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ACTUALLY, IT'S ABOUT LAUNCH SA.
WE'RE GONNA GO AHEAD AND GET STARTED HERE IN TWO MINUTES.
WELL, GOOD AFTERNOON EVERYONE.
WELCOME TO OUR ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE MEETING, THE FIRST COMMITTEE MEETING, I BELIEVE, OF THE YEAR 2020, THIS NEW DECADE.
SO THANK YOU ALL FOR BEING HERE TODAY.
UM, WE ARE, WE'RE GONNA GO AHEAD AND GET STARTED WITH THE, UH, ROLL CALL, PLEASE.
COUNCIL MEMBER SHIRLEY GONZALEZ, COUNCIL MEMBER CAVEO HARA.
PRESIDENT MADAM CHAIR, WE HAVE QUORUM.
[1. 20-1071 Approval of the minutes from the Economic and Workforce Development Committee meeting on December 3, 2019.]
YOU ALL SO MUCH FOR BEING HERE.OUR FIRST ITEM ON OUR AGENDA IS ITEM ONE, APPROVAL OF THE MINUTES FROM THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE MEETING ON DECEMBER 3RD, 2019.
IT WAS INCLUDED IN YOUR PACKETS.
WE HAVE A MOTION AND A SECOND TO APPROVE ITEM NUMBER ONE, THE MEETING MINUTES FROM DECEMBER 3RD, 2019.
[2. 19-9183 Briefing and possible action on the FY 2019 utilization of Small, Minority, Women-Owned businesses on City contracts. [Carlos J. Contreras III, Assistant City Manager; Alejandra Lopez, Director, Economic Development Department]]
UM, ITEM TWO IS BRIEFING AND POSSIBLE ACTION ON THE FY 2019 UTILIZATION OF SMALL MINORITY WOMEN-OWNED BUSINESSES ON CITY CONTRACTS.WE'RE GOING TO HAVE ALEX LOPEZ DO OUR PRESENTATION.
ALEJANDRA OUR DEPARTMENT TO SUPPORT SMALL, MINORITY AND WOMEN-OWNED BUSINESSES REGARDLESS OF THE PHASE THAT THEY'RE IN, WHETHER THEY'RE STILL DEVELOPING CONCEPTS, WHETHER THEY'RE IN A GROWTH PHASE, UM, WE HAVE SOMETHING TO HELP THEM.
AND SO I'M EXCITED TO START THE YEAR WITH, WITH, UM, THIS UPDATE.
UM, I WANNA START OUT, AND MOST OF MY INFORMATION IS GOING TO BE FOCUSED ON OUR C BETA PROGRAM, BUT TO GIVE YOU A QUICK OVERVIEW, THE PROGRAM WAS ESTABLISHED IN 1992 AFTER A DISPARITY STUDY FOUND THAT ONLY 10% OF THE CITY'S CONTRACTING DOLLARS WERE BEING SPENT WITH LOCAL MINORITY AND WOMEN-OWNED BUSINESSES, WHICH WAS A RATE FAR BELOW THEIR AVAILABILITY IN OUR AREA.
FOLLOWING THIS STUDY IN 2010, CITY COUNCIL APPROVED A SUBSTANTIAL REVISION OR FOLLOWING THE, THE DISPARITY STUDY THAT WE DID IN 2010.
CITY COUNCIL APPROVED A SUBSTANTIAL REVISION TO THE PROGRAM, AND WE INTRODUCED A LOT OF THE ELEMENTS THAT WE NOW KNOW IS PART OF THE S BETA PROGRAM, INCLUDING EVALUATION PREFERENCE POINTS AND SUBCONTRACTING GOALS.
IN ADDITION, UH, THE REVIS, THE REVISED S BETA PROGRAM, REQUIRED THE CREATION OF CERTAIN TOOLS LIKE A VENDOR REGISTRY, AND WE NOW HAVE A GOAL SETTING COMMITTEE, UM, AND ALSO MONITORING OF CONTRACTS, OUR CITY CONTRACT MANAGEMENT SYSTEM THAT TRACKS THE PAYMENTS THAT WE DO TO ALL OF OUR VENDORS.
UM, ALL OF THESE ELEMENTS WERE VITAL TO THE PROGRAM SUCCESS AT THIS.
UM, AT THAT TIME, COUNCIL, UM, WE REDID A NEW DISPARITY STUDY IN 2015, AND AFTER THAT STUDY, THERE WAS SOME ADDITIONAL REVISIONS TO THE ORDINANCE.
AND WHAT WE ARE, WE'RE USING THE SAME TOOLS, BUT WE'RE USING THEM IN EXPANDED WAYS.
UM, FOR EXAMPLE, UH, SMALL MINORITY AND WOMEN-OWNED BUSINESSES WERE NOW ALLOWED TO SELF-PERFORM SOME OF THE SUBCONTRACTING GOALS THAT WE APPLIED TO SPECIFIC, UM, SPECIFIC SOLICITATIONS.
AND THEN ALSO, UH, PREFERENCE POINTS WERE EXPANDED INTO THE INDUSTRY OF THE CONSTRUCTION INDUSTRY.
WE COULD NOW USE THESE IN THAT CATEGORY FOR, UH, MINORITY AND WOMEN-OWNED BUSINESSES WHEN B WHEN RESPONDING.
BUT BEFORE WE GET INTO THE DATA, JUST A QUICK REMINDER ABOUT THE PURPOSE OF THIS A BETA PROGRAM.
AND THAT IS THAT WE USE SMALL MINORITY WOMEN-OWNED BUSINESSES ON OUR CITY CONTRACTS.
HOW DO WE PROMOTE THEIR UTILIZATION? THIS PROGRAM AND SPECIFICALLY THE RACE AND GENDER CONSCIOUS COMPONENTS
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SEEK TO PROMOTE THE ECONOMIC INCLUSION OF WOMEN AND PEOPLE OF COLOR BY LEVERAGING OUR SPENDING TO BUILD THEIR CAPACITY TO DO THEIR WORK, AND TO GROW THEIR BUSINESSES.FROM A, UH, JUST THE TECHNICAL PIECES OF CE BETA, UM, THE, THE PROGRAM APPLIES TO CONTRACTS OVER $50,000 OR TO SOLICITATIONS FOR CONTRACTS OVER $50,000.
IT ALSO APPLIES TO FUNDING OR DEVELOPER AGREEMENTS, OR THE CITY AGREES TO FUND OVER $50,000 IN PROJECT EXPENSES, EVEN THOUGH THE CITY MAY NOT BE THE ENTITY ISSUING THE SOLICITATION.
ONCE IT'S DETERMINED THAT THE ABETA PROGRAM DOES APPLY TO A PARTICULAR SOLICITATION, IT'S THEN CATEGORIZED INTO A PARTICULAR INDUSTRY CATEGORY, SUCH AS CONSTRUCTION OR OTHER SERVICES, GOODS AND SUPPLIES, UM, BASED ON THE TYPES OF GOODS OR SERVICES THAT WE'RE GONNA BE PROCURING TO COUNT AS A SMALL MINORITY OR WOMEN-OWNED BUSINESSES.
FOR PUR BUSINESS, FOR THE PURPOSE OF THIS ABETA PROGRAM, AND IN THE DATA YOU'RE ABOUT TO SEE, A FIRM MUST BE CERTIFIED BY THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY.
AS A SMALL MINORITY OR WOMEN-OWNED BUSINESS, THE FIRM MUST ALSO BE HEADQUARTERED IN THE SAN ANTONIO METROPOLITAN STATISTICAL AREA OR HAVE A SIGNIFICANT BUSINESS PRESENCE WITHIN, UM, THIS AREA.
AND THEY CATEGORIZE, OR WE DEFINE SIGNIFICANT BUSINESS PRESENCE BY HAVING AN OFFICE WITHIN OUR METROPOLITAN AREA FOR AT LEAST ONE YEAR, AND THAT 20% OF THEIR TOTAL, TOTAL WORKFORCE OPERATE FROM THAT PARTICULAR OFFICE.
SO, WITH THIS CLARIFICATION, I'LL GO AHEAD AND MOVE ON TO THE ACTUAL DATA.
WE'RE VERY EXCITED TO SHARE THAT IN FISCAL YEAR 19, WE SPENT $253 MILLION WITH 553 SMALL MINORITY AND WOMEN-OWNED BUSINESSES, WHICH REPRESENTED 57% OF THE CONTRACT SPENDING WHEN THE ABETA ORDINANCE OR THE ABETA PROGRAM WAS APPLIED.
THIS FIGURE ACTUALLY EXCEEDS OUR FISCAL YEAR 18 NUMBERS IN WHICH WE PAID 223 MILLION TO 519 SMALL MINORITY AND WOMEN-OWNED BUSINESSES.
THAT FIGURE REPRESENTED 53% OF OUR SPENDING FROM FISCAL YEAR 18.
THIS CHART PROVIDES SOME ADDITIONAL DETAILS ON THE FIGURES I JUST REFERENCED.
THE BLACK LINES REPRESENT THE ASPIRATIONAL GOAL FOR EACH RACE OR ETHNICITY OR GENDER CATEGORY.
AND WHILE THIS ABETA PROGRAM DOES NOT ESTABLISH AN ASPIRATIONAL GOAL FOR SMALL BUSINESS UTILIZATION, THEY ARE, UM, THAT ARE NEITHER MINORITY OR WOMAN OWNED, WE STILL TRACK THEIR USE.
AND, UM, THEY ACTUALLY REPRESENT 7% OF THE UTILIZATION THAT I JUST REFERENCED THIS PAST YEAR.
THE NEXT FIVE BARS THAT YOU SEE IN THIS CHART REPRESENT THE UTILIZATION OF WOMEN, AFRICAN AMERICAN, ASIAN, HISPANIC, AND NATIVE AMERICAN OWNED BUSINESSES.
IN THREE OF THESE CATEGORIES, WE ARE MEETING OR EXCEEDING OUR ASPIRATIONAL GOAL.
IN FISCAL YEAR 19, WE DID NOT MEET OUR ASPIRATIONAL GOAL FOR WOMEN BUSINESS UTILIZATION OR NATIVE AMERICAN BUSINESS UTILIZATION.
HOWEVER, WHEN YOU AGGREGATE OUR UTILIZATION FOR ALL MINORITY AND WOMEN OWNED BUSINESSES, YOU CAN SEE THAT WE EXCEED OUR ASPIRATIONAL GOAL BY OVER 8%.
