUARTERS OF THAT
IS GOING SPECIFICALLY TO
TRANSPORTATION AND WAREHOUSING,
AND THE LION'S SHARE OF THAT IS
LOCATIONS AND BUSINESSES WITHIN
THE CENTRAL VALLEY, AND I KNOW
THAT'S JUST ONE OF THE MANY
PROGRAMS THAT WE HAVE HERE. BUT
ARE WE NOT DOING A DECENT JOB OF
REACHING OTHER AREAS OF THE
STATE OR OTHER SECTORS WITHIN
THE STATE? OR WHAT MORE COULD WE
BE DOING TO BE ABLE TO
FACILITATE MESSAGING? IN IN
LOCAL COMMUNITIES CAN EXPLAIN
WHAT YOU'RE SEEING THERE BECAUSE
WE'RE AT THE BEGINNING. AS CLINT
STATED, UM, WE'RE ONLY ONE THIRD
OF THE WAY THROUGH THE FIRST
TRANCHE, BUT WE'VE EXPENDED 60%
OF THE FUNDS, WHICH IS WE'RE
REALLY PROUD OF. AND U S
TREASURYS REALLY HAPPY WITH US
FOR BUT I CAN EXPLAIN THAT
BECAUSE WE'RE EARLY IN THE
PROGRAM, AND WE RECENTLY HAD FOR
THE KALACHAKRA PROGRAM, ANOTHER
ONE OF OUR PROGRAMS WITH THE
CALIFORNIA AIR RESOURCES BOARD
THAT PROGRAM SUNSET. IT WAS OUR
LOW EMISSIONS TRUCKING, OKAY
LOAN PROGRAM. SO THAT PROGRAM
SUNSET, A MAJOR PARTICIPATING
FINANCIAL INSTITUTION, MURPHY
BANK. THAT IS PRIMARILY SERVING
THAT FRESNO AREA. THEY CHANGED
THEIR BUSINESS MODEL FROM USING
THAT CAR PROGRAM TO USING THAT
CALIFORNIA CAPITAL ACCESS
PROGRAM FOR THOSE TRUCKING
BUSINESSES AND GREAT FOR THEM. I
DON'T WANT TO GET MORE FUNDS
INTO CENTRAL. IT'S KIND OF USES
THE THAT IN IN THE FRESNO AREA,
SO THEY WERE JUST BETTER KIND OF
AWARE AND BETTER POSITION AND
READY TO PIVOT NEWS PROGRAM. SO
IT'S AT THE BEGINNING AND WE'RE
RAMPING UP IN ALL THE OTHER
AREAS. WE'RE TRYING TO CATCH UP
WITH FRESNO. UM AND ALL THE
OTHER AREAS AND WE'RE HOPING
THAT OUR LOAN PARTICIPATION
PROGRAM WILL HELP US DO THAT.
THANK YOU. LAST QUESTION IS, DO
YOU SEE THESE PROGRAMS AT LEAST
FROM 1.0, AND MAYBE PROJECTIONS
WERE 2.0 AS BEING OVERSUBSCRIBED
? UH WHAT'S THE LEVEL LEVEL OF
NEED? THAT'S OUT THERE AS IT
RELATES TO THE CREDIT SUPPORT
ONES IN, FOR EXAMPLE, IT'S
REALLY SORT OF RACING TO
DEPLOYMENT SO WE CAN ENSURE THAT
THOSE FUNDS ARE LOCKED UP AND
AVAILABLE TO CALIFORNIA AND BE
ABLE TO RECYCLE. UM AND SO WE
CONTINUE TO SORT OF, YOU KNOW,
MAINTAIN THE ECONOMIC
ENVIRONMENT. WE'RE LENDING IS
HAPPENING. IF SOMETHING WERE TO
GO ARRIVED THERE. OBVIOUSLY THAT
COULD REDUCE OUR OUTPUT IN THE
FUTURE DEPLOYMENT. BUT
EVERYTHING TODAY HAS BEEN
RELATIVELY GOOD. WE'RE NOT IN
2021 WITH THAT SORT OF PACING,
BUT WE'RE DOING PRETTY WELL
OVERALL. UM AND SO I THINK
THERE'S PLENTY OF ACTIVITY.
WE'RE CONFIDENT GOING IN FOR OUR
SECOND TRANCHE, AND THE WAY IT
WORKS IN IN THE CHALLENGING IS
ONCE YOU INITIATE THE CONTRACT,
YOU HAVE THREE YEARS IN WHICH
YOU HAVE TO EXPAND TRANSFER,
OBLIGATE THE FUNDS AND WE'RE
GOING TO DO THAT WELL WITHIN OUR
FIRST THREE YEAR WINDOW, AND WE
EXPECT TO ACHIEVE THE THIRD
TRANCHE 12 BEFORE THAT'S DO AS
WELL. GOING BACK TO YOUR
QUESTION ABOUT GEOGRAPHIC
DIVERSITY. WE DO HAVE ANNUAL
RECORDING REQUIREMENTS. SO
LEGISLATION AND OUR ANNUAL
REPORT, WE DO SHOW OUR LOAN
GUARANTEED DISTRIBUTION ACROSS
THE STATE, AND I HAVEN'T REALLY
SEEN ANYTHING IN THERE THAT
SHOWS ANYTHING YOU WOULDN'T
EXPECT. YOU KNOW. LOS ANGELES
ORANGE COUNTY, SAN DIEGO. SOME
OF THE BIGGER COUNTIES ARE THE
BIGGER SORT OF ONE'S RECEIVING
THE FANS. AND SO IT SORT OF
REPRESENTS. THE OVERALL
GEOGRAPHIC DISTRIBUTION. HAVEN'T
REALLY NOTICED THAT OVERALL
ACROSS OUR PROGRAMS. GREAT.
THANK YOU, FOR THE RESPONSE IS
THANK YOU FOR YOUR WORK,
FACILITATING THIS TO OUR
COMMUNITIES. THANK YOU, MAN.
THANK YOU FOR THAT. VERY
INFORMAL, UM, INFORMATION YOU
HAD. YOU KNOW, I WANT TO GO
BACK, AND YOU HAD SAID EARLIER
THAT UNFORTUNATELY, THE SMALL
BUSINESSES YOU CAN'T YOU CAN'T
GET IN FRONT OF THEM, OR YOU CAN
ASSIST THEM. IT HAS TO GO
THROUGH A COMMUNITY BANK. RIGHT
MY UNDERSTANDING. UM SO HOW DO
WE KNOW THAT THESE SMALL
BUSINESSES ACTUALLY ARE BEING
INFORMED ABOUT SOME OF THESE
PROGRAMS BECAUSE I MEAN, I I'M
HEARING SOME OF THE GREAT THINGS
FOR THE FIRST TIME, AND I KNOW
QUITE A FEW SMALL BUSINESSES OUT
THERE THAT WOULD ABSOLUTELY BE
ABLE TO UTILIZE AND BENEFIT OFF
OF THIS. AND THEN MY NEXT
QUESTION IS, UM, IF THEY DON'T
QUALIFY. WHAT IS THE NEXT STEP?
LIKE, WHAT ELSE IS THERE? I
THINK WE MENTIONED A LITTLE BIT
ABOUT THAT EARLIER. BUT ARE THEY
INFORMED ABOUT OTHER THINGS? AND
THEN ONCE THEY'RE QUALIFIED
AGAIN, DO THEY COME BACK AGAIN?
AND YOU PROVIDE THAT TECHNICAL
ASSISTANCE, SO THAT WAY THEY CAN
RECEIVE THE LOANS? HOW DOES THAT
WORK? SO MAYBE I'LL GO HIGHLIGHT
ONE POINT. WE ARE LOOKING FOR
TECHNOLOGY SOLUTIONS WHERE WE
CAN CONNECT OUR SMALL BUSINESSES
DIRECTLY TO OUR LENDERS, AND
THEN REALLY? THE SMALL BUSINESS
DOESN'T NEED TO KNOW WHETHER
IT'S CAPITAL ACCESS OR LOAN
GUARANTEE OR COLLATERAL SUPPORT
THAT THAT'S REALLY FOR THE
LENDER TO DETERMINE. THEY JUST
WE WANT TO KNOW THE LENDERS THAT
HAVE THESE ENHANCEMENTS IN THEIR
PROGRAM AND THEN BE ABLE TO SORT
OF PUSH THEM OVER THERE THEIR
RISK TOLERANCE TO LEND TO
SOMEBODY WHO THEY WOULDN'T
OTHERWISE. AND SO WE'RE THAT'LL
BE ONE WAY WE CAN GO DIRECTLY TO
THE SMALL BUSINESSES IN THE
FUTURE. I ACTUALLY THINK TERRACE
SHOULD TAKE AN OPPORTUNITY TO
SPEAK BECAUSE I REALLY DO THINK
THE SMALL BUSINESS TECHNICAL
ASSISTANCE CENTERS ARE REALLY
THE CONDUIT TO OUR SMALL
BUSINESSES IN ALL THEIR NEEDS,
INCLUDING CAPITAL. THANK YOU,
CLINT. AND EXCELLENT QUESTION
ABOUT THE OUTREACH. THANK YOU.
