April 8, 2013

MINUTES FOR JOINT MEETING OF
THE COMMISSION ON THE STATUS OF WOMEN
AND THE SMALL BUSINESS COMMISSION

Monday, April 8, 2013
6 PM
City Hall, Legislative Chamber, Room 250
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102

I. CALL TO ORDER/ AGENDA CHANGES
Small Business Commission Secretary Chris Schulman called the meeting to order at 6:15 pm and conducted the roll call of Commissioners. Commission Secretary Schulman requested amending the agenda to move up La Cocina’s presentation up on the agenda due to scheduling conflicts with La Cocina’s speaker.

Small Business President Stephen Adams welcomed the Commission on the Status of Women to tonight's meeting. He recognized the contributions of Small Business Commissioners Kathleen Dooley, Monetta White, and Irene Yee Riley.

Action: Approve amended agenda.
m/s/c (O’Brien/Kirshner-Rodriguez/Unanimous)

II. COMMISSION OVERVIEW

A. Small Business Commission
Small Business Commission (SBC) President Adams reported that the Small Business Commission was created by Charter in 2003 to set business friendly policies for small businesses to flourish. The Commission is comprised of 7 Commissioners, 4 appointed by the Mayor and 3 from the Board of Supervisors, and oversees the Office of Small Business, headed by Director Regina Dick-Endrizzi. Last year, the Commission reviewed 291 small business licenses and helped over 2,800 clients. The SBC’s meetings are held the second Monday of the month in City Hall, Room 400 at 5:30 pm and on the fourth Monday of each month in City Hall, Room 440 at 2 pm.

B. Department on the Status of Women
Dr. Emily Murase, Executive Director of the Department on the Status of Women thanked Office of Small Business Director Dick-Endrizzi, Small Business Commission Secretary Schulman, and Status of Women Commission Secretary Cynthia Vasquez for their work on tonight's meeting.

Dr. Murase explained that the umbrella for the Department and Commission's work is the 1998 San Francisco CEDAW Ordinance, reflecting the principles of the UN Convention on the Elimination of All Forms of Discrimination Against Women, an international bill of rights for women. CEDAW was signed by then-President Jimmy Carter, but never ratified by the U.S. Senate. Meanwhile, over 186 UN member states have signed on to the treaty, with the notable exception of the United States. In 1998, San Francisco became the first municipality in the world to enact a local ordinance reflecting the principles of CEDAW.

She explained 3 areas of policy focus: workplace, anti-violence, and gender analysis. In 2008, the Commission and Department launched the Gender Equality Principles Initiative in partnership with Calvert Investments and Verite, a global human rights monitoring agency. This initiative was awarded the 2012 International WorkLife Balance Award by the Italian government and the 2010 Gender Equality Award by the UN Institute for Research and Training. The needs of working mothers is also a priority, including lactation accommodation and family leave policies. Policy Director Ann Lehman invited everyone to join the Department in launching the Gender Equity Challenge on Monday, April 15 at 11:30 am, at City Hall in Room 416, where San Francisco companies will be challenged to choose a model practice that exemplifies one of the Gender Equality Principles, and commit to sharing it with other companies.

Anti-violence is a large component of the Department and Commission's work. Through the collaborative work of the Justice & Courage Oversight Panel, the $3 million Violence Against Women Prevention & Intervention Grants Program, and the Family Violence Council, San Francisco has totally eliminated domestic violence homicides in 2012. A decade ago, there were about 10 domestic violence homicides per year. More recently, there have typically been 1-2 per years. In 2012, there were none. Dr. Murase reported that human trafficking is also a major problem for San Francisco which is among the FBI's top 13 child sex trafficking hubs, along with San Diego and Los Angeles. She gave the stunning statistic that a pimp who controls 4 women on the streets of San Francisco can make $730,000 tax-free annually. To address this problem, the San Francisco Collaborative Against Human Trafficking was launched in 2010.