THIS CHART SHOWS THE PROGRESS THAT THIS ABETA PROGRAM HAS HAD SINCE THE MAJOR REVISIONS IN 2011, UM, WHEN WE REALLY REDEFINED THE PROGRAM, AND THEN AGAIN IN 2014 WHEN WE STARTED APPLYING TOOLS IN A RACE CONSCIOUS METHOD.
UM, AND THEN YOU HAVE THE COMPARISON TO 2019 DATA.
SO FROM 2011 TO 2019, WE'VE SEEN A 37% INCREASE IN OUR USE OF MINORITY AND WOMEN OWNED BUSINESSES.
BUT WE ALSO WANNA HIGHLIGHT AND SHOW OUR COLLECTIVE SUPPORT WITH JUST WOMEN OWNED BUSINESSES.
IF A BUSINESS IS OWNED BY A WOMAN OF COLOR, UH, THE PAYMENTS TO HER COMPANY ARE CATEGORIZED BY CARNIVAL TO RECEIVE AN AGING SEVEN, NINE, SORRY, THAT WAS MY WATCH.
THE FIRST ROW ON THE FIGURE IN THIS CHART SHOWS OUR UTILIZATION OF BUSINESSES OWNED BY WOMEN OF COLOR.
AND WHEN YOU COMBINE THAT FIGURE WITH THE PREVIOUS FIGURE, UM, IT PROVIDES A MORE COMPLETE REPRESENTATION OF OUR OVERALL UTILIZATION OF WOMEN BUSINESSES,
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WHICH FOR FISCAL YEAR 19 WAS $68 MILLION.BUT THIS ABETA PROGRAM ALSO CALLED FOR THE CREATION OF CAPA CAPACITY BUILDING INITIATIVES LIKE OUR MENTOR PROTEGE PROGRAM.
THIS PROGRAM IS ADMINISTERED IN PARTNERSHIP WITH ALAMO COLLEGES AND IS DIVIDED INTO TWO PHASES.
THE FIRST PHASE FOCUSES ON CLASSROOM LEARNING OF BASIC, BUT CRITICAL SMALL BUSINESS CONCEPTS LIKE WRITING A BUSINESS PLAN, FINANCIAL MANAGEMENT, AND HUMAN RESOURCES.
THE SECOND PHASE, DURING THE SECOND PHASE, FIRMS ARE PARTNERED WITH MENTORS THAT PROVIDE HANDS-ON, OH, SORRY, THAT'S, FIRMS ARE PARTNERED WITH MENTORS THAT PROVIDE HANDS-ON INDUSTRY KNOWLEDGE AND FEEDBACK, AND THEY WORK TOGETHER FOR TWO YEARS.
THIS PAST YEAR, WE HAD NINE FIRMS GRADUATE FROM THE PROGRAM, OF WHICH 80% WERE MINORITY OR WOMEN BUSINESSES.
SINCE WE STARTED THE PROGRAM IN 2012, WE'VE HAD 69 GRADUATES, 86 OF WHICH HAVE REPORTED INCREASES IN REVENUE AND HAVE, UH, HAVING CREATED 200 JOBS.
WE HAD A TOTAL OF 56 ACTIVE PARTICIPANTS IN THE PROGRAM DURING FISCAL YEAR.
1990 1% ARE MINORITY BUSINESS OWNERS AND 46% ARE WOMEN BUSINESS OWNERS.
AND WE ALSO HAD 28 MENTORS ENGAGED IN THE PROGRAM, WHICH SHOWS, AND IT SPEAKS TO THE COMMITMENT FROM OUR BUSINESS COMMUNITY AND THE FACT THAT THEY'RE WILLING TO INVEST THEIR TIME BACK INTO THIS PROGRAM AND MENTORING SOME OF OUR FIRMS. THE NEXT PROGRAM I WANT TO HIGHLIGHT BRIEFLY IS OUR SMALL BUSINESS DEVELOPMENT FEE WAIVER PROGRAM.
THIS PROGRAM WAS JUST ESTABLISHED LAST YEAR, AND IT MAKES CITY AND SAS FEE WAIVERS AVAILABLE TO SMALL MINORITY AND WOMEN-OWNED BUSINESSES THAT HAVE BEEN IN OPERATION FOR AT LEAST TWO YEARS AND ARE UNDERTAKING SOME SORT OF IMPROVEMENT TO THEIR ESTABLISHMENT.
THE POTENTIAL VALUE OF THE FEE WAIVER IS BASED ON CERTAIN CRITERIA.
FIRST OF ALL, THEY HAVE TO BE CERTIFIED AS A, AT A SMALL BUSINESS.
UM, THEY HAVE TO HAVE BEEN IN OPERATION FOR AT LEAST TWO YEARS, AND THEY HAVE TO BE WITHIN THE CITY LIMITS.
MINORITY AND WOMEN-OWNED BUSINESSES ARE ELIGIBLE FOR AN ADDITIONAL AMOUNT OF FEE WAIVER.
AND THEN IN ORDER TO RECEIVE THE MAXIMUM AMOUNT OF $25,000 IN FEE WAIVERS, THE BUSINESS MUST ALSO BE LOCATED IN WITHIN TARGETED GEOGRAPHIES, WHICH YOU MIGHT RECALL FROM OUR TAX ABATEMENT GUIDELINES.
WE DEVELOPED AN INCLUSIVE GROWTH AREA, UM, BASED ON POVERTY DEMOGRAPHICS WITHIN PARTICULAR ZIP CODES.
SO THAT'S THE GEOGRAPHY THAT WE ALSO USE FOR ELIGIBILITY WITH OUR SMALL BUSINESS DEVELOPMENT FEE WAIVER PROGRAM IN 2019, WE SERVED 10 BUSINESSES THROUGH THIS PROGRAM AND WAIVED A TOTAL OF $158,000 IN FEES, WHICH HELPED FACILITATE $5 MILLION IN INVESTMENT BY THESE BUSINESSES AND CREATE OVER A HUNDRED JOBS.
THE MAJORITY OF THIS BENEFIT IS STAYING WITHIN OUR INCLUSIVE GROWTH AREA AND THE SMALL BUSINESS TEAM, UM, WHICH I ACTUALLY WANNA TAKE A QUICK MINUTE TO HIGHLIGHT, AL IS OUR INTERIM ASSISTANT DIRECTOR.
SHEEP HAS MET WITH A NUMBER, IF NOT ALL OF THESE SMALL BUSINESSES THAT ARE LOOKING AT THIS FEE WAIVER PROGRAM TO REALLY UNDERSTAND WHAT THEY'RE TRYING TO DO AND HOW WE CAN HELP THEM.
AND OF COURSE, MICHAEL'S NOT TECHNICALLY ON THE SMALL BUSINESS TEAM ANYMORE, BUT HE DEFINITELY WAS VERY INSTRUMENTAL TO A LOT OF THE NUMBERS THAT I'M SHARING WITH YOU TODAY.
SO THIS TEAM, THEY, THEY DEVELOPED THIS PROGRAM.
THERE WAS A NEED IDENTIFIED AND THEY, UM, THEY REALLY DEVELOPED THE CRITERIA AND ARE MEETING WITH THESE BUSINESSES TO SEE HOW WE CAN HELP THEM IN A VERY DIFFERENT WAY FROM CE BETA, BUT STILL ACCESSING, UM, THAT RESOURCE.
THAT CONCLUDES MY PRESENTATION.
I APPRECIATE YOUR TIME AND I'M OPEN FOR QUESTIONS, UH, ALONG WITH THE REST OF THE TEAM.
THANK YOU SO MUCH, ALEX, FOR THIS PRESENTATION.
I'M GLAD I KNOW YOU BRIEFLY WENT OVER IT, UH, A WHILE AGO, A COUPLE OF MEETINGS AGO, BUT I'M GLAD WE COULD GET, UM, MORE DEEPER INTO THE DETAILS HERE.
UM, I THINK A LOT OF WORK HAS BEEN DONE, OBVIOUSLY SINCE 2011 AND EVEN FROM 2014, WE'RE SEEING, UM, THE CHANGES THAT WE'VE NEEDED TO, TO MAKE.
AND I REALLY DO APPRECIATE YOUR, UH, FOCUS ON, UM, MAKING SURE THAT WE HAVE EQUITY AND INCLUSION AS PART OF THAT.
I MEAN, TO REMIND EVERYONE, YOU WERE THE INTERIM DIRECTOR OF THE EQUITY AND INCLUSION OFFICE HERE AT THE CITY FOR A BRIEF TIME.
SO I'M GLAD THAT YOU HAVE THAT EMBEDDED IN YOURSELF AND THAT YOU'RE BRINGING THIS TO THIS, THIS AREA.
I WANNA, I GUESS GUESS START ON THE LAST, UH, THE PROGRAM DATA FOR THE FEE WAIVER, THE, UM, THE FEE WAIVER PROGRAM.
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WERE ASKING FOR THIS, AND THIS IS A RESULT OF MANY OF THE CONVERSATIONS THAT WE HAD WITH SMALL BUSINESSES BECAUSE THEY SAW THAT AS, AS NOT FAIR THAT LARGE BUSINESSES COULD HAVE FEE WAIVERS, BUT NOT THE SMALLER BUSINESSES WHO ARE REALLY THE ONES NEED IT JUST TO CONTINUE TO GO AND GROW THAT NEXT LEVEL.AND WE TALK ABOUT BUSINESS RETENTION AND EXPANSION.
THIS IS A GREAT EVEN TOOL OF EXPANSION FOR OUR SMALL BUSINESSES ON SLIDE 19.
UM, SO HOW MANY, HOW MANY BUSINESSES DID YOU MEET WITH? DID COME IN AND REQUEST MORE INFORMATION ABOUT THIS? IT SAYS 48, BUT IS IT JUST 48 OR DID WE HAVE MORE CONVERSATIONS? NO, GOOD AFTERNOON EVERYONE.
I'M THE INTERIM ASSISTANT DIRECTOR FOR SMALL BUSINESS OFFICE.
UH, WE'VE HAD A LOT OF INQUIRIES ABOUT THESE, UH, PROGRAMS ABOUT, I WOULD SAY ABOUT 90.