AND IF I MAY JUST KIND OF SET
THE BACKDROP REALLY QUICKLY, UH,
THE IN TERMS OF RETURN ON
INVESTMENT HERE ON THIS
PROGRAMMING ARE SMALL BUSINESSES
PROVIDE TWO THIRDS OF ALL NET
NEW JOBS IN OUR ECONOMY. 50%
RIGHT AT, UM ALL OF THE PRIVATE
SECTOR JOBS. AND THAT'S DESPITE
THE FACT THAT 81% OF THEM OF THE
4.1 MILLION SMALL BUSINESSES IN
OUR STATE HAVE NO EMPLOYEES,
ANOTHER 17% OF THEM HAVE 1 TO 19
EMPLOYEES, SO THE VAST MAJORITY
OF OUR SMALL BUSINESSES HAVE
VERY FEW EMPLOYEES, YET THEY ARE
THE JOB CREATION ENGINE FOR THIS
DATE, SO THAT'S THE REAL
OPPORTUNITY IN THIS PROGRAM IS
TO GET THE GROWTH CAPITAL THAT
ARE SMALL BUSINESSES NEED TO
THEM. SO TO ADDRESS THE OUTREACH
COMPONENT, WE HAVE, UM, CREATED
A MESH NETWORK. AND THE REASON
FOR THE DESIGN OF THE MESH
NETWORK. IS THAT WE HAVE FOUND
MOST OF THE SMALL BUSINESSES IN
OUR COMMUNITIES ACROSS THE STATE
HAVE VERY, VERY LOOSE
CONNECTIONS TO THE SYSTEMS THAT
REALLY DRIVE INDUSTRY AND
COMMERCE. AND SO WHAT WE'RE
TRYING TO DO IS TO GATHER THOSE
IN A NETWORK THAT MAKES IT
EASIER TO INTERCEPT WITH SMALL
BUSINESSES. SO THEY FIND A
PROVIDER LITERALLY AT A
COMMUNITY BARBECUE. A CHURCH, UM
, THAT YOU KNOW THEIR LOCAL
TECHNICAL ASSISTANCE CENTER HERE
ABOUT A WEBINAR GET EXPOSED DAD
DEPARTMENT OF GENERAL SERVICES
CERTIFICATION PROGRAM. I MEAN,
YOU NAME IT. THERE ARE A TON OF
INTERSECTIONS. AND WE HAVE LOTS
OF PROGRAMMING AT THE STATE.
THEY'RE NOT NECESSARILY ALL
PULLED TOGETHER. SO WE'VE
DESIGNED THIS NETWORK TO GET HIS
MANY PLAYERS, INCLUDING CAPITAL
PROVIDERS WHO ARE ATTEMPTING TO
DO OUTREACH, WHO ARE ATTEMPTING
TO DO TECHNICAL ASSISTANCE ON
THEIR OWN AND PULLING THEM
TOGETHER IN ONE NETWORK. SO THAT
WE COULD HAVE A COMPREHENSIVE,
UNIFIED APPROACH. UNIFIED
MESSAGING AND UNIFIED DATA
COLLECTION. NO THAT'S THAT'S
FANTASTIC. I MEAN, I THINK
UNIFIED IS EXACTLY WHAT WE'RE
LOOKING AT, BECAUSE ESPECIALLY
IN YOUR IMMIGRANT COMMUNITIES
ARE LIMITED ENGLISH SPEAKING
COMMUNITIES, MANY AS ANY OF US
DO YOU BECOME BUSINESS OWNERS
AND THIS INFORMATION, ESPECIALLY
, YOU KNOW, ONCE IT'S TRANSLATED
IN DIFFERENT LANGUAGES, UM
UNLESS IT'S THIS SIMPLE LANGUAGE
RIGHT AND NOT THE MORE
PROFESSIONAL SPOKEN LANGUAGE.
THEY'RE NOT GOING TO UNDERSTAND
IT, AND IT'S GOING TO BECOME, UM
THE WRONG INFORMATION, RIGHT?
AND THEN YOU'VE GOT BUSINESSES
THAT ARE NOT EVEN GOING TO
ENGAGE OR EVEN WANT TO TAKE
ADVANTAGE. I MEAN, THIS IS AN
OPPORTUNITY FOR THEM TO GROW AS
YOU HAD MENTIONED EARLIER, AND
SO I REALLY LIKE HEARING THE
FACT THAT WE'RE TRYING TO PULL
EVERYBODY TOGETHER TO BE ABLE TO
BE UNIFIED. I ALSO SAW IN ONE OF
THESE THAT, UM THE INFORMATION
IS A TRANSLATED INTO 40
DIFFERENT LANGUAGES. I'M NOT
QUITE SURE THAT'S YES, THAT'S
OUR PROGRAM. WE HAVE MORE THAN
1000 COUNCILORS ACROSS THE STATE
THAT ARE PROVIDING SERVICES IN
40 DIFFERENT LANGUAGES. AND I'D
ALSO LIKE TO POINT OUT THAT THE
STAFF AT UM HELLO S B. A. THAT'S
GROWN SIGNIFICANTLY. WE HAVE SIX
MEMBERS OF OUR 22 MEMBER TEAM.
THAT SPEAK IN A LANGUAGE IN
ADDITION TO ENGLISH AND SO WE
ARE OURSELVES ATTEMPTING TO GO
BEYOND THE MINIMUM IN TERMS OF
MEETING LANGUAGE ACCESS NEEDS
ACROSS THE STATE. THAT'S
WONDERFUL. AND THEN I ALSO SAW
IN HERE SOMEWHERE WHERE IT'S
BROKEN DOWN AS 10. I THINK WE
MENTIONED IT A BIT WHERE IT WAS
BROKEN DOWN AS ASIAN BLACK
LATINO, UM OR WHATNOT. I'M
WONDERING IF YOU CAN ALSO GET ME
INFORMATION ON TEASING OUT THEIR
API COMMUNITY A LITTLE BIT MORE,
BECAUSE WE'RE ALWAYS LUMPED INTO
ONE AS YOU KNOW, AND I'D LIKE TO
SEE THE DIFFERENCE. YOU KNOW, IN
THE SOUTHEAST ASIAN, YOU KNOW
CHINESE COMMUNITY JAPANESE KI¾M
BECAUSE WE'RE WERE CONSIDERED A
MONOLITH, RIGHT, BUT WE'RE STILL
DIFFERENT, ESPECIALLY WHEN IT
COMES TO THINGS LIKE THIS. UM
YOU KNOW, IT JUST IT JUST SPEAKS
VOLUME WHEN YOU BREAK IT DOWN A
LITTLE BIT MORE SO THAT YOU CAN
UNDERSTAND OUR API COMMUNITY.
YES I DID A LOT OF WORK IN
FRESNO BEFORE COMING HERE, AND I
UNDERSTAND THE DISTINCTION,
ESPECIALLY FOR SOUTHEAST ASIAN
COMMUNITY MEMBERS, AND I WOULD
LIKE TO SAY THAT WE HAVE
ACCOUNTED FOR THAT IN THIS
NETWORK DESIGN. PERFECT. THANK
YOU. NO OTHER QUESTIONS. THANK
YOU. THANK YOU ALL FOR YOUR
COMMENTS. I DO HAVE SOME
QUESTIONS. UH, I'M GONNA GO
AHEAD AND START WITH WITH OUR L.
A 01 OF HIS QUESTIONS THAT I'LL
REPEAT IS WITH THE RECYCLED
FUNDS. WHAT ARE SOME OF THE
OPPORTUNITIES THERE? AND HOW ARE
THOSE BEING USED? SO UH, THE
FROM SBC 1.0. WE HAVE MAINTAINED
THOSE FUNDS TO BE CONTINUE AS
LOAN GUARANTEES WE ACTUALLY SO
WE LEVERAGE OUR PROGRAM UP TO 5
TO 1. WE DON'T WANT TO GO OVER
THAT CAP THAT GIVES THE BANKS
COMFORT THAT IF THEY DO GO INTO
DEFAULT WILL BE ABLE TO PAY
THAT. AND SO WE'VE CONTINUED
THAT AS OF SEPTEMBER 30TH. LAST
YEAR, WE WERE AT A LEVERAGE
RATIO JUST OVER FOUR. AND THAT
ALLOWED FOR OUTSTANDING LOANS OF
ABOUT $700 MILLION. SO WE WERE
REALLY COMMITTED TO KEEPING THE
FUNDS INTO THE SMALL BUSINESS
FINANCING ARENA AND FIGURING OUT
WHERE THOSE OPPORTUNITIES EXIST
AS IT RELATES TO 2.0. THOSE
FUNDS HAVE TO BE MAINTAINED
WITHIN THAT PROGRAMMATIC
STRUCTURE UNTIL SEPTEMBER. 30TH
2030 AND AT THAT POINT WE WOULD
CONTINUE THEM WITH THE SAME SORT
OF FOCUS ON ADDRESSING FINANCING
GAPS IN THE SMALL BUSINESS
COMMUNITY. FOR CAL CAP AT THE
END OF 1.0. THOSE FUNDS WENT
BACK INTO THE PROGRAM FOR TO
SUSTAIN THE PROGRAM FOR A STATE
CAL CAP PROGRAM. WE CONTINUE TO
MAKE LOANS THROUGH CAL, GET CAL
CAP AND FUND THOSE PROGRAMS AND
ACTUALLY, WHEN I SPOKE EARLIER
ABOUT HOW WE HAVE THE ABILITY TO
ADD AN ADDITIONAL 3.5% FOR
SEVERELY AFFECTED COMMUNITY AND
SOME SAID HE GROUPS THAT'S
BECAUSE OF THOSE STATE DOLLARS
THAT WENT BACK INTO THOSE, UM,
THAT BECAME THOSE DOLLARS THAT
BECAME STATE DOLLARS AND WENT
BACK INTO THAT PROGRAM, AND THAT
PROGRAM WAS MAINTAINED AND STILL
OPERATING. FROM 1.0. AYE. I WAS
JUST ASKED WHAT TYPE OF FUNDS
ARE WE TALKING ABOUT? HOW MUCH
SO WE RECEIVED 84 MILLION IN THE
ORIGINAL ALLOCATION AND I DON'T
KNOW OF THAT AMOUNT. WHAT'S
REMAINING, SO WE ALSO PULLED
THAT TOGETHER WITH PRIOR
EXISTING STATE FUNDS AND SOME
STATE FUNDS WE RECEIVED OVER THE
LAST FEW YEARS. THAT TRUST
ACCOUNT IS 123 MILLION. THAT IS
THAT IS BEING LEVERAGED UP TO
$700 MILLION IN LOANS. TODAY THE
OTHER THING THAT I WANTED TO
NOTE HERE AS IT RELATES TO
RECYCLED FUNDS. THE FEDERAL
PROGRAM HAS RESTRICTIONS, AND SO
ARE STATE FUNDS PLAY A BIG ROLE
ON STILL BEING ABLE TO DO
FINANCINGS THAT AREN'T ALLOWED
IN DRESSES. PC IPHONE, SO
THERE'S CERTAIN TYPES OF
REFINANCING BUSINESS PURCHASES
THOSE TYPES OF THINGS WHERE THE
FINANCING WOULDN'T HAPPEN IF WE
DIDN'T HAVE THE STATE FUNDS
AVAILABLE. THANK YOU, UH,
ANOTHER QUESTION. I WANT TO GO
ALL THE WAY BACK TO YOUR GRAPHIC
ON PAGE THREE RELATED TO, UM.
