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Supervisors debate recapitalizing small‑business revolving loan fund, ask for stronger outreach metrics
Summary
The committee reviewed a $1 million general‑fund appropriation to recapitalize San Francisco's Small Business Revolving Loan Fund, noted Wells Fargo and repayments would supplement the pool, and asked for clearer evaluation, outreach to underserved corridors and language‑capacity plans before final approval.
San Francisco
The Budget & Finance Committee reviewed a proposal to recapitalize the city’s Small Business Revolving Loan Fund with $1,000,000 in general‑fund money supplemented by $432,500 in Wells Fargo funds and $77,000 in prior repayments. Office of Economic and Workforce Development (OEWD) staff and Working Solutions, the proposed program administrator, described loan terms, outreach plans and technical assistance services.
What was proposed
Working Solutions would administer the program under a public‑private arrangement. The recapitalization would yield roughly $1.28 million in additional loan capital after a one‑time administrative fee equal to 15 percent of the added capital (approximately $226,425) and would allow loans of up to $25,000 for start‑ups and up to $50,000 for existing businesses at 4–6 percent fixed interest rates and five‑year amortization terms. Working Solutions emphasized integrated technical assistance: about 20 hours of pre‑loan coaching and five years of post‑loan support.
Key questions from supervisors
Supervisors asked for:
- Evidence of geographic equity in loan distribution and a clear outreach plan for underserved corridors (District 11, Fillmore, Excelsior, Bayview and others). OEWD pointed to corridor managers and neighborhood partners but agreed to strengthen outreach plans.
- A timeline for an independent evaluation. Working Solutions and OEWD said they have program data but have not completed a formal independent evaluation; they committed to doing one within the calendar year.
- Language access. Working Solutions said administrative funds would be used to provide translators and partner with neighborhood organizations that have relevant language capacity.
Public testimony and fiscal notes
Local business leaders, Working Solutions borrowers and neighborhood organizations testified in favor of the fund, and noted that loans have helped small retailers and manufacturers grow and create jobs. The Budget Analyst noted that, absent a formal independent evaluation, committing general‑fund dollars is a policy decision for the Board and recommended careful oversight and performance measures.
Committee action
The item was continued to the call of the chair so staff can provide additional outreach and evaluation plans and more detailed projections of expected loan volume and job outcomes.