BUT A LOT OF THESE WERE DEVELOPERS AND SINCE OUR FOCUS WAS ON SMALL BUSINESSES ITSELF, WE ONLY MET WITH BUSINESSES THAT WERE ELIGIBLE AND THEY WERE SMALL BUSINESSES.
SO I WOULD SAY ABOUT, UH, 50, 55 BUSINESSES THAT WE MET THIS YEAR.
AND HOW ARE WE GETTING THE WORD OUT TO THESE SMALL BUSINESSES? UM, ARE WE WORKING, I'M, I'M SURE WE'RE WORKING WITH THE, THE CHAMBERS, BUT WHAT ABOUT, UM, BANKS AND LOAN AND THOSE COMMERCIAL LENDINGS OR THOSE THAT ARE, PEOPLE ARE LOOKING FOR LOANS AS WELL? WE'VE REACHED OUT TO SS B A.
WE MAKE SURE THAT WE HAVE A GOOD PARTNERSHIP WITH THEM WHERE WE CAN DISTRIBUTE A MARKETING MATERIAL.
BUT, UH, WE ALSO ADVERTISE AND MARKET IT AT OUR VENDOR EVENTS AT THE EVENTS THAT WE GO AND ATTEND FOR OTHER ENTITIES AS WELL.
SO WE'RE GOING TO BE RAMPING UP THIS YEAR A LITTLE BIT MORE THAN WHAT WE DID LAST YEAR BECAUSE WE JUST STARTED.
AND WE'LL CONTINUE WHEN WE HAVE THESE VENDOR EVENTS.
I KNOW THAT WE ARE CONTINUING TO ASK OUR OR LET OUR SMALL BUSINESSES KNOW ABOUT WHAT'S HAPPENING TOO.
I'LL ALSO ADD THAT THE NEXT STEP IN SHARING THIS INFORMATION, UM, CCHI AND I HOPEFULLY WILL ACTUALLY BE GOING OUT TO A LOT OF OUR STAKEHOLDER GROUPS, OUR CHAMBERS OF COMMERCE, ALL OF THESE DIFFERENT GROUPS THAT ARE VERY INVOLVED WITH OUR C BETA PROGRAM AND PRESENTING THIS DATA.
SO THAT GIVES US ANOTHER OPPORTUNITY TO HIGHLIGHT THIS PROGRAM.
LIKE CCHI MENTIONED LAST YEAR WAS A, IT WAS KIND OF A PILOT.
WE WERE JUST STARTING IT OUT, BUT NOW WE CAN REALLY START PROMOTING IT WITH THESE DIFFERENT GROUPS.
'CAUSE WE'RE SEEING HOW IT'S WORKING AND BEING UTILIZED AND SO WE'LL, WE'LL KNOW, UM, KIND OF THE LAY OF THE LAND OF WHERE WE MOVE GO FORWARD.
UM, MY FINAL QUESTION IS, I KNOW, I BELIEVE IT WAS, UH, ONE OF OUR, MY COLLEAGUES, UM, WAS ASKING ABOUT, 'CAUSE WE HAVE THE S BETA OR THE SMALL BUSINESS, UH, THE SMALL BUSINESS, THE SBAC YES.
BUT WE'RE ALSO LOOKING AT, AND THAT STRICTLY DEALS WITH S BETA, CORRECT.
NOT NECESSARILY THE IMPACTS, ET CETERA, OF WHAT'S, UH, SOME OF OUR POLICIES ARE GOING TO BE, UH, IMPACTED IMPACTING SMALL BUSINESSES.
SO I KNOW SHE DID SOMETHING ABOUT A SMALL BUSINESS ADVISORY COMMITTEE.
SO WHERE ARE WE ON THAT? DO YOU HAVE AN UPDATE WITH THAT? WE ACTUALLY DO, AND CCHI HAS DEVELOPED AN ENTIRE CAMPAIGN THAT WE'RE GONNA BE EXECUTING STARTING TOMORROW, I BELIEVE.
DO YOU WANNA SHARE A COUPLE OF THE HIGHLIGHTS? I DON'T KNOW IF YOU WANT US TO GO INTO THAT.
BASICALLY WHAT WE DID DURING GOVERNANCE, UM, THE IDEA WAS THAT WE GO OUT AND ACTUALLY TALK TO SOME SMALL BUSINESSES, GET THEIR FEEDBACK ABOUT WHAT IS THE BEST WAY FOR THEM TO GET ENGAGED IF THEY WANNA PARTICIPATE, IF THEY WANNA PROVIDE FEEDBACK ON POLICIES THAT THE CITY IS CONSIDERING, WOULD IT BE THROUGH A COMMISSION? WOULD IT BE THROUGH SOME OTHER TYPE OF MECHANISM? DO THEY NORMALLY COME TO BOARDS AND COMMISSION MEETINGS? IS THAT SOMETHING THAT THEY WOULD WANNA PARTICIPATE IN? SO STARTING NEXT WEEK, WE'RE ACTUALLY GONNA BE LAUNCHING A SURVEY TO ENGAGE SMALL BUSINESSES TO GET THIS FEEDBACK DIRECTLY FROM THEM.
UM, AND I BELIEVE THE PLAN IS TO COME BACK TO THIS COMMITTEE, UM, IN MARCH.
SO GOAL IS TO GO TO THE SMALL BUSINESSES.
SO THAT'S ONE THING WE WANNA DO DIFFERENT.
WE HAVE AN ENTIRE LIST OF EVENTS THAT IS HAPPENING AROUND THE CITY AND NOT JUST THE USUAL PARTICIPANTS ON THE
SO WE HOPE TO GARNER MUCH MORE FEEDBACK FROM PEOPLE.
UM, I THINK WHAT ERIC CALLED IT, ERIC WALSH CALLED IT THAT DEEP MIDDLE OR WHATEVER.
THAT'S, THAT WE'RE NOT REACHING IN, WE'RE NOT GETTING, SO, UM, SO YOU'LL REACH OUT TO LIKE, UH, THE WEST SIDE DEVELOPMENT CORPS? ABSOLUTELY.
SOUTH SIDE FIRST, ALL OF THESE ORGANIZATIONS AS WELL AS THOSE THAT AREN'T EVEN MEMBERS OF CHAMBERS, THOSE THAT ARE JUST CONNECTED TO THE CITY, UM, TO LET THEM KNOW, TO GET THIS INFORMATION OR THE SURVEY OUT TO THEM.
WELL, I LOOK FORWARD TO SEEING THAT IN MARCH AND TO SEEING WHAT OUR RESULTS ARE, BECAUSE WE NEED TO MAKE SURE THAT IT'S GREAT THAT
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WE HAVE THE SPAC, BUT WE ALSO NEED TO HAVE THAT OTHER, UM, INPUT TO THE POLICIES THAT WE'RE MOVING FORWARD.AND WITH THAT, UM, I WILL MOVE THIS OVER TO MY COLLEAGUES, COUNCILMAN BER, GABRIEL HAARD.
MY QUESTIONS SURROUND THE, THE, THE INDUSTRY, THE TOP THREE INDUSTRIES.
UH, THE, THE ASPIRATIONAL GOAL WAS MET IN THREE INDUSTRIES, ONE OF THEM WAS OTHER SERVICES, IS THAT CORRECT? YES.
CAN YOU TELL ME A LITTLE MORE ABOUT THAT CATEGORY? IS THERE A COMMON THREAD, OR HOW DIVERSE IS THAT CATEGORY? IT IS.
UM, THAT'S WHERE WE CATEGORIZE OUR EXPENSES FOR THINGS LIKE LANDSCAPING OR JANITORIAL SERVICES.
UM, SO IT'S A SERVICE RELATED CONTRACT, UM, BUT IT'S NOT NECESSARILY SOMETHING THAT'S PROFESSIONAL PER SE.
SO IT, IT IS, IT'S A, IT'S A VERY WIDE CATEGORY.
I, I HAVE A CONCERN ABOUT IT BEING WIDE AND ESPECIALLY BECAUSE IT'S, IT'S, IT SOUNDS LIKE IT'S A LITTLE BIT OF A, A CATCHALL, UM, CATEGORY IN REGARDS TO SERVICES, BUT IT'S ONE OF OUR TOP, OR AT LEAST ONE OF THE ONES THAT WE'VE HIT THE GOAL.
SO IS THERE, ARE WE DOING ANYTHING TO MAYBE BETTER CAR CATEGORIZE THOSE BUSINESSES? SO IT'S NOT NECESSARILY THE BUSINESSES PER SE, BECAUSE THE BUSINESSES WILL TELL US WHAT THEY WANT TO DO, WHAT THEY, WHAT THEY DO.
IT'S HOW WE CATEGORIZE WHAT WE'RE GONNA BUY.
UM, SO IF WE'RE CATEGORIZING SOMETHING THAT NECESS A LICENSE OF SOME SORT, SOME SORT OF PROFESSIONAL, UM, REGISTRATION OR CERTIFICATION, UM, IN SOME CASES IT FALLS INTO THE PROFESSIONAL SERVICES CATEGORY.
UM, IN A LOT OF OTHER CASES IT WILL BE OVER HERE INTO THIS OTHER SERVICES CATEGORY THOUGH.
BUT I, I'M JUST, I'M CONCERNED THAT CATEGORIZING THESE OTHER SERVICES TOGETHER, MAYBE NOT BUSINESSES, UH, THE VERNACULAR I USE SHOULD BE INDUSTRY, RIGHT? MM-HMM.
SO ARE WE, HOW ARE, I JUST WOULD LIKE TO BETTER CATEGORIZE THOSE INDUSTRIES SO THAT WE KNOW HOW WE'RE HITTING THEM IN EACH LANDSCAPING AS AN INDUSTRY JANITORIAL AS AN INDUSTRY.
IS THAT, DO YOU UNDERSTAND? YES.
I'M JUST TRYING TO THINK OF HOW WE WOULD FURTHER SUBDIVIDE THAT.
UM, FOR PURPOSES OF THE PROGRAM, WE ALREADY SUBDIVIDED INTO THESE FIVE CATEGORIES OF, OF DIFFERENT THINGS WE, WE BUY, UM, SUBDIVIDING FURTHER.
REALLY WHAT IT CREATES IS, UM, IT GETS DOWN TO A LEVEL OF SPECIFICITY WHERE YOU REALLY START LIMITING, UM, SOME AVAILABILITY.
SOMETIMES AS FAR AS YOU, YOU START GETTING VERY, VERY NARROW.