GETS CHARLYNE MHM, YOU START. I
DON'T WE DON'T. WE DON'T HAVE A
DON'T HAVE IT UP ON THE SCREEN
HERE, BUT, UH, IT'S TAKING THE
PERSON WHICH IS KIND OF HOW I
STARTED THE UM HEARING, WHICH IS
THAT INDIVIDUAL THAT DECIDES IN
THE STATE OF CALIFORNIA. THEY
WANT TO START SOME TYPE OF
BUSINESS, WHETHER IT'S A MICRO
BUSINESS OR LARGER BUSINESS. AND
THEY NEED TO NAVIGATE THIS. SO
MY FIRST QUESTION WHEN I LOOK AT
THIS GRAPHIC, IT SAYS, YOU KNOW,
MAYBE THEY'RE GETTING SOME
INFORMATION FROM A LOCAL CHURCH
AND NONPROFIT. SOMEBODY WHO
DIRECTS THEM. BUT WHAT IF THAT
PERSON DOESN'T HAVE THOSE
NETWORKS AND THEY'RE JUST ON
THEIR OWN AND THEIR VERY FIRST
STEP IS WELL, I THINK I'M GONNA
GO TO SMALL BUSINESS ASSOCIATION
GET ON A WEBSITE, WHEN IS THEIR
FIRST CONTACT TO ACTUALLY TALK
TO SOMEBODY? NOT THE WEBSITE,
BUT TO ACTUALLY ENGAGE WITH
SOMEBODY. SO THE GRAPHIC THAT
YOU HAVE IN FRONT OF YOU IS
SPECIFIC TO THE S S. B. C I
JOURNEY MAP. THERE IS ACTUALLY A
MUCH MORE COMPREHENSIVE AND
MALTY STEP JOURNEY MAP THAT
WOULD REALLY MAPPED THE JOURNEY
FROM BEGINNING STARTUP LEGAL
FORMATION OF A SMALL BUSINESS
THROUGH WHERE THIS MAP PICKS UP.
AND MY MIND IF THERE'S REALLY
STEPS, 12 AND THREE BEFORE YOU
EVER GET TO ACCESS TO CAPITAL,
THIS WOULD BE STEP FOUR IN A
BROADER BEGINNING TO END
ENTREPRENEURSHIP, JOURNEY MAPS,
SO. BUT I THINK YOU'RE GREATER
QUESTION IS IF I'M A PERSON THAT
WANTS TO START A BUSINESS. WHERE
DO I GO? RIGHT AND I THINK MY
QUESTION IS WHO DO I TALK TO?
NOT A WEBSITE? WHO DO I TALK TO?
BECAUSE PEOPLE GET VERY
FRUSTRATED IF THEY HAVE TO
NAVIGATE SOMETHING, AND THERE'S
NOBODY TO TALK TO. SO WHEN IS
THEIR FIRST STEP THAT THEY CAN
TALK TO SOMEBODY BEFORE? THEY'RE
GOING THROUGH FIVE STEPS AND NOT
GETTING AN ANSWER BACK? IT'S
LIKE IF WE CALL OUR I DON'T WANT
TO. I'M JUST GONNA SAY AN
ORGANIZATION AND THEY PUT YOU ON
HOLD AND THEN THEY PUT YOU ON
HOLD AND YOU CAN'T GET AN
ANSWER. WHEN DOES AN INDIVIDUAL
WHETHER IT'S A SINGLE MOM WITH
THE BABY ON HER HIP. WHEN CAN
THEY TALK TO SOMEBODY TO
ACTUALLY SAY THIS IS WHAT I'D
LIKE TO DO. AND THEN SOMEBODY
SAYS I'M GOING TO NAVIGATE WITH
YOU. IT REALLY DEPENDS ON THEIR
ACTIONS RIGHT IF THEY GET THE
IDEA AT THE REALITY IS IN THIS
DAY AND AGE FOLKS CONSULT A
SEARCH ENGINE FIRST, AND IF THEY
CONSULT A SEARCH ENGINE, WHETHER
IT'S ON THEIR PHONE AND COMPUTER
, UM THEY ARE MOST LIKELY GOING
TO BE DRIVEN TO A RESOURCE AND
THERE ARE NUMBERS OR SPD CSR
SMALL BUSINESS TECHNICAL
ASSISTANCE CENTERS. THEY ARE ALL
VERY WELL ADVERTISED AND KNOWN
IN THEIR COMMUNITIES, AND THAT'S
THE REAL REASON FOR IN
DISTRIBUTED MODEL IS BECAUSE IT
TAKES THAT TECHNICAL ASSISTANCE.
TO THE COMMUNITY, RATHER THAN
ASKING THE COMMUNITY TO REACH UP
TO THE STATE TO GET THEIR
ASSISTANCE. UM. I CAN'T SAY THAT
THERE IS A BUSINESS ADVISOR ON
EVERY CORNER AND THAT THAT MOM
WITH A BABY ON HER HIP IS GONNA
WALK PAST SOMEBODY AND SAY, HEY,
I WANT TO OPEN A SMALL BUSINESS,
BUT I CAN SAY THAT WITH MORE
THAN 1000 COUNCILORS ACROSS THE
STATE AND IN COMMUNITIES WHERE
WE KNOW THAT THERE IS
ENTREPRENEURSHIP ACTIVITY
HAPPENING, THE LIKELIHOOD THAT
THEY WILL FIND THEIR WAY. TWO
AND SPDC OR COMMUNITY BASED
ORGANIZATION IS PRETTY GOOD WORD
OF MOUTH IS OUT THERE, FOLKS.
FOLKS KNOW THAT THERE IS THERE
IS HELP AVAILABLE WE AREAS WHERE
WE COULD DO BETTER. WE SHOULD BE
PARTNERING WITH LEGISLATIVE
OFFICES, RIGHT? WE SHOULD BE
HOLDING, CONVENING WITH YOUR
CONSTITUENCIES IN YOUR
NEIGHBORHOODS AND HAVE A LITTLE
BIT MORE. ONE ON ONE THERE. I
THINK SEVERAL OF US SINNERS HAVE
GOOD RELATIONSHIPS, BUT IT WOULD
HELP US TO MAKE THAT SYSTEMATIC.
YOU DID A GREAT JOB ANSWERING TO
THAT, AND I THINK THAT'S EXACTLY
WHAT I'M TRYING TO GET AT. IT'S
LIKE THIS IS MY 10TH YEAR IN THE
CALIFORNIA STATE ASSEMBLY. I WAS
THE CHAIR OF JOBS COMMITTEE GOOD
HANDFUL OF YEAR YEARS AGO. UH
AND, UH I DON'T FEEL LIKE THOSE
CONNECTIONS ARE AS EASILY, UM,
AVAILABLE AS BEING NOTED. I KNOW
THAT WE DO GET INDIVIDUALS THAT
WILL CALL OUR OFFICE AND WE
MAYBE SOME OFFICES ACROSS THE
STATE HAVE BETTER RELATIONSHIPS.
BUT WE ARE IN OUR FACE WITH OUR
CHAMBER OF COMMERCE. OTHER
GROUPS AND THIS NAVIGATION IS
NOT AS EASILY SO THE OTHER THING
THAT I WOULD SAY IS, WE KNOW
THAT THE YOUNGER GENERATION ARE
NOT NAVIGATING THROUGH
TRADITIONAL TYPES OF AH, CHAMBER
OF COMMERCE IS THEY'RE NOT DOING
THAT. THEY'RE NOT GOING TO
GALAS. THEY'RE NOT GOING TO
NETWORKING LUNCHES THERE,
SOMETIMES RUNNING TWO BUSINESSES
AND ARE DOING THE RESTAURANT AND
MAYBE THE FOOD TRUCK. SO
LANGUAGE IS ANOTHER ISSUE. BUT
MY BIGGEST QUESTION IS IF YOU
CAN'T GET SOMEBODY LIVE ON THE
PHONE, YOU'RE GONNA GET A HANG
UP AND YOU GET A HANG UP.
SOMETIMES PEOPLE STOP THAT'S
JUST DOESN'T MEAN THEY DON'T
PURSUE IT IN OTHER WAYS, BUT
THEY MAY NOT BE PURSUING THIS,
SO I'M NOT GOING TO DWELL ON
THAT. BUT JUST THAT THAT'S
SOMETHING THAT IS VERY
CONCERNING TO ME. ESPECIALLY,
UH, AH INDIVIDUALS THAT SPEAK
SECOND LANGUAGES NOT BEING ABLE
TO NAVIGATE WEBSITES AND SO
FORTH. I'M JUST GONNA MOVE ON.
BUT I DO WANT TO ADD TO THAT
JUST TO ADD TO BE THAT I HEARD
BOTH OF MY COLLEAGUES HAVE
MENTIONED THAT AND I DO HAVE TO
SAY THANKS, MISS GRAY FOR YOU
KNOW, SOMETIMES IT'S OUR
RESPONSIBILITY TO WRITE TO MAKE
SURE THAT YOU KNOW. WHAT ELSE
CAN WE DO? WHAT ELSE CAN WE DO
IN OUR COMMUNITY? WE RELY A LOT
ON OUR DISTRICT OFFICE. ARE
FOLKS THERE, AND I KNOW THAT YOU
AND I HAVE PARTNERED UP ON A
WEBINAR THAT'S BEEN VERY, VERY
HELPFUL FOR OUR COMMUNITY. BUT
YOU KNOW, SOMETIMES YOU GOT TO
BE REMINDED US TO CONTINUE TO DO
THAT. BECAUSE WE'RE YOU KNOW,
WE'RE ALL KIND OF RUNNING 90
MILES AN HOUR UP HERE. BUT YOU
KNOW, WE NEED TO MAKE SURE THAT
YOU KNOW JUST AH, IT'S OUR
RESPONSIBILITY. BUT YOU KNOW,
KEEP US KEEP US, YOU KNOW, TUNED
UP SO THAT WE'RE MAKING SURE
THAT WE'RE GETTING THIS OUT TO
OUR DISTRICT OFFICES SO IF I
COULD JUST MAKE A COMMENT TO I'M
SORT OF SOMEWHAT NEW TO THIS
SPACE, BUT HAVING TALKED ABOUT
IT AND TRYING TO UNDERSTAND IT
FROM THIS PERSPECTIVE AT THE
MACRO LEVEL, I DO THINK WHAT'S
GOING ON ACROSS THOSE 1000
PROVIDERS IS VERY GRASSROOTS,
AND IT'S HAPPENING, AND IT'S
HAPPENING WITHIN THOSE
COMMUNITIES THAT NEED THEIR
SPECIFICITY OF WHAT'S UNIQUE TO
THOSE COMMUNITIES. BUT I DO
THINK SOMETIMES THE CHALLENGE IS
HOW DO YOU AGGREGATE THAT UP IN
A SMALL SENTENCE OR TWO THAT'S
SATISFACTORY IN A HEARING AND
THAT DOESN'T ALWAYS TRANSLATE.
