Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Small Business Finance topic
No spam. Unsubscribe anytime.
Board retroactively authorizes OEWD agreements to support small-business loan and interest buy-down programs
Summary
The Board approved a resolution authorizing the Office of Economic and Workforce Development (OEWD) to enter into agreements totaling up to $7.3 million, including a $4.2 million loan-facilitation agreement with the California Rebuilding Fund and an expected $3.1 million agreement with Kiva Microfunds for interest buy-downs.
The San Francisco Board of Supervisors unanimously adopted a resolution on April 27 authorizing the director of the Office of Economic and Workforce Development to enter into two agreements not to exceed $7.3 million in total from April 1, 2021 through June 30, 2027. The package includes an anticipated $4.2 million funding/loan agreement with the California Rebuilding Fund to facilitate origination of loans to small businesses, and one or more grant agreements expected to total $3.1 million with Kiva Microfunds to provide interest buy-down assistance for loans facilitated by the California Rebuilding Fund (item 15).
Why it matters The measures aim to expand small-business lending and reduce effective borrower costs through interest buy-downs. The agenda description characterized the agreements as tools to support small businesses’ access to capital during recovery.
Board discussion and clarifications Supervisor Aaron Peskin raised procedural concerns about retroactive authorization, noting an email the clerk circulated indicating no justification for retroactivity had been provided. City staff on the line identified as Diane Ponce Leon (OEWD) and Luke Brewer (Controller's Office) told the board they had provided an explanatory email earlier in the day. Brewer said the retroactivity listed in the agenda was intended to reflect the grant agreement's effective date (April 1) and that OEWD did not expect to enter into the agreements until after board approval; the Controller's Office had assisted on technical aspects of the loan agreement. Supervisor Peskin expressed dissatisfaction with the timing of the materials but voted to adopt the resolution.
Vote The resolution passed unanimously on roll call (11 ayes).
Speakers (quoted) - Luke Brewer, Controller's Office: "We did provide an email to the board, earlier today... the retroactivity is intended only by the date which we have on the grant agreement, which was April 1. We do not expect to, enter into these agreements until after the Board has made this approval." (paraphrased from meeting record)
Implementation If executed, the agreements will be administered by OEWD with Controller's Office support; OEWD will originate or facilitate loans through the California Rebuilding Fund and administer interest buy-downs through Kiva Microfunds.
Ending The board adopted the resolution unanimously after staff explained the retroactivity notation and said no retroactive spending was expected prior to approval.