III. JOINT CONSENT AGENDA
All matters listed hereunder constitute a Consent Agenda and are considered routine. They will be acted upon by a single roll call vote of the Commissions. There will be no separate discussion of these items unless a member of the Commissions so requests, in which event the matter shall be removed from the Consent Agenda and considered as a separate item. Members of the public may speak on each item listed on the Consent Agenda.
Action: To approve the Consent Agenda.
m/s/c (Soo/Adams/Unanimous)

A. Resolution Recognizing May 13-18 as National Small Business Week 2013

The Commissions passed the resolution encouraging entrepreneurs and small business owners, particularly women, to participate in Small Business Week events throughout the week of Mar 13-18, 2013.

IV. NEW BUSINESS

A. Starting Your Business

1. La Cocina
Executive Director Caleb Zigas explained that La Cocina arose from the Women's Foundation of California, the Women's Initiative for Self-Employment, and Arriba Juntos. La Cocina specifically works with immigrant women and women of color as they grow their businesses by providing affordable commercial kitchen space, industry-specific technical assistance, and access to market and capital opportunities. The goal is for immigrant women to transition from haphazardly organized home-based catering into sustainable legal businesses. La Cocina’s belief is that a community of natural entrepreneurs can create self-sufficient businesses to the benefit not only of themselves and their families, but their communities, and the whole city.

La Cocina is based on an incubator model with tiered admissions to create viable and formal businesses. The model encompasses 3 stages:
• Application Stage – Provide technical assistance to develop business plans, review personal and business financials, and conduct interviews with an Advisory Committee.
• Pre-Incubation/Incubation – Offer kitchen space, technical assistance on operations, and further training.
• Graduation – Ensuring economic and operational self-sufficiency.

Mr. Zigas explained that La Cocina’s participants are mainly women from immigration communities and community of colors. They serve:
• 100% Low income
• 97% Women
• 72% Immigrants from 12 countries
• 64% English as a 2nd language speakers.

Currently La Cocina has 33 Businesses in the incubator program, 55 businesses using the kitchen and 15 graduates who have moved into their own locations.

Mr. Zigas made the following policy recommendation: the new California law on legalized cottage food production (under $35,000) is little known in immigrant communities, so materials should be translated into key languages, particularly Spanish.

Status of Women Commissioner Kirshner-Rodriguez recognized La Cocina as a very special institution in San Francisco to support ethnic communities. Small Business Commissioner Ortiz-Cartagena stated that as someone who comes from a family that owned a restaurant in the Mission District, he expressed his deep appreciation for organizations like La Cocina. Status of Women President Soo thanked La Cocina for its emphasis on entrepreneurship, especially among low-income and immigrant women. Small Business President Adams acknowledged the important work of La Cocina.

Status of Women Commissioner Shorter recalled the original discussions around forming La Cocina and asked how many businesses are enrolled in the program currently. Mr. Zigas explained that there are about 33 businesses with 3-4 added each year as businesses graduate from the incubation stage.

2. Women’s Initiative: Nicole Levine, Executive Director of the San Francisco Hub
Executive Director Nicole Levine has been involved with the organization since she was a high school student. Women’s Initiative provides high-potential, low-income women with the business training, funding and ongoing support to start their own businesses and become economically self-sufficient. The agency has served over 26,000 women since 1988, 700 women of which were served in San Francisco in 2013 so far. Of all women served, 99% are low or extremely low income women, 40% are Latina, 13% have a documented disability, and 23% are over 50 years old. Some of the barriers their clients face are domestic violence, language, limited education, and poor or limited credit.

Women’s Initiative has a 3-step approach to success:
• Train – Provide technical assistance to develop a Business Action Plan, offer entrepreneurial readiness workshops, convene a 22-session business course in a participatory environment that covers personal development skills, business training, and technology skills all taught in English or Spanish.
• Fund – Provide microloans from $2,000-$50,000; offer 2:1 matched savings account for buying a home, capitalizing a business, or enrolling in further education.
• Support – Offers the SuccessLink ongoing support program, one-on-one consultations and coaching, seminars with business leaders, networking groups and events, and access to markets.