BUT WE HAVE SEEN SORT OF THOSE
THINGS COME TO FRUITION AND SORT
OF THAT. TRUST ELEMENT OF
PUTTING THOSE THINGS TO WORK. I
THINK THE MESH NETWORKS THE WAY
OF STRENGTHENING ACROSS THOSE
1000 PROVIDERS AND MAKING SURE
WHERE THERE'S GAPS ARE NEEDS AND
CONSISTENCY THAT STATES ABLE TO
DO THAT, SO IT'S CERTAINLY A
BALANCE RIGHT OF LIKE, IF YOU
WANT TO HAVE THAT UNIQUE LOCAL
CULTURE AND THIS IN THE THINGS
THAT ARE HAPPENING THERE, YOU
SORT OF LOSE SOME OF THAT
CONTINUITY OF I WANT ALL ONE
MESSAGE AT THE TOP LEVEL, AND SO
IT'S A BALANCING ACT BETWEEN THE
TWO IS WHAT I'VE SEEN. ARE YOU
GUYS YOU? I'M SORRY. ARE YOUR
ORGANIZATIONS USING SOCIAL MEDIA
TO PUT OUT, YOU KNOW, NEED ALONE
, STARTING A BUSINESS ANY OF
THOSE TYPES OF GRAPHICS THAT YOU
OR PUTTING OUT YES, WE DO. I
THINK ALL OF US WERE OUT THERE
ON ALL THE SOCIAL MEDIA
PLATFORMS, YOU KNOW, TALKING
ABOUT WHAT WE'RE DOING WITH SSB
CI, UM, WE TAKE EVERY
OPPORTUNITY WE CAN TO PUT THAT
INFORMATION OUT THERE. WE DO
HAVE A PRETTY ROBUST SOCIAL
MEDIA PROGRAM AND WE WILL ASSUME
IT AS OUR PROVIDERS ARE OFFICIAL
. WE WILL BE LAUNCHING THAT.
THANK YOU. I THINK WE'RE READY
FOR YOU. OKAY. THANK YOU. THANK
YOU ALL. UM MOVING ON TO SECOND,
OKAY? OUR SECOND PANEL
CONVERSATION WILL DISCUSS THE
SBC EYES IMPACTING ON THE
ECONOMIC GROWTH AND SMALL
BUSINESSES, OUTREACH PALACES OR
IF YOU CAN COME UP MR STANFORD
LIVINGSTON, CEO, NORTHERN
CALIFORNIA FINANCIAL DEVELOPMENT
CORPORATION. BIANCA BLOOM BLOOM
QUIST. CALIFORNIA POLICY
DIRECTOR AND NORTHERN CALIFORNIA
OUTREACH DIRECTOR. SMALL
BUSINESS MAJORITY. YOU GUYS CAN
GET STARTED. MADAM CHAIR.
MEMBERS OF THE COMMITTEE. MY
NAME IS SANFORD LIVINGSTON. I AM
THE PRESIDENT, CEO OF NOR CAL,
NORTHERN CALIFORNIA FINANCIAL
DEVELOPMENT CORP AND WE'RE IN
OAKLAND. AND I'M ALSO, UH,
REPRESENTING AH, ALL SEVEN F. D.
C S AS THE VICE PRESIDENT OF THE
FTC ASSOCIATION. UM AND. IT'S
GREAT TO LISTEN TO WHAT'S
HAPPENING. I'M EXTREMELY
PASSIONATE ABOUT HOW WE'RE GOING
TO BE HELPING MANY OF THE SMALL
BUSINESSES IN CALIFORNIA. UH
FOLKS THAT HAVEN'T HAD ACCESS TO
CAPITAL. I CAME FROM A LARGE
BANK DID 20 YEARS THERE AND SOME
OF THE THINGS THAT I'VE SEEN AND
HEARD HERE. IT IS QUITE
REMARKABLE BECAUSE IT DOESN'T
GET OUT IN THE GENERAL PUBLIC.
UH DO YOU THINK ABOUT BANKS AND,
UH, I THINK I, UM, HAVE A
CONTRACT WITH THE INFRASTRUCTURE
BANK OF CALIFORNIA. I'M ONE OF
SEVEN F D. C S FINANCIAL
DEVELOPMENT CORPSE THAT ACTUALLY
WORK WITH THE STATE OF
CALIFORNIA TO BE ABLE TO OFFER.
THE STATE GUARANTEE PROGRAM. SO
A LOT OF WHAT CLINTON WAS SAYING
HE WE USE HIS GUIDANCE FROM THE
I BANK TO ACTUALLY DEPLOY THOSE
GUARANTEES AND COLLECT THE
INFORMATION VIA STEADY FORMS OF
THAT NATURE. AND TO BE QUITE
HONEST WITH YOU. WHAT WE'VE DONE
IS LOOKED AROUND LIKE I HEARD
YOU ASKING SOME GREAT QUESTIONS
ABOUT HOW WE ALL WORK TOGETHER.
WELL, I LOOK AT IT MORE LIKE A
JUSTICE LEAGUE OF SMALL BUSINESS
HELPERS. YOU KNOW, EVERYBODY HAS
THEIR THING. SO YOU KNOW, YOU
HAVE, UH, MAKE A LITTLE JOKE
HERE. I SAID WE HAVE, UM, A C
MONSTER. YOU KNOW, WE LOOK AT
THE FINE LOOKING AT JUSTICE
LEAGUE WE CALL AQUAMAN. THAT'S
HIS THING. AND SO YOU KNOW, I
DON'T ASK HIM HOW HE BREATHES
UNDERWATER AND HOW YOU TALK TO
FISH. THAT'S HIS THING. AND SO
WHEN YOU LOOK AT THE ECOSYSTEM
HERE FOR THE SMALL BUSINESS YOU
KNOW, WE OFFER THE GUARANTEE WE
HELP LENDERS LOOK AT THE
SITUATION AND BE ABLE TO SAY
HEY, THIS IS A GREAT DEAL IF WE
JUST HAD COLLATERAL YOU KNOW
THAT WE COULD PROVIDE. WE COULD
OFFER THIS PARTICULAR LOAN AND
THAT'S WHERE WE COME IN. UM AND
THERE'S SOME OTHER SPECIFICS
ABOUT BANKING. YOU SHOULD
UNDERSTAND. BUT IF YOU DON'T
OFFER THAT SYNTHETIC COLLATERAL
IN THE BEHIND SCENES WHEN
THEY'RE GOING THROUGH THEIR
COMPLIANCE AND REGULATION AND
ALL THAT STUFF AND THEY DON'T
HAVE THAT COLLATERAL. THAT DEAL
GETS AN ADDITIONAL BINK, RIGHT,
BECAUSE THEN IT LOOKS MORE RISKY
BECAUSE IT DOESN'T HAVE THE
COLLATERAL SUFFICIENT ENOUGH TO
GET THE PROPER CLASSIFICATION.
THE SYSTEM IS INSTITUTIONALIZED.
TWO IT WAS NOT MY FAULT. IT
DOESN'T HAVE THE COLLATERAL. BUT
WHEN YOU LOOK AND PULL IT BACK,
BUT I WANT US TO BE ABLE TO LOOK
AT AND ALL OF US SHOULD ALSO
HAVE THE ANALYTICS BEHIND HOW
THESE OPERATIONS WORK SO THAT WE
CAN PROVIDE, YOU KNOW
INTELLIGENTLY HOW WE'RE GOING TO
HELP THESE BUSINESSES. THE
SYSTEM. WE KNOW THE SYSTEM. BUT
HOW DO WE GET AROUND THAT TO
MAKE SURE WE OFFER THINGS THAT
MAKES SENSE FOR EVERYBODY FOR
EVERYBODY IN THE JUSTICE LEAGUE,
RIGHT? BECAUSE WE HAVE THESE
LENDERS OUT THERE AND THEY HAVE
AN ISSUE OF BEING PROFITABLE.
AND NOT HAVING ISSUES AROUND
RISK. BUT THEN WE PULL BACK. I
KNOW I'VE TALKED A LITTLE
DIFFERENTLY, BUT I'M GONNA TELL
YOU THE REAL STORY HERE. SO
Y'ALL ASKED ME TO COME UP HERE
AND TALK TO YOU. SO HERE I AM.
SO USUALLY YOU LOOK AT THE RISK.
RIGHT YOU LOOK AT THIS THING AND
YOU SAY, HMM. LET'S LOOK AT THE
ANALYTICS. HEARD THE GENTLEMAN
HERE IS CHRIS, HE SAID, WELL,
YOU KNOW, THE DEFAULT RATIO IS
LESS THAN 1. DOG GOING, RIGHT?
IT IS. THAT SHOULD TELL US
SOMETHING TO WE SHOULD ADD TO
THIS DISCUSSION IS THAT THE RISK
ISN'T WHAT IT APPEARS TO BE. BUT
NOBODY IS TALKING ABOUT THAT. SO
WE WERE THINKING ABOUT A LOT OF
THESE PROGRAMS THAT WE'VE BEEN
COOKING UP. THAT'S WHY I DON'T
LIKE TO CALL THEM. PROGRAMS LIKE
TO CALL THEM PRODUCTS BECAUSE
WHEN YOU SELL A PRODUCT OR
SOMETHING, IT IT SOLVES THE
PROBLEM. AND THE PROBLEM WE'RE
SOLVING. IT IS STEREOTYPICAL
VIEWPOINTS ABOUT PEOPLE THAT
BORROW MONEY. AND WHEN YOU LOOK
AT THE RESULTS IT DON'T ADD UP.