UM, AND WE STILL DO THAT FROM A GOAL SETTING PERSPECTIVE FOR A PARTICULAR SOLICITATION.
WE DO SET SPECIFIC, YOU KNOW, WHO ARE THE LANDSCAPERS THAT ARE AVAILABLE? OKAY, NOW LET'S LOOK AT THAT SPECIFICALLY.
UM, BUT OVERALL, WE TRY TO FIND SOME OF THE BEST CATEGORIES AND THE BEST WAY TO REPRESENT AND TO MEASURE HOW WE USE DIFFERENT TYPES OF BUSINESSES AND BASED ON WHAT WE BUY.
MY CONCERN REALLY IS AROUND REPORTING.
I CAN SEE THAT FUNCTIONALLY, YOU, YOU DON'T WANNA CATEGORIZE IT, YOU DON'T WANT TO, UM, YOU SAID, UM, YOU DON'T WANT TO HINDER, I GUESS THE, THE SERVICES THAT YOU'RE PROVIDING, BUT AS FAR AS REPORTING IT BACK TO US AND SAYING THAT THE TOP, ONE OF THE TOP THREE INDUSTRIES IS OTHER SERVICES, IT, IT, IT JUST, I WONDER HOW IT SEEMS BROAD, RIGHT? IT'S, IT'S A LITTLE TOO BROAD FOR, FOR ME TO REALLY UNDERSTAND.
CAN BREAK THAT DOWN? YEAH, WE CAN BREAK IT DOWN.
WE CAN DEFINITELY PROVIDE SOME INFORMATION OF LIKE, WHAT ARE SOME OF THE BIGGEST CONTRACTS THAT WE AWARD AND WHAT'S THE UTILIZATION LEVEL IN SOME OF THOSE CATEGORIES.
THANK YOU COUNCILOR FOR COURAGE.
I HEARD YOUR REFERENCE EARLY, YOUR REFERENCE EARLIER.
UH, BOTH OF YOU I THINK REFERRED TO SMALL BUSINESS, UH, AND SS B A AND I'M WONDERING, YOU KNOW, ARE THE SERVICES THAT WE PROVIDE EITHER OVERLAPPING OR IN COLLABORATION WITH OR, OR FILLING A GAP THAT SS B A OFFERS? SO I WOULD SAY THEY FILL A GAP BECAUSE THEY, THERE'S, THEY'RE VERY DIFFERENT.
UM, THE MAJORITY OF WHAT WE DO REALLY IS LEVERAGING OUR PURCHASING, WHICH S B A DOES, AND THE FEDERAL GOVERNMENT DOES THROUGH THEIR OWN PROGRAMS. BUT REALLY THAT'S A LOT OF OUR FOCUS OF WHAT WE DO.
SOME OF THESE OTHER PROGRAMS, LIKE OUR MENTOR PROTEGE PROGRAM, RIGHT? THE FEDERAL, UM, THE FEDERAL GOVERNMENT ALSO HAS THAT TYPE OF PROGRAM FOR PARTICULAR TYPES OF CONTRACTING.
UM, A LOT OF THE, A LOT OF THE BUSINESSES THAT WE WORK WITH, THEY DON'T, THEY'RE NOT NECESSARILY FEDERAL CONTRACTORS, SO THEY WOULDN'T BE ABLE TO AVAIL THEMSELVES OF SOME OF THOSE PROGRAMS. SO I WOULD SAY WE'RE MORE FILLING A GAP WITH SOME OF THESE BUSINESSES.
AND SO, UM, ONE OF THE, UH, I THINK COUNCILWOMAN VERAN ASKED SOME OF THE QUESTIONS ABOUT THE FEE WAIVER PROGRAM, UM, BUT
[00:25:01]
HAVE, HAVE YOU ALL LOOKED INTO LIKE A NEIGHBORHOOD EMPOWERMENT PROGRAM OR A NEIGHBORHOOD EMPOWERMENT ZONE THAT GIVES TAX RELIEF TO SMALL BUSINESSES IF THEY'RE IN AN AREA? I THINK THE FIRST REF, AS FAR AS OUR DEPARTMENT IS CONCERNED, THE FIRST REFERENCE THAT WE'VE HAD TO SOME CONCEPT LIKE THAT IS SOME OF THE WORK THAT WE'RE DOING THROUGH OPPORTUNITY ZONES AND THE WORK THAT WE'RE DOING RIGHT NOW FOR THAT PLANNED DEVELOPMENT, SOMETHING WE'RE EXPLORING, SOMETHING THAT'S KIND OF BEEN THROWN OUT, BUT WE HAVEN'T NECESSARILY RESEARCHED TO SUBSTANTIALLY.SO I, IT'S MY UNDERSTANDING THAT THERE ARE CITIES AROUND THE COUNTRY, I THINK ESPECIALLY IN, I MEAN IN TEXAS, DALLAS I THINK WAS ONE THAT WE HAD RESEARCHED, UM, THAT HAD NEIGHBORHOOD EMPOWERMENT ZONES, WHICH PUTS A, A TAX FREEZE, UH, FOR 10 YEARS ON A NEIGHBORHOOD.
AND, UM, IT WOULD BE NOT JUST FOR SMALL BUSINESSES, UH, BUT FOR HOMES AS WELL.
SO IN NEIGHBORHOODS LIKE OURS, IN LIKE A LOT OF DISTRICT FIVE, UM, Y'ALL MAY HAVE HEARD ME COMMENT THAT WE HAD 850 SMALL BUSINESSES JUST ALONG THE MAJOR CORRIDORS.
AND I DO SEE JUDY HERE FROM SOUTH SIDE FIRST OVER 4,000 SMALL BUSINESSES, SOUTH OF 90 SORT OF MOM AND POP TYPE BUSINESSES.
UM, AND WE KNOW THAT THEY'RE LOOKING FOR SOME TYPE OF RELIEF, UM, SO THAT THEY CAN CONTINUE TO GROW AND EXPAND.
AND WE ALSO KNOW THAT, GOSH, WASN'T IT SOMETHING LIKE 90% OF ALL PEOPLE ARE EMPLOYED, OR MAYBE EVEN MORE, 95% OF ALL PEOPLE ARE EMPLOYED IN SMALL BUSINESSES.
AND SO THEY'RE THE DRIVING FORCE OF JOBS IN OUR COMMUNITY.
AND WE KNOW THAT THERE ARE PEOPLE THAT WANT TO EXPAND TO THE NEXT LEVEL, UH, OF THEIR BUSINESS, BUT CAN'T DO IT BECAUSE OF RISING TAXES.
UH, AND ALSO THE DIFFICULTY OF, OF DEVELOPING IN SOME AREAS.
SO YOU, YOU HAVE THE TAX FEE WAIVER PROGRAM, BUT IT DOES IMPLY THAT THE PEOPLE HAVE TO DO SOME TYPE OF IMPROVEMENT TO THE BUILDING, RIGHT? SO YOU HAVE TO, UH, I DON'T KNOW, REHAB IN ORDER TO GET THE, THE, UM, ABATEMENT THE BENEFIT.
SO I GUESS, UM, I, I WOULD ASK THAT WE LOOK INTO THAT.
UH, I KNOW THAT WE HAVE, UM, INTERNALLY IN MY STAFF, WE'VE BEEN TALKING ABOUT SOME NEIGHBORHOOD EMPOWERMENT ZONES, AND I FEEL LIKE I'VE TALKED TO GODLESS ABOUT IT A FEW TIMES AS WELL OVER THE YEARS, ABOUT WHY CAN'T WE DEVELOP A PROGRAM, UM, TO SPUR ECONOMIC DEVELOPMENT WITHIN OUR EXISTING, UM, BUSINESSES, UH, WITHOUT NECESSARILY REQUIRING THEM TO SPEND THE MONEY FIRST.
IF WE HAD, UM, IN THE SAME WAY THAT WE OFFER A 10 YEAR TAX ABATEMENT TO A LARGE EMPLOYER, IF WE KNOW THAT WE HAVE 850 SMALL BUSINESSES THAT ARE EMPLOYING, I DUNNO, FOUR PEOPLE EACH, COULD WE CREATE AN EMPOWERMENT, OUR OWN SORT OF NEIGHBORHOOD EMPOWERMENT ZONE AND GIVE THEM A 10 YEAR TAX ABATEMENT, UM, TO, IF IT MEANT THAT THEY WERE GOING TO DO SOMETHING, DO SOME ADDITIONAL INVESTING AND NOT NECESSARILY IMPROVE THE FACILITIES, BUT BRING JOBS OR ADD ADDITIONAL TRAINING OR SOMETHING LIKE THAT.
SO, UM, I WOULD ASK THAT YOU ALL LOOK INTO THAT AND, AND INCLUDE THAT IN YOUR, UM, RECOMMENDATIONS AT SOME POINT.
THANK YOU VERY MUCH, ALEX, FOR THAT PRESENTATION.
[3. 19-9184 Briefing and possible action on Launch SA and the Loan Interest Buy Down Programs. [Carlos J. Contreras III, Assistant City Manager; Alejandra Lopez, Director, Economic Development Department]]
OUR NEXT ITEM ON OUR AGENDA IS GOING TO BE BRIEFING AND POSSIBLE ACTION ON LAUNCH SA AND THE LOAN INTEREST BUYDOWN PROGRAMS. UM, ALEX WILL KICK US OFF, AND THEN WE WILL HAVE OUR FRIENDS WITH, UM, LAUNCH SA AND LIFT FUND, COME UP AND DO THEIR PRESENTATIONS RIGHT AFTER, AND THEN WE'LL TAKE QUESTIONS AFTER IT ALL.SO ALL I'M REALLY GONNA DO IS INTRODUCE RYAN SALTZ, WHICH IS OUR, THE DIRECTOR OF LAUNCH SA.
HE'S GONNA GIVE US AN UPDATE ON THE PROGRAM AND A REALLY IMPORTANT MILESTONE THAT THEY RECENTLY CELEBRATED, WHICH WAS THE FIVE YEAR ANNIVERSARY OF THE PROGRAM.
MY NAME IS RYAN SALTS AND I'M THE DIRECTOR OF LAUNCH SA, UH, PRIVATE PUBLIC PARTNERSHIP OPENED IN 2014 BETWEEN THE CITY OF SAN ANTONIO AND LIFTFUND THROUGH THE ECONOMIC DEVELOPMENT DEPARTMENT.