Ms. Levine explained that the most popular businesses started or expanded are in the following areas:
• Food
• Clothing/Accessories/Textiles/Home Furnishings
• Personal Services/Beauty
• Arts
• Health Services
• Cleaning Services
• Travel/Tourism

Ms. Levine reviewed indicators of success:
• 70% of graduates are still in business 5 years after graduating
• Revenues increase significantly annually after 1 year of training
• Graduates pay those who work for them almost $22 per hour
• For every $1 invested in Women’s Initiative, $30 is returned to the local economy.

Ms. Levine made the following policy recommendations so that more women can train to become entrepreneurs and open businesses.
• Expand child care.
• Expand health care.
• Offer free tax preparation assistance for Schedule C filers.
• Expand access to training, funding, and ongoing business support.
• Offer ree business licenses for micro entrepreneur with annual sales under $100K
• Revive first time leaseholder grants.

Status of Women Vice President Kirshner-Rodriguez inquired about other regions that Women's Initiative serves. Ms. Levine stated that the organization has offices in the East Bay and, as of 2012, in New York City.

Small Business Commissioner Dooley thanked Ms. Levine for her presentation and wished that she had the benefit of services when she was starting out her own business.

Small Business Commissioner Yee Riley asked about funding sources. Ms. Levine explained that the agency is supported financially by local government (through Community Development Block Grant), corporations, especially banks, and individual donors. The agency has a staff of 25 (7 in San Francisco, remaining in the East Bay, New York).

Status of Women Commissioner Shorter asked about the revenue numbers and whether increases are sustained over time. Ms. Levine explained that revenues double after the first year in business, but level off after that, indicating the need for expanded support once businesses have launched.

Status of Women President Soo reported that during the Women and the Economy Summit that was convened as part of the Asia Pacific Economic Cooperation Forum Senior Officials Meeting in July 2011, Secretary of State Hillary Clinton declared the expansion of access to capital a high priority. President Soo asked how the Commissions could facilitate this. Ms. Levine explained that Women's Initiative has partnered in new ways with banks. For example, the First Republic Bank has increased its $250,000 commitment to the Women's Initiative loan program four-fold to $1 million. By partnering with the Women's Initiative, banks are able to extend capital to low-income communities with minimized default risk. Ms. Levin also suggested that the speaker from the U.S. Small Business Administration address this issue.

3. Renaissance Center: Paula Conley, Director of Women’s Business Center
Director Paula Conley manages both the Women's Business Center and the San Francisco South of Market facility. Ms. Conley explained that Renaissance Entrepreneurship Center provides very low to moderate income women and men with access to the tools, training, and resources needed to start and grow successful small businesses.

The Renaissance Women’s Business Center provides the following services:
• Business Incubator
• Business planning classes
• Introduction and advanced classes, successful women in business series
• Industry specific training
• Financial assistance/access to capital
• Individual consulting.

Stating that the agency transforms lives through entrepreneurship, Ms. Conley reported that 10% of the general population is entrepreneurial. She added that, for the last 20 years, women have been starting businesses at a higher rate than men and tend to create home-based, micro and small businesses, largely because they seek the flexibility possible through self-employment.

Renaissance’s success includes:
• Over 500 businesses launched and grown annually
• 96% of graduates with an existing business remain in business
• 58% of clients who enter at the pre-launch stage open business within 18 months
• Over 40% of graduates create 2 or more jobs
• The gross revenue after 1 year in business full-time is $60,000.

Ms. Conley made the following policy recommendations:
• Federal, state, and local governments should offer smaller-sized contracts for bidding
• Consider transgendered people.

Status of Women President Soo thanks Ms. Conley for her informative presentation. Status of Women Vice President Kirshner-Rodriguez asked how people find out about the services of the Renaissance Center. Ms. Conley stated that outreach is primarily word-of-mouth but also by referral from economic development and social service agencies.

Status of Women Commissioner Shorter asked if Renaissance Center still focuses on moving low-income individuals off of public assistance and out of poverty. Ms. Conley explained that the offices located in East Palo Alto and the Bayview focus on these individuals.