SO I DON'T LIKE TO TALK ABOUT IT
LIKE OH, YOU KNOW, WE GOTTA YOU
KNOW THE DISADVANTAGE? YEAH MM
HMM. IT'S THE WAY THE SYSTEM IS
SET UP, AND I LIKE WHAT YOU
FOLKS ARE DOING, BECAUSE IF WE
PULL A WHOLE OF THIS TOGETHER, I
WAS LISTENING TO OUR LAND AND
SOME OF THE THINGS THAT SHE WAS
TALKING ABOUT, AND WE DEFINITELY
PROVIDE OURSELVES MAKING
OURSELVES AVAILABLE TO MANY OF
THE THINGS THAT SHE HAS IN TERMS
OF GETTING TO SPEAK TO MANY OF
THE SMALL BUSINESSES THAT HAVE
ISSUES AROUND GAP FINANCING FOR
WORKING CAPITAL BECAUSE DGS
WHICH IS PART OF CALIFORNIA, PAY
SOMEBODY 30 OR 90 OR 120 DAYS
LATER. SO HOW DO WE OVERCOME
THAT? WE OVERCOME THAT BY
PROVIDING GUARANTEES TO THOSE
VERY UH, BUSINESSES THAT WE DO
BUSINESS WITH HERE IN CALIFORNIA
TO MAKE SURE THEY HAVE THE
CAPITAL. AND THAT'S WHAT WE DO.
SO I WANT TO MAKE SURE I GIVE
SOME CLARIFICATION. CLINT SPOKE
ABOUT THE DYNAMICS OF HOW IT
WORKS. WITH THE FEET ON THE
STREET THAT GET IT DONE. AND WE
OFFER THE GUARANTEE ACROSS. THE
BOUNDARIES OF CALIFORNIA,
SOUTHERN CALIFORNIA, NORTHERN
CALIFORNIA. ALL SEVEN OF US GET
TOGETHER AND WE TALK ABOUT BEST
PRACTICES WILL BE MEETING IN
APRIL TO TALK ABOUT HOW WE CAN
TAKE THE IDEAS THAT YOU HAVE
ABOUT THESE BUSINESSES AND GET
THAT INFORMATION TO THE LENDERS
AS WELL AS THE BORROWERS, SO
THEY UNDERSTAND HOW THESE
BUSINESSES ARE ALLOCATED TO GET
THE FUNDING TO THEM. OUT AND I
WANT TO KEEP TALKING ABOUT THIS.
SO THAT S S B C I MONEY IS
DEFINITELY IMPORTANT BECAUSE IT
GIVES A LARGER CAPACITY FOR US
TO BE TO GIVE MORE OF THESE. UH
LOANS OUT TO THE FOLKS THAT
DESERVE THEM AND THEN FIND A WAY
OF COLLECTING THE DATA TO SHOW
THE COMPLEXITY OF HOW IT'S DONE,
BUT ALSO THE POWER AND THE
RESULTS THAT ARE SECOND TO NONE.
YOU KNOW, AND WITH THE S S B, C
I MONEY WE'VE BEEN ABLE TO OFFER
EVEN MORE. YEAH, WE GO TO 5
MILLION. WHERE WAS IT? 2.5 AND
WHEN IT FIRST STARTED MAYBE 10
YEARS AGO IN THE FIRST SSP SSP
CI IT WAS ONLY HALF A MILLION
GUARANTEE. NOW WE'RE UP TO FIVE.
AND NOW WE HAVE TO, YOU KNOW.
EDUCATE MANY OF OUR USERS. WHICH
IS OUR LENDING FOLKS, WHICH YOUR
CAP WHICH YOUR, UH CREDIT UNIONS
? C D F I S REGIONAL BANKS. AND
EVEN START TO LOOK AT SOME OF
THESE OTHER BANKS. THAT SAID,
OH, IT'S TOO EXPENSIVE TO HELP
WITH THESE SMALL BUSINESSES.
WELL NO, IT'S NOT WITH THE
INNOVATION THAT'S COME ALONG
WITH A I WHEN YOU WERE TALKING
ABOUT GETTING THAT PHONE CLICK
THAT NO ONE'S PICKING UP WITH
THERE. SO MUCH INNOVATION COMING
DOWN THE PIKE THAT NOW YOU CAN
HAVE A I LANGUAGES THAT ANSWERS
THOSE QUESTIONS AND GIVES YOU
PHONE NUMBERS A CALL WHERE
PEOPLE WILL PICK UP SO I WANTED
TO MAKE SURE I, UM, SPOKE A
LITTLE BIT ABOUT THOSE THINGS.
AND IF YOU HAVE QUESTIONS ABOUT
HOW WE OPERATE, BUT I JUST
WANTED TO GIVE A LITTLE
DIFFERENT VIEWPOINTS THAT
SOMETIMES DOESN'T GET HURT.
THANK YOU. I'M VERY THANKFUL FOR
YOUR FOR YOUR, UM, STATEMENT
BECAUSE I THINK FROM FROM US YOU
KNOW? WHEN WE GET THESE PHONE
CALLS, THEY'RE NOT HERE TO SAY.
HEY YOU KNOW GOD, YOU YOU'RE
DOING A GREAT JOB. IT'S USUALLY
PEOPLE THAT ARE ANGRY UPSET,
ESPECIALLY IN OUR DISTRICT
OFFICES, RIGHT? THEY'RE UPSET
ABOUT THINGS. THEY'RE NOT, AND
WE DON'T WANT TO PASS THE BUCK.
TO ANOTHER NUMBER FOR THEM TO
CALL. SO I MEAN, SO MY QUESTION
TO YOU WOULD BE YOU KNOW WHAT
CHANGES WOULD YOU MAKE? WHAT
CHANGES DO I MAKE? WELL? SOME
NOT SO MUCH HAS CHANGED, BUT I
WOULD SAY THAT WORD IS KIND OF
FUNKY. I LIKE MEN WHAT YOU'RE
DOING, BECAUSE THERE'S SOME
GREAT THINGS THAT ARE HAPPENING
AND WE WANT TO KEEP DOING GREAT
THINGS I THINK TO HAVE UH,
COMMITTEE DISCUSSIONS TO HAVE
SMALLER GROUP DISCUSSIONS TO
DISCUSS, YOU KNOW, SUCCESS
POINTS TO SUCCESS. BEST PRACTICE
, DISCUSS BEST PRACTICES TO
FIGURE OUT IF SOMEONE IS GETTING
A PHONE CALL. UH AND THEY DON'T
UNDERSTAND HOW TO CATEGORIZE THE
HELP. ONE OF THE THINGS THAT WE
DO AT NORCAL IS WE CATEGORIZE
THE LENDERS. THERE'S SOMETHING
DOES THAT LIKE GAS STATIONS.
THERE'S SOME LENDERS THAT LIKE,
UH, YOU KNOW, RESTAURANTS.
THERE'S SOMETHING AND SO
SOMETIMES THEY GET MISMATCHED,
SO SOMEONE WILL GO TO SOMEWHERE.
WHERE THAT LENDER THAT'S NOT
THERE. THAT'S NOT THEIR STRONG
SUIT. AND BUT THERE'S NO WAY TO
TELL WHO TO GO TO BECAUSE NONE
OF THIS STUFF IS CATEGORIZED
ANYWHERE WHERE YOU CAN REACH IT.
AND I THINK THAT WHEN WE TALKED
ABOUT WE'VE GOT ENOUGH PEOPLE
LENDING. GUARANTEEING TALKING S
P D. C YOU GOT TECHNICAL
ASSISTANCE, BUT WE NEED TO TALK
TO EACH OTHER TO FIND OUT THE
BEST PRACTICES. AND HOW TO JUST
CASE IN POINT. WE DO DEALS RIGHT
AND THEN CALL 90% OF THEM COME
FROM LENDERS. SO THEY SAY,
SANFORD, THIS IS A GREAT DEAL.
IF WE CAN GET A GUARANTEE WE CAN
DO THIS THING. OKAY BOOM. WE SET
IT UP, AND WE DO THAT. HOWEVER,
WHAT IF THEY COME AND THEY SAY,
HEY, MAN, WE CAN'T HELP THEM. WE
REDIRECT THEM TO ANOTHER, UH,
ORGANIZATION THAT CAN HELP THEM
LAND. AND SO THAT'S WHAT HAPPENS
AND PEOPLE SEE THAT THEN WE NEED
TO WORK WITH EACH OTHER LIKE A
JUSTICE LEAGUE ON BEHALF OF THE
SMALL BUSINESS. AND REACH OUT
AND ANSWER EACH OTHER'S PHONE
CALL. HOW ABOUT THAT? THAT'S
GREAT BECAUSE THAT'S BUILDING
TRUST, RIGHT? YES. GOOD. ANY
OTHER QUESTIONS. CNN I HAVE A
QUESTION. I'M SORRY, MR CHEST.
SO CAN YOU CLARIFY FOR ME? ARE
YOU SO WE TALKED ABOUT HOW, UM,
PLANTS AND SHEILA AND TERRA.
THEY. THEY DON'T WORK DIRECTLY
WITH THE COMMUNITY. THEY GO
THROUGH ANOTHER ENTITY THAT
WORKS WITH THE SMALL BUSINESS.
SO ARE YOU THAT ENTITY THAT THEY
WORK WITH? YES. YES WE WILL.