UM, SO I'M JUST GONNA JUMP RIGHT INTO IT.
SO, LAUNCHES, SAY FORMERLY CAFE COMMERCE WAS FOUNDED ON THE IDEA THAT ENTREPRENEURS NEED SUPPORT TO GROW THEIR BUSINESS, UM, SUPPORT TO START AND GROW THEIR BUSINESS.
OUR GOAL IS TO ACT AS THE CONNECTIVE TISSUE IN THE SMALL BUSINESS COMMUNITY, ENSURING THE ENTREPRENEURS NEEDING GUIDANCE AND SUPPORT OUR CORRECTLY DIRECTED TO THE BEST RESOURCES AVAILABLE.
[00:30:01]
TOP OF THAT, WE PROVIDE EDUCATION, MENTORSHIP, AND FOSTER AN ENTREPRENEURIAL COMMUNITY WITH OVER 150 RESOURCE RESOURCES AND PARTNERS, AND OVER 200 MENTORS ACROSS ALL INDUSTRIES, UH, THROUGH PROGRAMS AND OTHER ENGAGEMENTS THROUGHOUT THE YEAR.SINCE 2014, JUNE OF 2014, WE'VE ENGAGED WITH OVER 14,000 INDIVIDUALS SEEKING TO START OR GROW A BUSINESS AND HOSTED OVER 3,600 EVENTS.
UH, AND, AND MORE INSTANCES OF ACTIVITY THAT YOU CAN SEE.
AS PART OF A 2018 ECONOMIC IMPACT STUDY CONDUCTED BY DR.
STEVE NIVEN, UH, THE SABRE INSTITUTE.
WE'VE GATHERED THAT FOR EVERY DOLLAR INVESTED INTO LAUNCHES, SAY A RETURN OF $63 COULD BE FOUND IN THE COMMUNITY.
UM, BASED ON THE AGGREGATED RESPONSES OF OUR MEMBERS.
SINCE 2018, OUR SERVICES HAVE EQUITABLY REACHED MEMBERS OF ALL COMMUNITIES, UM, IN SAN ANTONIO, AND WE STRIVE TO PROVIDE ACCESS TO ALL FROM OUR CONVENIENT LOCATION AT THE DOWNTOWN CENTRAL LIBRARY.
UM, AND ON TOP OF OUR SERVICES LAUNCHES, SAY, HAS EXPANDED INTO PROGRAMMING THAT IS EFFECTIVELY, UM, AND RESPONSIBLY SUPPORTING THE NEEDS OF ENTREPRENEURS IN OUR COMMUNITY.
THIS PROGRAMMING WAS DEVELOPED TO MEET THE NEEDS OF UN UM, MEET THE NEEDS OF OUR COMMUNITY THAT HAVE BEEN UNADDRESSED OR SERVICE GAPS THAT WE'VE SEEN FOR AUDIENCES.
UM, LOOKING FOR SUPPORT HATCHED IN 2015, BREAK FAST AND LAUNCH IS THE NATION'S FIRST CULINARY BUSINESS ACCELERATOR WAS RECOGNIZED BY THE WHITE HOUSE IN 2014 AS PART OF THE S B A ACCELERATES GROWTH, UH, COMPETITION.
TO DATE, WE SUPPORTED OVER A HUNDRED PARTICIPANTS SEEKING TO START OR GROW THEIR CULINARY BUSINESS IN SAN ANTONIO, AND THAT'S REPRESENTING ALL TYPES OF CULINARY BUSINESSES FROM FOOD TRUCKS, RESTAURANTS, BRICK AND MORTAR, UH, BREWERIES, UM, JUST TO NAME A FEW DIFFERENT SEGMENTS.
PRETTY MUCH, IF YOU WANT TO DO SOMETHING IN THE CULINARY SEGMENT, WE CAN HELP YOU.
UM, AND A FEW EXAMPLES THAT YOU, UH, MIGHT'VE HEARD OF JUST DOWNTOWN REVOLUCION COFFEE AND JUICE, UH, ROSEA COFFEE, UM, JET SETTER, PINCH SWINE HOUSE DORSAL, UH, JUST TO NAME A FEW THAT YOU MIGHT'VE SEEN.
UM, AND IN A 2018 SURVEY OF OUR PAST PARTICIPANTS, WE FOUND THAT 80% OF THEM WERE STILL OPERATING IN BUSINESS.
SO WE FIND THAT WHAT WE'RE DOING IS REALLY TRUE, TRULY HELPING STEWARD THEIR ACTIONS AND, UM, HELPING THEM SUSTAIN FORWARD.
ONE OF OUR NEWEST PROGRAMS, OUR IMPULSIVE PROGRAM WAS DEVELOPED OUT OF A REQUESTED NEED FROM THE SPANISH SPEAKING COMMUNITY FOR BUSINESS PROGRAMMING.
THE IMPULSIVE PROGRAM WAS STARTED IN 2018 TO SERVE ENTREPRENEURS LOOKING TO ACCLIMATE THEMSELVES TO THE AMERICAN BUSINESS COMMUNITY AND OVERCOME HESITATIONS FELT WHEN STARTING A BUSINESS AS A NON-NATIVE BUSINESS OWNER.
WE FOUND SOME REALLY PROMISING SUCCESS IN OUR FIRST TWO COHORTS, UM, AND HAVE SEEN A STRONG NEED TO CONTINUE SUPPORTING THIS EVER-GROWING POPULATION, UM, AND EVEN OPENING UP THAT OPPORTUNITY TO THE BROADER COMMUNITY, NOT JUST HAVING IT BE A PART OF PROGRAMS. SO WE'VE INVITED, UH, OTHER SPANISH SPEAKING COMMUNITIES LIKE A E M, UH, FOLKS THAT, UH, ADDRESS SPANISH SPEAKING COMMUNITIES SUCH AS SOUTH SIDE FIRST TO PARTICIPATE AS WELL.
UM, AND WE'VE SEEN A LOT OF PROGRESS IN THIS AREA.
THERE ARE NOT MANY RESOURCES THAT ARE OFFERED FOR SPANISH SPEAKING CLIENTS, AND SO WE'RE LOOKING TO BOLSTER THAT COMMUNITY WITH THESE RESOURCES.
UM, BUILD IS THE FIESTA OF ENTREPRENEURSHIP.
SAN ANTONIO ENTREPRENEURSHIP WEEK WAS CREATED TO RECOGNIZE THE PROGRESS, SUCCESS CHALLENGES, UM, AND OTHER DEVELOPMENTS IN OUR LOCAL ENTREPRENEURSHIP COMMUNITY.
AND OUR PROGRAMMING IS HEAVILY FOCUSED ON PERSPECTIVE SHARING, PEER MENTORSHIP, COMMUNITY DEVELOPMENT, TRY BUILDING, AND, UH, RECOGNIZING THE HARDSHIPS OF BEING A BUSINESS OWNER.
UM, THERE WEREN'T THAT MANY EVENTS DOING THIS, UH, WHEN WE STARTED IT.
SO WE'RE LOOKING TO REALLY FIT A NICHE IN HELPING PEOPLE SHARE AND BUILD THEIR OWN COMMUNITIES THROUGH PROGRAMMING LIKE THIS.
SINCE 2016, WE'VE HAD NEARLY SIX, OR HAD NEARLY 1600 ATTENDEES OVER 190 SESSIONS AND MORE THAN, UH, 370 SPEAKERS REPRESENTING ALL INDUSTRIES.
AND WE'VE HOSTED IT AROUND TOWN TO TRY TO PROVIDE ACCESS IN COMMUNITIES THAT MAY NOT SEE ENTREPRENEURSHIP PROGRAMMING AS OFTEN.
AND THEN, UM, FINALLY, OUR VENTURE CHALLENGE PROGRAM
[00:35:01]
WAS DEVELOPED AS A LEARNING CHALLENGE TO EQUIP OUR COMMUNITY WITH THE SKILLS NECESSARY TO PURSUE FUNDING, UH, IN PARTNERSHIP WITH OUTSIDE SPONSORS.THE PROGRAM CONCLUDES WITH A LIVE AUDIENCE PITCH AND AWARD OF FUNDING TO TOP PERFORMERS AS SELECTED BY COMMUNITY LEADERS, STAKEHOLDERS, AND INVESTORS WHO EVALUATE EACH FINALIST AS AN INVESTMENT OPPORTUNITY WITH POTENTIAL FOR RETURN.
THIS PROGRAM PROVIDES AN EQUAL OPPORTUNITY TO PARTICIPANTS AT ALL STAGES AND IN ALL INDUSTRIES.
AND SINCE 2016, WE'VE BEEN ABLE TO AWARD OVER $139,000, UH, OF SEED FUNDING TO 12 WINNERS.
UM, AND WE'VE OPERATED THIS PROGRAM FOR, UM, FOUR YEARS, AND WE'VE SEEN A LOT OF PROGRESS WITH IT.
WE'RE LOOKING TO REALLY HONE IN ON BUILDING A COMMUNITY OF PEOPLE SEEKING TO RAISE FUNDING AS WELL.
SO WE'RE, WE'RE GONNA BE MAKING SOME CHANGES TO TRY TO HONE IN ON THAT COMMUNITY ASPECT OF IT AS WELL.
UM, SO IN CONCLUSION, LAUNCHES SAY IS A BEACON FOR ENTREPRENEURS SEEKING SUPPORT ALONG THEIR JOURNEY, UH, THROUGH DIRECTION, EDUCATION, MENTORSHIP, AND COMMUNITY LAUNCHES, SAY HAS SUPPORTED DEVELOPMENT OF STRONGER ENTREPRENEURS THROUGH COLLABORATION AND CURATION, AND HAS SUPPORTED THE DEVELOPMENT OF A STRONGER ENTREPRENEURSHIP ECOSYSTEM AS WELL.
I INVITE YOU TO COME DOWN TO THE CENTRAL LIBRARY ANY WEDNESDAY TO COME AND SEE OUR COMMUNITY IN ACTION AND LEARN MORE ABOUT THE OPPORTUNITIES THAT EXIST TO SUPPORT THEM.
UM, AND THAT, THAT'S MY PRESENTATION.
AND NOW WE'RE GONNA GO STRAIGHT TO, UM, JANE BARRERA FOR, AND WE'LL GO BACK TO, TO QUESTIONS FOR BOTH, UM, PROJECTS.