Small Business Commissioner Ortiz-Cartagena recognized the important work of the Renaissance, particularly in the county jail, where inmates, upon release, face severe challenges in employment. Small Business President Adams lauded Renaissance Center Executive Director Sharon Miller who is highly visible in the community. He urged Commissioners to tour the South of Market facility and observe the rigorous training.

4. Licensing & Permitting: Regina Dick-Endrizi
Office of Small Business Director Dick-Endrizzi reviewed the extensive list of permits and licenses at the local, state, and federal levels required of business owners. She gave the example of opening a pizzeria in San Francisco which requires 15 different licenses at an estimated cost of $18,500 - $20,000.

Status of Women Commissioner Shorter asked about e-commerce. Director Dick-Endrizzi commented that while brick and mortar businesses are a focus; these businesses rely on on-line sales as well. Status of Women President Soo commended Director Dick-Endrizzi for reaching out to State Board of Equalization Member Betty Yee to facilitate the use of the San Francisco identification card as valid documentation for applying to state licenses and permit.

B. Financing Your Business

1. San Francisco Revolving Fund by Working Solutions: Kelly Lovelien, Director of Operations
Director of Operation Kelly Lovlien, explained that Working Solutions is a nonprofit organization that supports entrepreneurs to start or grow successful Bay Area businesses. The agency provides microloans/small business loans and long term business advising.

Programs offered:
• Small business loans (microloans) from $5,000 up to $50,000
• Five years of post-loan business coaching and advising
• Referrals to small business resources
Capital offered:
• $5,000 to $25,000 (Startup and Existing Businesses)
• $25,000 to $50,000 (Existing Businesses w/ at least 2 yrs of sales)

Loan Terms:
• Amortized over 5 years
• Fixed rate between 4% and 6%

Fees:
• $50 application fee
• 5% loan closing fee
*Additional fees may apply due to securing collateral, returned checks, late payments, and any prepayments made within 3 months of loan closing.

Ms. Lovlien explained that Working Solutions provides the following additional support services:

• Business Coaching
- Quarterly coaching sessions and bi-monthly review of your financials.
• Workshops
- Entrepreneur Insights Series
- Access to Capital Entrepreneurial Education Series
• Legal Assistance
- Semi-annual private session with 4 pro bono attorneys for 3 hours to review legal contracts, leases, and documents
• Opportunities to Promote Your Business
- Grand opening events with Mayor Edwin Lee and staff
- Annual Holiday Gift Fair in early December attended by 400+ people
- Newsletter
- Social media.

Ms. Lovlien reported that 49 loans are currently approved or funded (33% of all requested loans), amounting to roughly $1.32 million in loans to small businesses and businesses located in almost every district in San Francisco.

She further shared the impact Working Solutions has had here in the Bay Area:
• $3.6 million in loans to small businesses
• 145 loans to date
• 97.8% repayment rate
• $3.6 million in leveraged funds
• 21 businesses graduated to conventional financing
• 65 new businesses created; 80 business expansions
• 8,400 entrepreneurs educated
• 1,200 entrepreneurs received resource referrals
• 63% women entrepreneurs
• 39% minority entrepreneurs
• 63% low-income entrepreneurs.

Specific to San Francisco:
• 53 loans (37% of all loans) to date to women business owners
• $1.3 million; average loan size $24,900
• 164 jobs created
• Of these, 61% were low-income, 40% minority: African-American, Hispanic, Chinese, Japanese, Korean, Vietnamese, Russian with businesses in the following areas: clothing and consignment, fitness centers, chocolatiers, tattoo and hair studios, perfumery, wholesale manufacturing, services, restaurants, coffee shops, parking valet services.

Ms. Lovlien made the following policy recommendations:
• Additional resources to fund the Step Ahead Loan Program for individuals who do not qualify for other, larger
loans. Loan amounts are $5,000 - $10,000 and only require 6 months of bank statements.
• Invest in expanding financial management programs
• Expand Women Business Centers
• Offer additional assistance training

Ms. Lovlien explained that the barriers many of their clients face are work-life balance, the high cost of living, citizenship status, and affordable space to lease.