WE'RE OPEN TO OUR CORE
COMPETENCY IS THE GUARANTEE
PROGRAM, BUT WE LIVE IN THE
COMMUNITY AND WE WORK WITH THE
COMMUNITY AND WE BELONG TO
VARIOUS BOARDS IN THE COMMUNITY,
AND WE LIKE TO MAKE OURSELVES
AVAILABLE IF YOU'RE HAVING, UH,
AN EVENT WHERE FOLKS NEED TO
UNDERSTAND HOW THEY CAN GET
FUNDS. AND THEY MAY NOT KNOW
THAT A GUARANTEE IS THE WAY THAT
THEY'RE GOING TO GET ACCESS TO
FUNDS WERE THERE TO SPEAK TO
THAT, SO THEY UNDERSTAND HOW WE
FIT INTO THE SPECTRUM OF HOW
FUNDS ARE GRANTED TO SMALL
BUSINESSES. SO YES, WE ARE
AVAILABLE DIRECTLY TO THE
COMMUNITY ABOUT THE PROGRAMS
THAT THEY HAVE ABSOLUTELY CAN BE
OUT THERE. PUTTING THIS ON
SOCIAL MEDIA AND SAYING THEY
HAVE THIS BUT AS A SMALL
BUSINESS, I CAN'T GO DIRECTLY TO
CLINCH SHEILA AND TARA. I HAVE
TO GO THROUGH YOU FOR YOU TO
ACCESS THEIR PROGRAMS FOR ME TO
BE ABLE TO TAKE ADVANTAGE OF IT,
AND I UNDERSTANDING THAT
CORRECTLY. THAT COULD BE ONE WAY
BUT THAT YOU'VE GOT TO REMEMBER
SO I'LL LAY IT OUT SO THAT YOU
CAN GET THE FULL SCOPE 80 TO 85
EVEN 90% OF OUR BUSINESSES COME
FROM LENDERS. HOWEVER OUR DOORS
OPEN WHERE WE DEAL WITH
BUSINESSES THAT COME DIRECTLY TO
US AND THEN ALSO IF MANY OF THE
OTHER PROVIDERS IN THIS
ECOSYSTEM ARE SPEAKING DIRECTLY
TO BORROWERS, WE SPEAK DIRECTLY
TO THEM WITH THE ALLIANCE GROUPS
AND SOME OTHER GROUPS. WE MAKE
OURSELVES AVAILABLE TO BE ABLE
TO TALK TO THEM AND LET THEM
KNOW HOW THEY SHOULD BE, UM,
PROVIDING INFORMATION. SO IF
THEY WERE TO GO TO STATE,
IRELAND, HER GROUP AND STUFF
LIKE THAT WE HAVE CHECKLISTS
ALSO THAT WE'VE GOTTEN AT TABLES
LIKE THIS. WHAT I SAID WAS
SANFORD WHEN YOU GO ON YOU MEET
WITH FOLKS DO UNDERSTAND. WE
NEED THE TAX FUNDS. WE NEED
THIS. WE NEED THAT AND WE NEED
TO UNDERSTAND ANY OF THE
BUSINESS PLAN. WE OFFER THE SAME
TYPES OF ADVICE FOR FOLKS SO
THAT WHEN THEY DO GET TO A
LENDER, THEY COULD SPEAK LINDER
LANGUAGE, WHICH IS THERE'S A
VALUE OR SOMETIMES WHEN THE
FOLKS GO IN, AND I OFFER TO YOU
70, DO YOU HAVE YOUR DEBT
SERVICE COVERAGE? YOU KNOW YOUR
DEBT SERVICE COMING BACK. WHAT
ARE YOU TALKING ABOUT? SO WHAT
WE DO IS WE SAY, HEY, THE
GUARANTEE PROGRAM HAS A DEBT
SERVICE COVERAGE BENCHMARK OF
1.25. AND THIS IS WHAT THAT
MEANS. WE ALL HAVE TO HAVE. YOU
KNOW, IT'S ALMOST LIKE FOOTBALL,
RIGHT? EVERYBODY KNOW THEY GOT
THEIR PLAY. I'M A I'M A WIDE
RECEIVER. TALK ABOUT FOOTBALL
HERE BECAUSE YOU KNOW WHAT? I
KNOW. I KNOW. I'M SORRY, BUT I
BRING IT UP BECAUSE IF THERE'S A
FUMBLE YOU DON'T SAY. WELL, I'M
NOT PICKING UP THE BALL BECAUSE
I'M A SINNER. I'M A TACKLE.
THAT'S NOT MY JOB. IF THERE'S A
FUMBLE ON THE PLAY, WE ALL HAVE
THE WE HAVE THE RESPONSIBILITY
OF HELPING GET THAT FUMBLE. AND
IF THERE'S A SMALL BUSINESS
OWNER THAT NEEDS HELP. MY JOB
MIGHT BE GUARANTEES, BUT I NEED
TO PICK UP THE BALL AND MAKE
SURE THEY GET WHERE THEY GOTTA
GO SO THEY CAN GET THE MONEY
THEY NEED FOR THEIR BUSINESS.
PERFECT. THANK YOU. AND NOW WE
HAVE MISS BLOOM QUIST. AH THANK
YOU SO MUCH. AND FOR THE RECORD,
THIS IS MY BUSINESS CARD THAT I
GIVE TO SMALL BUSINESS OWNERS,
AND IT HAS MY CELL PHONE NUMBER
ON IT. MY PERSONAL SELF, SO THAT
I PICK UP EVERY TIME I GET AN
UNKNOWN NUMBER, WHICH IS NOT
ALWAYS SO FUN, BUT OFTEN TIMES
IT IS A SMALL BUSINESS OWNER WHO
NEEDS HELP. UM THANK YOU, CHAIR
QUIRK-SILVA AND CHAIRMAN VIA
PADOVA. MEMBERS OF THE COMMITTEE
AND BIANCA BLOMQUIST AND POLICY
DIRECTOR FOR SMALL BUSINESS
MAJORITY. WE'RE A NONPROFIT
ORGANIZATION THAT ADVOCATES WITH
SMALL BUSINESS OWNERS
NATIONWIDE. AND RIGHT HERE IN
CALIFORNIA. THE AVERAGE SIZE OF
A BUSINESS IN OUR NETWORK HAS
APPROXIMATELY FOUR EMPLOYEES,
AND WHY THAT'S IMPORTANT IS
BECAUSE THESE BUSINESSES
TYPICALLY DON'T HAVE A DEDICATED
HR DEPARTMENT. THEY DON'T
TYPICALLY HAVE ACCESS TO THE
SOPHISTICATED LEGAL RESOURCES TO
HELP THEM NAVIGATE THE MYRIAD OF
OPTIONS AND HELP THEM ALSO AVOID
PREDATORY LENDING, WHICH IS A
KEY COMPONENT OF OUR WORK. I'D
LIKE TO FLAG FOR MY TESTIMONY
TODAY. I WILL BE TALKING ABOUT
THE OPPORTUNITIES PRESENTED BY
SSB CI 2.0, BUT I'D ALSO LIKE TO
TAKE THE OPPORTUNITY TO EXPLAIN
HOW SMALL BUSINESS MAJORITY IS
LEVERAGING ITS NETWORK OF
PARTNERS TO REACH CALIFORNIA'S
SMALLEST BUSINESSES. UM I WILL
BE REFERRING TO THEM AS VÆ SBS,
VERY SMALL BUSINESSES AND STEADY
FOR SOCIALLY ECONOMIC WE AND
DISADVANTAGED INDIVIDUALS. UM
THE GROUNDBREAKING STATE OF
DIVERSE SMALL BUSINESS REPORT
THAT WAS COMMISSIONED UNDER
CALAF SPA REMINDS US THAT 45% OF
SMALL BUSINESS OWNERS IN
CALIFORNIA ARE DIVERSE. THEY
SUPPORT OVER 2.5 MILLION 2.5
MILLION JOBS, AND THEY GENERATE
ALMOST $200 BILLION IN ECONOMIC
OUTPUT. HOWEVER DISPARITIES IN
CAPITAL ACCESS PERSIST,
ESPECIALLY WITH STARTUPS WITH
DIVERSE LEADERSHIP TEAMS. A
MINORITY SMALL BUSINESS OWNERS
WITH LOW CREDIT RISK. CALIFORNIA
NEEDS TO INCENTIVIZE LENDING
INSTITUTIONS AND PROMOTE
INNOVATIVE SEE A UNFORTUNATELY,
AS WE'VE ALREADY UNCOVERED TODAY
, TOO MANY ENTREPRENEURS ARE
UNAWARE OF OUR AMAZING SMALL
BUSINESS DEVELOPMENT CENTERS,
WOMEN'S BUSINESS CENTERS, SCORE
CHAPTERS AND VERY SMALL,
COMMUNITY BASED ORGANIZATIONS.
SO WE PARTNER WITH CHAMBER
ORGANIZATIONS, THE STATEWIDE
ETHNIC CHAMBERS ARE CLOSE
PARTNERS OF OUR OF OURS, BUT
ALSO THE VERY SMALL CHAMBERS
THAT USUALLY ONLY HAVE ONE
PERSON WORKING THERE. UM TO HELP
THEIR MEMBERS NAVIGATE THEIR
OPTIONS. THESE CHAMBERS TARGET
THE SMALLEST AND MOST DIVERSE
BUSINESS OWNERS IN REGIONS LIKE
THE NORTH ST SAN JOAQUIN VALLEY
IN THE INLAND EMPIRE, FOR
INSTANCE, VERNET, A BUSINESS
OWNER IN STOCKTON, TYPIFIES THE
CHALLENGES FACED BY MICRO
ENTREPRENEURS AS THE SOLE
MANAGER OF A CHILDCARE FACILITY.
SHE LACKED RESOURCES FOR
LICENSING, PAYROLL AND
CERTIFICATIONS. WE CONNECTED
VERNET WITH THE CENTRAL VALLEY
WOMEN'S ENTREPRENEURSHIP CENTER
IN MODESTO SO SHE COULD RECEIVE
ONE ON ONE TA TO ENHANCE YOUR
BUSINESS PLAN, GET CAPITAL READY
AND IDENTIFY FUNDING
OPPORTUNITIES. THEREFORE WE
RECOMMEND CALIFORNIA CONTINUE TO
BUILD ON ITS SUCCESS IS IN
DISMANTLING BARRIERS TO
ENTREPRENEURSHIP AND SBC CAPITAL
AND TA DOLLARS SHOULD ACTIVELY
SUPPORT CALIFORNIA'S MODERN AND
DIVERSE ENTREPRENEURS INITIATIVE
LIKE THE CALIFORNIA DREAM FUND.