THANK YOU SO MUCH FOR THE OPPORTUNITY TO GIVE YOU AN UPDATE ON LIFTFUND AND OUR WORK HERE IN SAN ANTONIO.
AND I'D LIKE TO INTRODUCE, UM, ALMA VALDEZ BROWN, WHO IS OUR LOAN OFF ONE OF OUR LOAN OFFICERS HERE IN SAN ANTONIO.
THEY'RE MY BACKUP BECAUSE THEY'RE REALLY THE ONES THAT DO THE JOB.
I JUST GET TO DO THE GOOD REPORTING ABOUT THE GOOD WORK HERE IN SAN ANTONIO.
SO, AS YOU KNOW, I GUESS NEXT SLIDE, WE'VE BEEN IN BUSINESS NOW HERE IN SAN ANTONIO.
UM, AND WHAT WE'VE DONE IS CREATED AN ECOSYSTEM HERE FOR THE SMALL BUSINESSES.
SO AS YOU HEARD RYAN SPEAK ABOUT THE TECHNICAL ASSISTANCE PIECE, BECAUSE RYAN IS AN EMPLOYEE OF LIFTFUND, WE HAVE THE CONTRACT WITH THE CITY OF SAN ANTONIO.
SO WE ARE RESPONSIBLE FOR MAKING SURE THAT ALL THE WORK THAT IS BEING DONE BY THEM AS ACCOUNTABLE, UM, THROUGH US FOR YOU ALL.
AND SO, NOT ONLY DO WE DO, WE DO THE TECHNICAL ASSISTANCE PIECE, BUT WE ARE ALSO THE ACCESS TO CAPITAL THAT, AS WE ALL KNOW, IS SO, UH, GREATLY NEEDED FOR, UM, SMALL BUSINESSES.
AND WHEN YOU ALL WERE DISCUSSING, UM, THE IDEA OF, UM, YOU KNOW, FEE WAIVERS AND AND SO ON, I FEEL LIKE I'M PREACHING TO THE CHOIR, TO THE, THE CITY COUNCIL PEOPLE HERE.
UH, IT'S NOT THAT I HAVE TO CONVINCE YOU.
WHAT I WOULD LIKE TO SHARE WITH YOU IS HOW CAN WE WORK TOGETHER TO GROW AND, AND MAKE IT EVEN BETTER.
SO THE PROGRAM THAT I'M REPORTING ABOUT IS THE INTEREST BUYDOWN PROGRAM.
UM, SINCE 20, UM, 16, UH, THROUGH 2019, WE HAVE BEEN PARTNERING WITH THE CITY OF SAN ANTONIO WITH AN INTEREST BUY DOWN PROGRAM.
WITH THAT, WHAT THAT MEANS IS YOU ALL PROVIDE LIFT FUND $250,000 A YEAR IN THESE, UM, YEARS.
SO OVER THE LAST TIMES, YOU ALL, THE CITY OF SAN ANTONIO HAS PROVIDED $750,000 IN THIS INTEREST BUY PROGRAM, WHICH HAS GENERATED $2.5 MILLION IN LOANS WE'RE USING.
THE INTEREST BUYDOWN PROGRAM MEANS THAT WHAT YOU'RE DOING IS OFFERING A WAIVER, IF YOU WILL, A FEE DISCOUNT IN THE INTEREST FOR THESE LOANS TO THESE SMALL BUSINESSES.
SO FOR EXAMPLE, FOR EVERY $25,000 LOAN, AND WE MAKE LOANS AT DIFFERENT, BUT I'M JUST USING THAT AS AN EXAMPLE.
FOR EVERY $25,000 LOAN, YOU ALL, WE ALL ARE HELPING THAT SMALL BUSINESS OWNER WITH $6,000 IN SAVINGS BECAUSE THEY'RE NOT HAVING TO PAY INTEREST ON THAT LOAN.
AND SO IT ALSO PROVIDES THEM AN OPPORTUNITY THEN TO, UM, BE ABLE TO BORROW MORE MONEY BECAUSE THE CAPACITY IS GOING TO BE THERE, BECAUSE NOW THEY HAVE THAT $6,000.
IN ADDITION TO THAT, UM, I'D LIKE TO SHARE WITH THE COMMITTEE THAT IN THOSE SAME TIMEFRAME WE HAVE AT L FUND IN SAN ANTONIO ONLY DISPERSED AN ADDITIONAL $14 MILLION, AN ADDITIONAL 341 LOANS THAT HAVE NOT HAD ACCESS TO THIS PRODUCT.
BECAUSE WHEN YOU ALL APPROVE THAT 250, IT'S GONE WITHIN FIVE TO SIX MONTHS.
SO THAT'S WHAT'S HAPPENING YEAR OVER YEAR IS THAT, YOU KNOW, WE HAVE PEOPLE THAT PARTICIPATE IN THE PROGRAM, IT MAXES OUT AND THEN, YOU KNOW, WE HAVE TO WAIT AND COME BACK TO THE CITY, UH, TO SEE IF WE WILL BE ABLE TO PROVIDE THIS PROGRAM THE
[00:40:01]
FOLLOWING YEAR.SO THIS SLIDE HERE ACTUALLY ADDRESSES THEN IN WHAT DISTRICTS THAT INTEREST BUY DOWN PROGRAM ACTUALLY, UM, DOES, IN ADDITION TO THAT, I HAVE ANOTHER SLIDE HERE.
IN THE SAME AMOUNT OF TIME, THE LOANS THAT WE'VE MADE IN THOSE DISTRICTS, UH, COME OUT TO, UH, MORE THAN, UM, THAT 14, $15 MILLION, RIGHT? SO IT'S NOT ONLY THE INTEREST BUY DOWN PROGRAM, BUT AN ADDITIONAL LOANS THAT LIFTFUND MAKES AN EXAMPLE OF, UM, ONE OF THE OWNERS, AND THIS ONE IS IN DISTRICT EIGHT, UH, THAT TOOK ADVANTAGE OF THE INTEREST BUY DOWN PROGRAM, THE CU THESE CUSTOMERS, SHE HAD TERRIBLE DISEASE AND COULDN'T BECAME DISABLED.
AND INSTEAD OF ASKING FOR DISABILITY, THEY OPENED UP, SHE AND HER HUSBAND OPENED UP SHOP.
AND WHAT THEY DO IS THEY CREATE THESE ESSENTIAL OILS AND, AND BRACELETS THAT HAS ACTUALLY HELPED HER WITH, UM, WITH HER ILLNESS AND SO MUCH SO THAT SHE WANTED TO SHARE IT WITH OTHERS.
AND NOW IT'S A VERY SUCCESSFUL BUSINESS AND RUNNING VERY WELL IN, UH, IN DISTRICT FIVE, WE HAVE A COMPANY THAT'S USING THIS PROGRAM CALLED BOYDS OF TEXAS, OWNED BY CATHERINE CURRAN.
HER BUSINESS FOCUSES ON HA HANDCRAFTED FRAGRANCES BUILDING ON TEXAS, UH, SENSE, UH, DISTRICT NINE, WE HAVE TRACY SHELTON.
SHE, UH, UH, SHE'S THE OWNER OF ALAMO KITCHENS.
THE SPACE IS, IS A SHARED USE COMMERCIAL KITCHEN, DESIGNED AND DEVELOPED FOR FOOD, UH, FOCUSED ENTREPRENEURS.
UH, DISTRICT EIGHT, UH, WE HAVE, UH, THE ESSENTIAL OILS BRACELET THAT I JUST DESCRIBED.
UH, DISTRICT SIX, WE HAVE, UM, DR.
MARIA AGUIRE, WHO OWNS AGUIRE UH, PEDIATRICS.
SHE'S FROM THE NEIGHBORHOOD, AND HER CLINIC HAS SERVED THE COMMUNITY FOR OVER 30 YEARS.
SO THOSE ARE THE KINDS OF EXAMPLES OF THE SMALL BUSINESSES THAT, UM, ARE RECEIVING THIS ONE PARTICULAR PROGRAM THAT WE HAVE.
STEVE, UH, NIVAN, WHO IS AN ECONOMIST, AS YOU ALL KNOW.
AND HE, UH, WE ASKED HIM TO GIVE US WHAT IS THE RETURN ON INVESTMENT THAT THE DOLLAR DOES IN OUR ECONOMY HERE IN SAN ANTONIO.
AND SO, AS YOU CAN SEE THERE, FOR EVERY DOLLAR THAT LIFTFUND LENDS IN OUR COMMUNITY, IT HAS A $11 RETURN RATE.
SO, UM, AS WE LOOK AT, YOU KNOW, GOING FORWARD AND WHAT, YOU KNOW, WHAT, WHAT OUR POSSIBILITY AND WHAT OUR NEXT STEPS, LIKE I SAID, I FEEL LIKE I'M PREACHING TO THE CHOIR BECAUSE WE ALL KNOW THAT SMALL BUSINESS GENERATES, LIKE, UH, COUNCILWOMAN GONZALEZ HAS SAID SO MANY SMALL BUSINESSES HERE IN SAN ANTONIO.
WHAT ARE THE PROGRAMS? COULD WE WORK TOGETHER WITH PROVIDING ACCESS TO CAPITAL? THIS IS ONE.
ANOTHER ONE WOULD BE A REVOLVING LOAN FUND, FOR EXAMPLE, WHERE THE, UH, A HUNDRED PERCENT OF A FUND THAT WAS BEING PUT TOGETHER WOULD GO INTO OUR COMMUNITY IN PERPETUITY.
YOU MAY HAVE SEEN IN THE NEWS MOST RECENTLY THAT BANK OF AMERICA GAVE A A HUNDRED THOUSAND DOLLARS GRANT TO LIFT FUND FOR A LATINO, UH, FUND, A LATINO SMALL BUSINESS FUND.
AND SO THE IN PERPETUITY, THAT A HUNDRED THOUSAND DOLLARS IS GONNA BE LENT TO A LATINO BUSINESS.
IT'S PAID BACK AND IT GOES BACK INTO THE FUND TO BE SERVED WITH ANOTHER LATINO BUSINESS TO ANOTHER.
SO LIFT FUND HAS SKIN IN THE GAME BECAUSE ANY FAULT DEFAULTS COME OUT OF LIFT FUND'S POCKET, IT DOESN'T COME OUT THAT A HUNDRED THOUSAND DOLLARS, IT'S THERE IN PERPETUITY.