Small Busines Commissioners Yee Riley asked about the legal status of clients. Ms. Lovlien explained that while citizenship is not required, legal status is required. Small Business Commissioner Ortiz-Cartagena asked if the Kiva supported loan program required legal status. Ms. Lovlien responded that clients must meet the basic requirements of Working Solutions.

2. U.S. Small Business Administration (SBA) Lending Resources
Mark Quinn, District Director for Northern California, provided a context for the work. President Adams stated in his welcome that 30% of San Francisco businesses are owned by women, about the same rate nationally. Mr. Quinn added that women-owned businesses are growing more rapidly than other businesses. They are smaller, require less capital, and many do not have employees. However, these women-owned businesses will likely move into larger markets provided that they are able to scale.

Mr. Quinn explained that the SBA San Francisco District Office serves Santa Cruz to the Oregon border. In San Francisco, there were about 200 SBA loans in the guaranteed loan program amounting to $105 million. The average loan size is $500,000 and is typically used to buy commercial real estate. In San Francisco, 100 banks support the program. About 1/3 of lending went to majority or equally women-owned businesses. Nationally, this number is significantly less, at 20%. The SBA helps small businesses navigate federal contracting and certifications by providing training and advice. Federal contracting requires that 5% go to women-owned businesses. The original legislation on women and minority contracting passed in 2000. The SBA put the women-owned business contracting program in place in 2009, but the law has a narrow application and only applies to 83 North American Industry Classification System codes. The SBA teaches over 400 classes on small business and the Small Business Development Center offers one-on-one counseling.

Status of Women President Soo asked if women-owned businesses are qualitatively different from other businesses. Mr. Quinn responded that women-owned businesses typically require less capital. Status of Women Commissioner Shorter asked if women are concentrated in certain types of businesses, businesses that are not technology-focused. Mr. Quinn responded that the Small Business of the Year in recent years has been women-owned, including in manufacturing. He does not believe women are on the whole relegated to low margin, cottage-type work.

Status of Women Commissioner Kirshner-Rodriguez asked about access to public contracts. Mr. Quinn explained that the federal goal of contracting 23% to small businesses and 5% to women-owned business is very challenging to achieve unless smaller contracts are made available. Small Business President Adams stated that having SBA in San Francisco has been a tremendous benefit to the community, as a partner to the City and County of San Francisco, through classes and loans, and wide public outreach.

C. Growing Your Business

1. Administrative Services Local Business Enterprises
Zula Jones, Director of Contract Monitoring for the Surety Bond and Finance Program, introduced her colleague Beverly Popek who manages the Local Business Enterprise certification program. Ms. Jones explained that the Contract Monitoring Division implements and enforces the Chapter 12B Equal Benefits Ordinance and the Chapter 14B Local Business Enterprise Ordinance adopted by the Board of Supervisors that govern the city’s contracting process. In order to provide the highest level of public service, the Contract Monitoring Division is committed to providing expert assistance to businesses and City departments to ensure this is accomplished fairly, effectively, and efficiently.

Businesses contracting with the City and County of San Francisco may be eligible for one of three types of certifications designed to help them compete more effectively on City contracts:
? Micro
? Small
? Local

Of all women- and minority-owned certifications, the Division has certified 21% of women owned businesses and 79% of non-women owned businesses as of April 2013. The breakdown of certified women-owned businesses is as follows:
• 52% professional services
• 25% general services
• 14% construction
• 5% goods, materials and equipment
• 4% trucking and hauling

Beverly Popek explained that Proposition 209 does not restrict agencies from tracking minority and women-owned businesses.

Ms. Jones and Ms. Popek offered the following recommendations:
1. Continue to request reports and updates on Women Business Enterprises
2. Continue to demonstrate support for set asides in major City project.
3. Continue to monitor programs to level the playing field.