THE COVID 19 RELIEF GRANT THE
STREET VENDORS LEGISLATION THAT
WAS PASSED LAST YEAR, THE MICRO
ENTERPRISE HOME KITCHEN
OPERATIONS. THESE ARE PROVEN
CONCEPTS FOR FOSTERING DIVERSE
ENTREPRENEURSHIP. THE NORTH CAL
SPDC NETWORK, OF WHICH I'M ON
THE ADVISORY BOARD HAILED THE
DREAM FUND IS PERHAPS THE MOST
SUCCESSFUL PROGRAM FOR BRAND NEW
ENTREPRENEURS SHOWCASING ITS
EFFECTIVENESS AND CATALYZING T A
DIVERSE TA PROVIDERS ACROSS THE
STATE. TODAY THE OVER $25
MILLION HE A GRANT PROGRAM UNDER
CALLOW SB, EMPHASIZES THE
COMPETITIVE PROCESS TO FUND
CULTURALLY SPECIFIC TA PROGRAMS
TO REACH DSPS AND STUDY
ENTREPRENEURS. SECOND WE
RECOMMEND EQUITABLE DISTRIBUTION
OF THE S S B. C I DOLLARS
THROUGH PUBLIC PRIVATE
PARTNERSHIPS. PUBLIC PRIVATE
PARTNERSHIPS WERE ESSENTIAL TO
THE SUCCESS OF THE BIGGEST SMALL
BUSINESS GRANT PROGRAM IN
HISTORY. THE $4 BILLION COVID 19
RELIEF GRANT PROGRAM, THE C R G
LEVERAGED HUNDREDS OF LOCAL AND
STATEWIDE ORGANIZATIONS,
INCLUDING SMALL BUSINESS
MAJORITY IN THE NORTH, CAL FDC.
AS WELL AS CAMEO WHO WE
PARTNERED WITH TO HOST CONVENING
. I THINK YOU WERE THERE.
STANFORD TO IMPROVE EFFICIENCY
AND LEVERAGING TECHNOLOGY TO
DECREASE COSTS INCREASED LENDING
AMONGST THE DFS TWO V SBS
POPULATIONS AND THIRD CALIFORNIA
SHOULD CONTINUE TO INNOVATE ITS
LENDING PROGRAMS TO ALIGN WITH
LEVERAGE, RACE SEAT RATIO
REQUIREMENTS AND D RISK CAPITAL,
WHICH WE'VE LEARNED SO MUCH
ABOUT TODAY. ALREADY WHAT THE
AMAZING FOLKS AT CBC FAA ARE
DOING, UM AND I BANK ARE DOING
TO, UM, REMAIN FLEXIBLE IN THEIR
LENDING PROGRAMS THROUGH OUR
CALIFORNIA'S TOTAL FUNDING
INCREASED TO 1.2 BILLION,
CREATING AN OBVIOUSLY LARGER
POOL OF MONEY FOR LENDING AND
INVESTING. BUT UNFORTUNATELY
MANY STATES DURING SBC ONE POINT
AND WEREN'T ABLE TO MEET THOSE
RATIO REQUIREMENTS, AND SOME
STATE OFFICIALS HAVE EXPRESSED
CONCERNS ABOUT MEETING THOSE
SAME LEVERAGE RATIO FOR THE
CURRENT PROGRAM. ONE SUCCESSFUL
EXAMPLE OF DE RISK CAPITAL
INCLUDES THE CALIFORNIA
REBUILDING FUND, WHICH LEVERAGED
GOVERNMENT BACKED CAPITAL AND
PRIVATE EQUITY TO CREATE A
STANDARDIZED, SPECIAL PURPOSE
VEHICLE. WE PITCHED TO
FACILITATE SMALL DOLLAR LOANS,
EXACTLY TWO OF THE SPS AND STUDY
POPULATIONS DURING COVID. WE
WORKED CLOSELY WITH CAMILO. WE
PITCHED LARGE AND SMALL CDF EYES
AND FTC SCAMPERED TO ENROLL IN
THE FUND AND UNDERWRITE THE
LOANS SECURED MILLIONS OF
DOLLARS FROM SANTA CLARA COUNTY,
AS WELL AS SAN FRANCISCO COUNTY.
ALSO TO INVEST IN THE SPV. THIS
COLLABORATION IS A GREAT EXAMPLE
OF DE RISKING CAPITAL AS WE
AWARDED ALMOST $1 BILLION IN
CAPITAL TO BE SBS AND STUDY
GROUPS DURING THIS TIME,
APPRECIATE THE LEGISLATURE'S
INITIATIVE IN CALLING THIS HEAT
AND CALLING THIS HEARING
PROVIDING AN OPPORTUNITY TO
SHOWCASE SMALL BUSINESS MAJORITY
AND ITS VAST PARTNER NETWORK
COLLABORATIVE. AND UH, I DON'T
READ THE REST, BUT I APPRECIATE
YOUR TIME AND I LOOK FORWARD TO
YOUR QUESTIONS. THANK YOU
QUESTIONS. THEN. UM. I AM GLAD
THAT SHE MENTIONED THAT YOU
REACHED SOMEONE REACHED OUT AND
STOCKTON'S RIGHT AND THEN
CONNECTED HIM TO MODESTO. HOW
HOW ARE HOW ARE YOU LOCATING
THESE SMALL BUSINESS CLIENTS? WE
DO EDUCATION, SO WE PROBABLY
ENGAGED IN ABOUT 100 WEBINARS A
YEAR, UM, REACHING AND
PRESENTATIONS IN PERSON
PRESENTATIONS WHEN APPROPRIATE.
WE PARTNER WITH THOSE CHAMBER
ORGANIZATIONS THAT I MENTIONED
ALSO, THE SPDC IS IN THE C D F.
I S BUT I THINK IS WHAT'S BEEN
ALLUDED TO IS, YOU KNOW IT'S
DIFFICULT FOR THESE
ORGANIZATIONS TO MARKET
THEMSELVES. WE ALMOST SEE
OURSELVES AS A MARKETING
EXTENSION OF THESE AMAZING TA
RESOURCE PROVIDERS, LETTING
SMALL BUSINESS OWNERS KNOW ABOUT
THE OPPORTUNITIES THAT THEY CAN
ACCESS WHEN THEY REACH OUT.
GREAT. I MEAN, WE HAVE SEVERAL
CHAMBERS AT OUR DISTRICT AND I
AM WORKED WELL WITH THEM. UM BUT
NOT EVERYONE CAN BELONG TO A
CHAMBER RIGHT? BECAUSE YOU HAVE
TO PAY FEES. SO I THINK THAT
THAT THERE'S FOLKS THAT JUST
WON'T DO THAT, AND I THINK IT'S
IMPORTANT FOR US TO CONTINUE TO
TRY TO REACH OUT TO THEM. YEAH
THANK YOU FOR BRINGING UP THAT
STORY TODAY. YEAH I'D ALSO LIKE
TO FLAG THAT. YOU KNOW, THE
CHAMBER ORGANIZATIONS AS YOU
MENTIONED ARE NOT THE ONLY ONES
WE ALSO WORK WITH. UM MERCHANT
DISTRICT ASSOCIATIONS HAVE
GOTTEN UP THAT MANY 6 A.M. B AND
I MEETINGS. UM AND THEN, OF
COURSE, I'M REALLY GOOD AT
ASKING MY YOUNGER TEAM MEMBERS
TO HELP ME WITH THIS SORT
THROUGH MEDIA, BUT WE PROVIDE
SOCIAL MEDIA PLATFORMS FOR FOLKS
TO ACCESS IF OFTEN TIMES ZOOM
CAN BECOME BIRTHS, UM,
ESPECIALLY FOR FOLKS IN THE
HISPANIC COMMUNITY, WHO ARE ALSO
ACCESSING FROM THEIR PHONE AND
NOT THEIR COMPUTER. UM SO THOSE
ARE JUST OTHER ORGANIZATIONS
THAT WE ACTIVELY REACH OUT TO
THANK YOU. THANK YOU BOTH FOR
YOUR PRESENTATION REALLY LIKED
WHAT YOU WERE SAYING RELATED TO
LENDER LANGUAGE. I THINK THAT'S
LIKE A KEY. UM NOTE THAT'S
COMING UP. HEAR FROM ME BECAUSE
AS I STARTED THE HEARING, WE'RE
TALKING DIFFERENT LANGUAGES. YOU
PROBABLY USED 20 ACRONYMS IN
YOUR PRESENTATION AND TO YOU
IT'S JUST A LANGUAGE BECAUSE YOU
LIVE AND BREATHE IT. BUT
REMEMBERING THAT THE AVERAGE
PERSON DOES NOT. THEIR GOAL IS
TO MAKE MONEY TO SUPPORT THEIR
FAMILIES. THAT'S IT. TO MAKE
ENOUGH MONEY FOR HOUSING FOR
FOOD AND TO SUPPORT THEIR FAMILY
. SO ALL OF THE ACRONYMS DON'T
MEAN ANYTHING TO THEM, WHETHER
IT'S CAMEO OR WOMEN'S BUSINESS
OR CHAMBER THAT THAT'S BUT
THEY'RE NOT GOING TO BE
COMPETITIVE IF THEY DON'T HAVE
THE LENDERS, LANGUAGE LIKE
YOU'RE SAYING IF THEY GO, NOT
EQUIPPED WITH EITHER THE
PAPERWORK THAT THEY NEED TO COME
IN READY, AND YOU ALSO MENTIONED
THE CHECKLIST, I BELIEVE YOU CAN
ASK MY TEAM I LOVE CHECKLIST.
I'M A FORMER ELEMENTARY TEACHER.
I LOVE CHECKLIST SOMETHING LIKE
THAT. IS A TOOL BECAUSE IF
SOMEBODY KNOWS WHAT THEY NEED,
IT'S STILL MAY TAKE THEM THREE
OR SIX MONTHS TO GET THOSE
MATERIALS READY. THEY'RE NOT
GOING TO DO IT OVERNIGHT, BUT
THEY KNOW THE GAME PLAN. AS YOU
SAID, FOOTBALL. THEY KNOW WHERE
THEY NEED TO GET TO. AND THAT'S
WHY I SORRY IF I APOLOGIZE IF I
WAS GETTING A LITTLE TOO
AGGRESSIVE ON WHO PICKS UP THE
PHONE, BUT BECAUSE WE HAVE TO
SPEAK THEIR LANGUAGE YEAH. AND
THAT'S THE WHOLE THING IS WE
HAVE TO KNOW WE HAVE TO MEET
THEM WHERE THEY ARE. AND IT
COULD BE, UH, SOMEBODY WHO JUST
NEEDS THE $10,000 FOR FOOD
TRUCK. MAYBE IT'S NOT 10,000
ANYMORE, BUT THAT INITIAL BUT
THEY STILL HAVE MANY STEPS TO
TAKE A CAN CHECK OFF THAT LIST
AND KNOW EXACTLY WHAT'S REQUIRED
. THEY'RE NOT GOING TO HAVE
SUCCESS IN THE LENDING. WORLD SO
THIS HAS BEEN VERY VALUABLE. I
APPRECIATE IT. I KNOW THAT YOU
ARE WORKING TIRELESSLY TO GET
THOSE SMALL BUSINESSES UP AND
OFF THE GROUND IN CALIFORNIA. WE
SEE SUCCESS IN THOSE I WILL TAKE
YOU UP HARLAN ON. I REALLY DO
THINK THAT IF EVERY ONE OF OUR
LEGISLATIVE OFFICES HAD A
PRESENTATION, AND YOU DON'T HAVE
TO MAKE IT INDIVIDUALLY, BUT
JUST A PRESENTATION. THAT THEIR
TEAMS CAN KNOW ABOUT. WE COULD
DO A SMALL BUSINESS. UM KIND OF
EXERCISE IN OUR OFFICES. THAT
WOULD GO A LONG WAY. I KNOW
THAT, UH, THERE USED TO BE
MARRIED JOE. REMIND ME HER NAME.