SO WE CAN SAY FOREVER THAT A HUNDRED THOUSAND DOLLARS WILL BE REVOLVING.
WE ALSO HAVE AN AFRICAN AMERICAN FUND.
SO THE SAN ANTONIO AREA FOUNDATION, AFRICAN AMERICAN COMMUNITY HAS INVESTED.
RIGHT NOW IT'S AROUND, UM, 50, $60,000 THAT WE HAVE IN THAT FUND.
AND THAT'S BEEN RUNNING A COUPLE OF YEARS NOW WHERE WE ONLY USE THAT MONEY FOR AFRICAN AMERICAN, UM, UM, BUSINESSES.
AND AS YOU ALL WERE TALKING ABOUT EARLIER, HOW TO RE YOU KNOW, HOW DO WE REACH THESE GOALS THAT ALEX AND HER TEAM ARE DOING SUCH A GREAT JOB WITH? IS THERE A FUND THAT WE COULD CREATE JUST FOR CITY ENTREPRENEURS, THE PEOPLE THAT WORK WITH THE CITY, WHERE IT WOULD JUST BE USED THERE AND WE WOULD BE ACCOUNTABLE TO YOU OF WHERE THOSE ARE.
SO WHEN COUNCILWOMAN, YOU WERE ASKING, I WANT SPECIFICS.
THESE ARE THE BUSINESSES THAT ARE BEING AFFECTED BY THESE.
SO I'D LOVE TO HAVE MORE CONVERSATIONS, BUT THAT CONCLUDES OUR, UM, OUR PRESENTATION.
AND RYAN AND I ARE HERE FOR ANY QUESTIONS.
AND ALMA, THANK YOU VERY MUCH, JANIE.
UM, I'M GONNA GO AHEAD AND GET STARTED ON, ON THIS, THE BUY DOWN, UH, PROGRAM.
AND SO, UM, I KNOW THAT THOSE WHO'VE GONE THROUGH, UH, BREAK FAST AND LAUNCH, YOU SAID 80% ARE STILL IN OPERATION.
WHAT ABOUT THOSE WITH THE, UM, INTEREST BUY DOWN? 77%? 77%.
THAT'S OVER OUR WHOLE PORTFOLIO.
SORRY, ONLY SIX OF THE 112, SORRY, ONLY SIX OF THE 112 BUSINESSES THAT HAVE BEEN PART OF THE INTEREST BY DOWN PROGRAM HAVE GONE BELLY UP.
[00:45:01]
MM-HMM.AND THEN, UM, I DO HAVE A QUESTION ABOUT LAUNCH SA.
UH, I DIDN'T, MAYBE I DIDN'T, I WASN'T, I DIDN'T GET TO SEE IT.
BUT TELL ME, UM, BRIAN, THANK YOU SO MUCH.
UH, WHAT IS YOUR, WHAT IS YOUR BUDGET FOR LAUNCH SA? UM, WE RECEIVE, UH, 160,000 A YEAR FROM THE CITY OF SAN ANTONIO, AND THAT'S MATCHED BY LIFTFUND.
AND I THINK THESE ARE A LOT OF, UM, YOU KNOW, IT'S A LOT OF GREAT PROGRAMS THAT YOU'RE DOING WITH THIS AND WITH THE SPANISH AND THE COMMUNITY CONFERENCE AND COMMUNITY BUSINESS COMPETITION, BUT IT'S A LOT AND IT'S A, IT'S A LIMITED BUDGET THAT YOU HAVE.
SO, AND I KNOW YOU MENTIONED IT BRIEFLY IN ONE OF YOUR SLIDES AS YOU WERE CLOSING UP, BUT DO YOU FEEL LIKE YOU ALL ARE DOING TOO MUCH OR NOT DOING ENOUGH? OR YOU'RE GOING TO BE, UH, LOOKING AT IT TO SEE WHERE CAN WE GET THE MOST BANG FOR OUR BUCK? I MEAN, I JUST CURIOUS TOO.
I, I FEEL THAT LAUNCH SA IS MEANT TO RESPOND TO THE NEEDS OF THE COMMUNITY.
SO THE PROGRAMS THAT WE BUILD ARE TRUTHFULLY IN RESPONSE TO THE PEOPLE SEEKING THE RESOURCES.
SO I THINK WE'RE, WE'RE MEETING THE NEED.
UM, IF THERE WAS ANOTHER POPULATION THAT NEEDED ADDITIONAL SUPPORT, WE WOULD LOOK AND SEE IF WE COULD BUILD SOMETHING EFFECTIVELY.
BUT WE'VE DESIGNED OUR PROGRAMMING TO BE, UH, LEAN AND EFFICIENT AND SERVE THE MOST PEOPLE POSSIBLE WITH THE, UH, THE RESOURCES THAT WE HAVE.
HOW MANY WAYS DO YOU HAVE AT LAUNCHES? SAY IT'S MYSELF AND, UH, ONE OTHER, UH, LADY.
AND I KNOW YOU HAVE A BIG, UM, WELL, YOU HAVE A VERY, UM, ACTIVE AND ENGAGED BOARD AND ADVISORY MEMBERS WHO LOVE TO COME BACK AND TO SUPPORT BECAUSE THEY'RE BIG CHEERLEADERS.
UM, VERY GOOD COUNCIL MEMBER COURAGE.
NOW, UH, I JUST WANTED TO GET A LITTLE MORE INSIGHT ON, ON, UH, THIS SAME FUND.
UM, IF YOU MAKE A $25,000 LOAN MM-HMM.
AND WHAT'S THE PERCENT INTEREST? IT WOULD BE AROUND 10%.
SO YOU, THIS, THAT 6,000 THAT I'M SAYING THAT A SAVINGS WOULD'VE BEEN AT A 10% INTEREST.
AND, AND SO THE CITY IS BUYING DOWN THAT 10% TO THE CONSUMER TO WHAT LEVEL? ZERO.
AND 10% SEEMS LIKE A PRETTY HIGH RATE.
I MEAN, WITH INTEREST RATES THE WAY THEY ARE, AREN'T THEY CLOSER TO 3%, 4% EVEN FOR COMMERCIAL? YES, SIR.
UM, COUNCILMAN, WE ARE A NOT-FOR-PROFIT ORGANIZATION.
SO THE COST OF CAPITAL TO LIFT FUND IS BETWEEN THREE AND 4%.
AND NOW THEY'RE EVEN TALKING ABOUT ZERO, YOU KNOW, LESS THAN ZERO INTEREST RATES.
SO OUR BUSINESS MODEL IS THAT WE HAVE, WE BORROW TO BE ABLE TO LEND WITH A COST INVOLVED.
THAT'S WHY WE ARE ENCOURAGING NOW THESE LATINO FUNDS OR AFRICAN AMERICAN FUNDS WHERE IT BECOMES A GRANT.
NOW WE DON'T HAVE TO PAY INTEREST ON THAT.
THAT THREE TO 4% CAN GO TO THE CONSUMER SO THAT BE ABLE TO LOWER THE INTEREST RATE ON THOSE LOANS.
SO IF YOU, UM, WOULD, I WOULD LOVE TO GIVE YOU A WHOLE ANALYSIS OF, BUT THE SHORT ANSWER IS THAT AS A NOT-FOR-PROFIT ORGANIZATION, EVEN WITH THAT OF THE AVERAGE LOAN SIZE OF 10%, WE ARE 60% SELF-SUFFICIENT.
MEANING THAT THE REVENUE OFF THE PORTFOLIO, THAT 10% IS ONLY COVERING THE COST OF 60% OF OUR OPERATIONAL COSTS.
WE HAVE TO FUNDRAISE FOR THE ADDITIONAL 40% BECAUSE ALMA AND HER TEAM ARE OUT THERE WORKING WITH THE SMALL BUSINESSES.
IT'S NOT LIKE WHEN THEY GO TO THE BANK AND IT'S ONLINE AND YOU JUST PLUG IN THE NUMBERS.
OUR BUSINESSES THEY WORK WITH THE RECEIPTS ARE IN A SHOEBOX.
SO FOR A BANK, IT WOULD TAKE MAYBE AN HOUR TO MAKE A LOAN.
IT TAKES IT WEEKS BECAUSE THEY ARE NOT READY.
AND WHAT WE'RE TRYING TO DO, WE HAVE A TERRIBLE BUSINESS MODEL.
WE WANNA LOSE OUR BEST CUSTOMERS, WE WANT THEM TO GRADUATE FROM US AND GO INTO THE BANKING SITUATION.
AND I ALSO WANNA ADD TOO, THAT ALL OF OUR BORROWERS ARE, ARE, ARE PEOPLE THAT CANNOT GO TO THE BANK.
RIGHT? SO OUR MISSION IS TO HELP THOSE THAT CANNOT GO TO THEIR BANK.
SO THEY SEE THE INTEREST RATES AND THEY'RE, THEY'RE OKAY WITH IT.
THEY'RE OKAY WITH IT BECAUSE THEY WOULD OTHERWISE NOT BE ABLE TO GET FUNDING AND, AND 35% FOR A CREDIT CARD, FOR EXAMPLE.
AND A LOT OF OUR BUSINESS OWNERS ARE MINORITY WOMEN BUSINESS OWNERS, BECAUSE AGAIN,
[00:50:01]
THOSE ARE THE MOST UNDERSERVED WHEN IT COMES TO BANK BEING BANKABLE.AVERAGE CREDIT SCORE OF ONE OF OUR CUSTOMERS IS FIVE 80.
THE CUTOFF AT A BANK IS SIX 80.
AND WHAT WE'RE DOING IS REPORTING BACK TO THE CREDIT BUREAUS, THEIR PAYMENT HISTORY WITH US SO THAT THEY GRADUATE AND WE NO LONGER HAVE THEM AS, AS CUSTOMERS.
AND I THINK THAT'S SOMETHING IMPORTANT TO NOTE ON YOUR PRESENTATIONS AT THE, THE AVERAGE CREDIT SCORE SCORE IS FIVE 80 AS WELL.
WHEN IS THE FIRST TIME WE MET? YOU LOOK FAMILIAR TO ME.
IT WAS THE, I THINK TWO YEARS AGO AT THE E W D C.
I JUMPED, I JUMPED DOWN YOUR THROAT.
I GAVE YOU THE WORST TIME, DIDN'T I? THAT'S WHY I READ A SCRIPT NOW.
