Budget panel advances plan to set up $20 million emergency loans for federal workers, but continues measures for legal review

The San Francisco Budget and Finance Committee reviewed ordinances to let the city treasurer secure a $20 million line of credit and to appropriate $20 million in short-term loan proceeds so federal employees living in the city or working at San Francisco International Airport could receive emergency, one-time, interest-free loans if a federal government shutdown occurs.

Courtney McDonald, legislative aide to Supervisor Matt Haney, told the committee the measures were intended to provide “critical relief for employees impacted by future federal government shutdowns” and cited the recent multiweek shutdown that left many workers without pay. Amanda Fried, chief of policy and communications for the Office of the Treasurer and Tax Collector, described key program details: loans would be available in $1,000 increments between $1,000 and $6,000; loans would be interest-free and one-time; applicants would verify employment and shutdown impact, submit documentation and banking information, and be interviewed in person; and borrowers would have 60 days after a shutdown ends to repay the loan.

“The treasurer would have the authorization to secure a $20,000,000 line of credit from a financial institution,” Fried said, adding the line would be sufficient to cover about 3,300 affected workers if everyone applied for the $6,000 maximum. Fried also said the treasurer has arranged for Balance, the city's financial coaching partner, to offer free one-on-one credit counseling to impacted workers.

Christina Malamut of the Budget and Legislative Analyst Office said the proposal would appropriate $20,000,000 for individual loans plus about $500,000 drawn from interest earnings on the city’s investments, noting the treasurer had not yet identified a lending institution and that approval of the ordinance is a policy matter for the Board of Supervisors.

Chair Supervisor Catherine Stephanie moved to accept an amendment changing the program authorization end date from June 30 to Dec. 31, 2019; the committee adopted the amendment "without objection." The deputy city attorney then advised the amendment is substantive, which—under committee rules—prevents the committee from passing out Item 1 that day. The chair subsequently moved, and the committee agreed without objection, to continue both items 1 and 2 to the Feb. 27 Budget and Finance Committee meeting.

During a brief public comment period, a speaker identifying themself as Ace urged the city to allocate budget resources specifically for Black residents and warned the Black population is declining in the city. Committee action on the ordinances was limited to the amendment and the continuance; no ordinance was adopted at the meeting. The items will return to the committee for further consideration on Feb. 27.