I KNOW SHE PASSED AWAY, BUT SHE
USED TO BRING BUSINESS AS
TOGETHER IN OUR DISTRICTS AND
TALK ABOUT SOME OF THESE, UM
THINGS THAT WERE CONCERNS EVEN
OF ACTUAL BUSINESS OWNERS.
THAT'S A STEP AWAY FROM WHAT
WE'RE TALKING ABOUT, BECAUSE
THEY'RE ALREADY OWNING A
BUSINESS. BUT I STILL THINK
THERE'S A LOT THAT WE CAN DO TO
COALESCE THIS RELATIONSHIP
BETWEEN STATE AND LOCAL BUT
MAINLY THE INDIVIDUAL WHO WANTS
TO OPEN A BUSINESS IN CALIFORNIA
, BUT I APPRECIATE YOU BEING
HERE. THANK YOU. THANK YOU. I
JUST WANT TO SAY ONE THING WE DO
JUST TO SHOW YOU THE
COLLABORATIVE EFFORT. WE HAVE
EVERY DEAL THAT WE DO WE DO A
641 TO MAKE SURE THAT THEY HAVE
ACCESS TO THE SPDC. TOOLS AND
ADVICE FOR EVERYONE THAT WE DO
AND FOR YOU. AH CALLS AND MADAM
SHERIFF. SEE HERE'S THE THING.
WE WANT TO MAKE SURE THAT YOU'RE
NOT JUST GETTING THE PHONE CALLS
OF ANGER, RIGHT? WE NEED TO FIND
A WAY OF SHARING WITH YOU
CELEBRATORY. INFORMATION OF
THINGS THAT DO WORK. BALANCE IT
OUT. TESTIMONIES WE LOVE
TESTIMONY OF THEM. YOU SHOULD BE
GETTING A QUARTERLY REPORT ABOUT
WHERE WE HAVE DISSEMINATED WHAT
WE'RE DOING THAT WAY YOU CAN SEE
AND WE CAN PULL PEOPLE TOGETHER
SO WE CAN ENHANCE. YOU KNOW
THOSE SUCCESSES AND BUILD ON
THEM. WHAT YOU THINK ABOUT YOU
BRING ABOUT I DON'T WANT TO DO
THINKING ABOUT ANGER ALL THE
TIME AND ALL THIS KIND OF STUFF
BECAUSE THAT'S WHAT YOU'RE
BRINGING ABOUT, BUT WE ARE DOING
A GREAT JOB OF MOVING THESE
FUNDS. I DON'T KNOW WHY
CALIFORNIA IS THE ONLY GROUP
THAT HAS THE KIND OF ECO SYSTEM
THAT WE HAVE, BECAUSE WE GOT ALL
OUR MONEY BACK RIGHT FOR THE
FIRST SSP CI AND WE WOULD BE
REALLY POINTING AGAIN. MANY
STATES DON'T HAVE THAT THEIR
MONEY IS EVAPORATED. SO I THINK
WE'RE DOING SOMETHING GREAT.
LET'S JUST CONTINUE TO BUILD ON
THAT AND GET YOUR HIRED. NO I
MEAN I REALLY DO, ENDING ON A
POSITIVE NOTE KNOWING THOSE
TESTIMONIES, NOT ONLY THROUGH
THE STATE, BUT IN OUR OWN
DISTRICT, EVEN IF IT'S FIVE THAT
WE CAN SAY WELL, WE WERE ABLE TO
HELP. I MEAN, I HAVE A WOMEN
OWNED BUSINESS THAT WE
CELEBRATED LAST YEAR AT BUSINESS
OF THE YEAR, ZOMBIE DONUTS AND
IN FULLERTON. A WOMAN AND HER
HER MOTHER AND HER DAUGHTER. AND
THEY I THINK CELEBRATING NINE
YEARS NOW, EVEN GOING THROUGH
THE PANDEMIC, SO I USE THEM ALL
THE TIME. I CAN'T TELL YOU IF
THEY HAD SUPPORT FROM ANY OF THE
, UH, STATE LOANS, BUT I'M SURE
THERE ARE SOME IN OUR DISTRICT,
SO US KNOWING AS LEGISLATOR,
EVEN A HANDFUL OF THOSE COULD
REALLY GIVE THE PUBLIC THE
SNAPSHOT THAT WE'RE LOOKING FOR.
AND THEN WE'LL GET SOME LITTLE
CHEERLEADING. YOU KNOW, YOU CALL
US AND WE'LL BE CALL US AND
WE'LL BE THERE FOR EACH AND
EVERY DISTRICT. YOU JUST CALL US
AND WE'LL BE THERE. ALL RIGHT,
WELL WITH THAT WE'RE GOING TO
END OUR PUBLIC OUR PANEL
TESTIMONY AND GO TO PUBLIC. UM
PUBLIC COMMENTS AND. WE'RE JUST
GONNA HAVE ONE MINUTE ON PUBLIC
TESTIMONY HERE. GOOD AFTERNOON.
GOOD INFORMATION TODAY. YOLANDA
BENSON, REPRESENTING THE
CALIFORNIA ASSOCIATION OF
FINANCIAL DEVELOPMENT
CORPORATIONS. AS YOU'VE HEARD
THERE, THE BOOTS ON THE GROUND,
ACTUALLY SPEAKING TO THE
BUSINESSES, THERE ARE SEVEN OF
THEM THAT WAS MENTIONED. THEY
ALSO ARE DON'T THEIR NAMES DON'T
ALWAYS HAVE FINANCIAL
DEVELOPMENT CORPORATION IN THEM,
SO YOU WOULDN'T KNOW. UM SO SOME
OF THEM ARE ALSO SPDC. SO YOU'RE
GETTING THE WHOLE THING WITH
SOME OF THEM. SOME ARE WOMEN'S
BUSINESS CENTERS AS WELL AS
DOING THE SMALL BUSINESS LOAN
GUARANTEE PROGRAM. THEY DO
THINGS LIKE PITAK, ENSURING THAT
THE DEFENSE CONTRACTS ARE GOING
TO SMALL BUSINESSES AS WELL. SO
YOU DO HAVE A GREAT ORGANIZATION
WITHIN THE F. D. C S BECAUSE
THEY ARE KIND OF THAT WHOLE
JUSTICE LEAGUE SYSTEM. UM BUT WE
ARE SO EXCITED BECAUSE OF WHAT'S
HAPPENING WITH THE FTC SO FAR,
JUST SANFORD ALONE. I DON'T KNOW
THAT HE SHARED THIS. HE'S
ALREADY TURNED OUT 100 MILLION
OUT OF WHAT NEEDS TO GO OUT. HE
IS WORKING HARD. THERE ARE MANY
FDC S WHO ARE WORKING JUST AS
HARD, SO WE WANT TO MAKE SURE
THAT YOU KNOW THAT IT'S ALL
ABOUT JOB CREATION. JOB
RETENTION AND ENSURING GROWTH IN
OUR ECONOMY. THANK YOU. WAIT A
MINUTE. AFTERNOON, MADAM SHARON,
MR. CHAIR PLEASE INTRODUCE
YOURSELF, SIR. MY NAME IS JIM
FRAZIER. I AM THE DIRECTOR OF
PUBLIC POLICY FOR THE ARC OF
CALIFORNIA UNITED, CEREBRAL
PALSY, CALIFORNIA AND I'M HERE
TO SPEAK TO WHAT ABOUT US? THE
42,000 PROVIDERS IN CALIFORNIA
WHO ARE EMPLOYERS WHO ARE
BUSINESS OWNERS. I HAVE NOT SEEN
ANY MENTION OF THE NONPROFIT
SECTOR IN THIS MEETING. THESE
ARE GOOD PEOPLE THAT DESERVE TO
BE SUPPORTED. THEY GO OUT AND DO
SOMETHING THAT NONE OF US ARE
WANT TO DO. THEY PROVIDE
SERVICES TO PEOPLE. WITH
DEVELOPMENTAL DISABILITIES. AND
THEY NEED YOUR HELP. WE'VE LOST
7000 PROVIDERS SINCE 2012 TO
2019. HAD NOTHING TO DO WITH THE
PANDEMIC. IT HAS TO DO WITH THE
RATE STRUCTURE THAT'S GOING OUT
THROUGH. UM AT THE STATE OF
CALIFORNIA PAYS TO THE
PROVIDERS. TO BE ABLE TO DO THIS
WORK. WE GOT ABOUT. EXPANDING
PROGRAMS CAPITAL ALL OF THESE
THINGS NOW I'M GOING ON TO GO TO
THIS WEBSITE, BUT I CAN'T FIND A
PORTAL. THAT ADAPTS TO THE
PEOPLE THAT I REPRESENT. SO I
WOULD LIKE THE COMMITTEE TO TAKE
IT UNDER CONSIDERATION ABOUT HOW
TO SUPPORT THE NONPROFIT SECTOR,
BUT ALSO THE PROVIDERS THAT DO
THE WORK FOR THE DEVELOPMENT OF
DISABLED. THANK YOU SO MUCH.
THANK YOU. NICE TO SEE YOU. AH I
SEE NO ONE ELSE WE WILL END OUR,
UH, HEARING TODAY. AND WE THANK
ALL OF YOU WHO CAME AND JOINED
US AND ALL OF OUR PANELISTS.
THANK YOU SO MUCH.