2. National Association of Business Women Owners San Francisco Chapter will present at a future meeting.

3. SFMade was unable to attend. However Executive Director Kate Sofis sent the following information.

The membership of SF Made is as follows:
• 48% are women-owned businesses
• 53% of these are in the Apparel Sector
• 54% of these are in the Food and Beverage Sector.

Apparel and Food and Beverage are the largest sectors within the SFMade membership.

According to Ms. Sofis, one issue that is very relevant to women in manufacturing is the lack of childcare options, both in terms of availability and affordability. In particular, there is a lack of childcare proximate to manufacturing businesses and it is not possible to put childcare facilities in buildings that are zoned a particular way. This issue affects both the woman business owner and the women employees.

V. PUBLIC COMMENT
Cathy Corcoran, President of the American Association of University Women and Policy Committee Chair Roberta Guise presented the Commissions with a cake in honor of April 9 marking Equal Pay Day. They asserted that it is important to continue to seek pay equity since, in 2013, women who work full time
still only earn about $.77 for every dollar men earn. Ms. Corcoran and Ms. Guise presented the Commissioners with The Simple Truth about the Gender Pay Gap brochure produced by the American Association of University Women as a resource.

VI. Adjourn the meeting in memory of Mabel Soo.

Action: To approve the Consent Agenda.
m/s/c (Soo/Adams/Unanimous)

Commissioners expressed their condolences to President Julie Soo who lost her mother recently. Ms. Mabel Soo led a very full life, filled with a variety of challenges that she gracefully turned into opportunities.

City Hall is accessible to persons using wheelchairs and others with disabilities. Assistive listening devices are available and meetings are
open-captioned. Agendas are available in large print. Materials in alternative formats, American Sign Language interpreters, and other accommodations will be made available upon request. Please make your request for alternative format or other accommodations to the Department on the Status of Women at 415-252-2570. Providing at least 72 hours notice prior to the meeting will help to ensure availability. The nearest BART station is Civic Center Plaza at the intersection of Market, Grove, and Hyde Streets. The MUNI Metro lines are the J, K, L, M, and N (Civic Center Station or Van Ness Avenue Station). MUNI bus lines serving the area are the 47 Van Ness, 9 San Bruno, and the 6, 7, 71 Haight/ Noriega. Accessible curbside parking is available on 1 Dr. Carlton B. Goodlett Place (San Francisco City Hall) and Grove Street. In order to assist the City’s efforts to accommodate persons with severe allergies, environmental illness, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based scented products. Please help the City to accommodate these individuals. For inquiries or requests for accommodations, please call 415- 554-6789 (V), 415-554-6799 (TTY).

Know Your Rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code)
Government’s duty is to serve the public, reaching its decision in full view of the public. Commissions, boards, councils and other agencies of the City and County exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people’s review. For more information on your rights under the Sunshine Ordinance, or to report a violation of the Ordinance, contact the Sunshine Ordinance Task Force at 415-554-7724. To obtain a free copy of the Sunshine Ordinance contact the Sunshine Ordinance Task Force, City Hall, Room 244, 1 Dr. Carlton B. Goodlett Place, San Francisco, CA 94102-4689, phone: 415-554-7724, fax: 415-554-7854. Copies of the Sunshine Ordinance can also be obtained from the San Francisco Public Library and on the City’s website at www.sfgov.org.

If any materials related to an item on this agenda have been distributed to the Commission after distribution of the agenda packet, those materials are available for public inspection at 25 Van Ness, Suite 240, San Francisco, CA 94102 during normal office hours.

Lobbyist Registration and Reporting Requirements
Individuals and entities that influence or attempt to influence local legislative or administrative action may be required by the San Francisco Lobbyist Ordinance [SF Campaign & Governmental Conduct Code § 2.100] to register and report lobbying activity. For more information about the Lobbyist Ordinance, please contact the San Francisco Ethics Commission at 25 Van Ness Avenue, Suite 220, San Francisco, CA 94102; telephone 415-252-3100; fax 415-252-3112; website: sfgov.org/ethics.