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Committee files short-term loan ordinances to create $20M emergency loan program for San Francisco small businesses
Summary
The Budget & Finance Committee filed two ordinances on April 8, 2020 to authorize a $20 million short-term line of credit and appropriate $20 million (plus $600,000) to the Treasurer to provide emergency unsecured loans to small businesses affected by COVID-19; supervisors said OEWD already launched a related $10 million package and a $4.5 million hardship program is live.
Supervisor Hillary Ronan asked the Budget & Finance Committee to file two ordinances that would allow the City to provide short-term emergency unsecured loans to small businesses with physical locations in San Francisco.
Ronan said she had worked with the Office of Economic and Workforce Development to create a $10 million small-business package, and she credited OEWD for launching the SF LEHI hardship emergency loan program with $4.5 million available immediately and another $4.5 million to be added within the month. "OEWD has done amazing work and moved almost immediately," Ronan said.
The clerk read the two items: one ordinance authorizes the treasurer to secure a short-term line of credit not to exceed $20,000,000 for emergency loans; the second appropriates $20,000,000 of loan proceeds and $600,000 from the general reserve to the Treasurer and Tax Collector to administer individual loans. Chair Feuer moved to file the items. The public comment queue produced no callers.
After a brief procedural confusion about the need for a second on a three-member committee, the committee corrected the record, rescinded the first vote and re-called the roll. The committee ultimately recorded three ayes to file the two items and forward them for Board consideration.
Committee members who spoke in support emphasized outreach to vulnerable communities and partnerships with community-based lenders and intermediaries. Supervisor Walton said he was "grateful" for collaboration with the mayor's office and asked staff to ensure prioritization across the city so funds reach the most affected neighborhoods.
The filings do not themselves authorize loans to be made; they allow for the credit line and establish appropriations for administration. The Treasurer's office and OEWD will provide implementation details, lender partnerships, and eligibility criteria as the programs move forward. The committee recorded the filing vote and forwarded the items to the full Board on April 14 for consideration.