I I REALLY DO ADMIRE THE WORK THAT YOU'VE BEEN DOING, AND IT'S CLEAR TO ME THAT, YOU KNOW, YOU'VE BEEN, YOU WORKED REALLY HARD TO GET HERE TODAY AND, AND PRESENT TO US AND ANTICIPATE ALL OF OUR QUESTIONS AND, WHICH IS WHY I HAVE NO QUESTIONS FOR YOU, MAN.
AND JANIE, UH, I, I ALWAYS FEEL LIKE I'M IN THE PRESENCE OF SOMEBODY, UH, YOU KNOW, WHO IS WAY SMARTER THAN ANYBODY ELSE IN THE ROOM WHEN YOU'RE IN THERE.
AND SO, UH, I I, I AM SO HAPPY THAT YOU'RE STILL, YOU KNOW, UH, AT THE HELM OF THIS THING.
AND, UH, BUT I DO, I DO WANT TO ENCOURAGE BOTH OF YOU, UH, TO THINK ABOUT SOMETHING GOING FORWARD.
I, I, I'VE HEARD THE WORD LATINO OVER AND OVER AND OVER AGAIN.
'CAUSE I HAPPEN TO BE ONE, UH, AT LEAST I THINK I'M, I'M ONE
UH, BUT WHAT I WANTED TO POINT OUT IS THAT IN MY DISTRICT IN PARTICULAR, WE'RE SEEING AN EXPLOSIVE GROWTH IN ASIAN, SOUTHEAST ASIAN FAMILIES, PAKISTANI INDIAN FAMILIES WHO ARE STARTING SMALL BUSINESSES.
AND THEY'RE NOW A VERY VOCAL AND ENGAGED, UM, BLOCK OF, UH, OF CONSTITUENTS OF MINE AND, AND COUNCILMAN COURAGES AS WELL.
AND, UM, YOU KNOW, UH, COUNCILMAN HAUGH, I THINK THAT YOU'VE GOT A LOT OF THOSE FAMILIES AND BUSINESSES AND IN YOUR DISTRICT ALSO, UM, TO WHAT EXTENT, IF ANY, ARE ARE YOU FOCUSING ON INCREASING THAT NUMBER OR TALKING TO THOSE FAMILIES AND BUSINESSES? 'CAUSE I KNOW THAT YOU HAD THE, YOU KNOW, THE RIOS HELP YOU WITH THE
BUT TALK TO ME A LITTLE BIT ABOUT THE ASIAN COMPONENT OF THIS.
I'VE, I'VE DONE, UM, A LOT OF LOANS TO, UM, ASIAN BUSINESS OWNERS, UM, ONE ON THE WEST SIDE, ONE ON THE EAST SIDE, AND EVEN ONE ON THE SOUTH SIDE.
UM, AND IT'S REALLY WORD OF MOUTH FOR THEM.
AND SO IT'S, FOR ME, THE WORK IS STAYING IN TOUCH WITH THEM.
I HAVE BEEN INVITED TO SOME, UM, BUSINESS COMMUNITY MEETINGS THAT THEY MIGHT HAVE.
AND SO IT'S REALLY STAYING IN TOUCH WITH, WITH THEM, AND OF COURSE, UH, DOING AN EXCELLENT JOB SO THAT THEY CAN REFER RIGHT, RIGHT.
OTHER FAMILY MEMBERS AND FRIENDS OKAY.
SO, SO WHAT CAN WE DO TO MAKE IT MORE THAN JUST WORD OF MOUTH, RIGHT? MM-HMM.
AND YOU MAY NOT HAVE THE ANSWER TO THAT RIGHT NOW, BUT I GUESS THAT'S MY CHALLENGE TO YOU, JANIE, AND, AND RYAN IS GOING FORWARD, MAYBE WE HAVE A GOAL SET, RIGHT? THAT WE BE DELIBERATE ABOUT TALKING TO THIS SECTOR.
I WOULD LOVE TO BE CHALLENGED TO HAVE A GOAL THAT LIFTFUND MAKES A PRESENTATION IN EACH DISTRICT.
BY THE INVITATION FROM THE CITY COUNCIL PERSON, UH, TO COME TO YOUR MEETING AND TALK ABOUT IT AND PROMOTE IT, BECAUSE YOU ALL HAVE, ARE THE MOUTHPIECES.
YOU ALL HAVE, UM, YOU KNOW, MORE CLOUT THAN WE DO TO GET PEOPLE TOGETHER.
SO CONVENE, HELPING TO CONVENE THAT, UM, UH, OPPORTUNITY WOULD BE WONDERFUL.
UH, WE ARE AVAILABLE 24 7 TO GO AND MAKE PRESENTATIONS AND TALK ABOUT THE PROGRAMS. THAT BEING SAID, UM, WE HAVE A GOOD, FROM THE FUNDING SIDE, UH, THE C COMMUNITY HAS BEEN VERY, UM, VERY GENEROUS, UH, WITH US AND ARE ON OUR BOARD AND SO ON.
SO, I MEAN, THERE IS, AND, AND TO YOUR POINT ABOUT BEING INTENTIONAL OR NOT, IT JUST HAPPENS TO BE THE NUMBERS OF OUR CITY.
AND SO IT SEEMS TO ME, AND I AGREE WITH YOU, AND, AND I'LL TAKE IT ON MYSELF TO INVITE YOU GUYS OUT AND ORGANIZE SOMETHING AND 'CAUSE IT, IT SEEMS TO ME THE ONE WHO'S SET THE BAR VERY HIGH IS COUNCILWOMAN, UH, GONZALEZ, BECAUSE I LOOK AT ALL THE DOTS ON YOUR MAP, AND THEY'RE ALL IN DISTRICT FIVE.
AND, AND I MEAN, JUST JUDGING FROM ALL THE PHOTOS AND ALL THAT, I CAN SEE THAT SHE'S VERY INVOLVED AND, AND I'D LIKE TO, I'D LIKE TO HELP OUT, EVEN IF IT'S JUST TO, YOU KNOW, A SMALL AMOUNT COMPARED TO WHAT COUNCILWOMAN GONZALEZ HAS ACCOMPLISHED.
IT'S INCREASE EVERYBODY'S DISTRICT BY 10%.
[00:55:01]
WANTED TO ASK IS, UH, THE STEVE NIVAN IS A FRIEND.I ADMIRE HIM VERY MUCH, AND I THINK ALL OF US ADMIRE HIM VERY MUCH.
BUT IT SEEMS TO ME AFTER TODAY'S PRESENTATIONS THAT THE ONE WHO BENEFITS MOST FROM ALL OF THESE PROGRAMS IS STEVE NIVEN.
UH, THE, UH, AND SO I, AND IN, IN ALL SERIOUSNESS, I MEAN, NOT, NOT TO KNOCK HIS WORK, IT'S EXCELLENT WORK.
UH, BUT ARE THERE FEMALE, UM, ECONOMISTS THAT WE EVER, I MEAN, IF WE'RE TALKING ABOUT SE BETA, WE KEEP USING THE SAME ECONOMISTS OVER AND OVER AGAIN.
UM, IT, IT WOULD SEEM TO ME LIKE THIS IS ALSO AN OPPORTUNITY, RIGHT? FOR US TO CONTRACT OUT THAT WORK AND YEAH.
AND MAKE IT LOOK LIKE, YOU KNOW, WE'RE BEING TRUE TO THIS PROGRAM.
WE, WE DID A MORE INFORMAL PROCESS THIS FOR THIS YEAR.
THERE WASN'T THAT MUCH, UM, CRITERIA ASSOCIATED WITH IT, BECAUSE WE DID WANNA HAVE A MORE COMPETITIVE PROCESS.
WE DIDN'T GET ANY WOMEN RESPONDENTS.
WE DID GET A COUPLE RESPONDENTS.
WE WENT THROUGH AN EVALUATION PROCESS.
WE STILL ENDED UP SELECTING DR.
UM, BUT FOR THIS UPCOMING YEAR, WE, WE ACTUALLY WANNA, AT LEAST FROM THE CITY PERSPECTIVE, WE WANNA MOVE INTO A MULTI-YEAR CONTRACT.
SO WE'RE GONNA BE DOING AN ACTUAL FORMAL R F P.
UM, FOR THAT TYPE OF WORK THAT MOSTLY THE ECONOMIC DEVELOPMENT DEPARTMENT USES, BUT A, A COUPLE OF OTHER DEPARTMENTS USE IT AS WELL.
AND THEN LASTLY, THANK YOU FOR ENTERTAINING ME FOR A LONG TIME.
UH, I, I WANT TO PUT, I, I REALLY JUST FOR LAUNCH SA AND FOR LIFTFUND, ANY BUSINESS, OR DO YOU PICK AND CHOOSE WHICH BUSINESSES YOU WILL HELP OUT? I MEAN, LIKE, LET'S SAY IF CARLOS CONTRERAS AND I SAID, WE WANT TO GET INTO THE CANNABIS OIL BUSINESS, ARE WE, ARE WE CANDIDATES NOT THAT BUSINESS RIGHT NOW,
UH, BECAUSE THERE'S TOO, IT'S TOO VAGUE ON THAT BUSINESS.
YOU HAVE TO HAVE AN ESTABLISHED BUSINESS, UH, OR ESTABLISHED BUSINESS IDEA.
AND, UH, BUT IF AS LONG AS IT'S LEGAL, WE, YOU KNOW, WE WILL ENTERTAIN ANY BUSINESS THAT ISN'T NOT BANKABLE.
AGAIN, THE INDIVIDUAL CANNOT GO TO BANK X AND GET A LOAN TO COME TO LIFTFUND.
YOU HAVE TO BE NOT UNBANKED OR UNDERBANKED.
AND SO TO ANSWER A LITTLE BIT FURTHER ON THE INDUSTRIES, WE DON'T LEND TO REAL ESTATE INVESTORS.
SO IT'S GOTTA BE SOMEONE WHO IS OPERATING THEIR BUSINESS AND IT'S THEM.
IT'S NOT AN INVESTOR AND, AND A BUSINESS AND LAUNCH THOSE RESTRICTIONS APPLY TO YOU TOO, OR NO, THEY DON'T.
UM, IT'S FOR THE LOAN, SO, WE'LL, YEAH.
THAT'S ONLY FOR THE, OH, FOR THE LOAN, THE LENDING SIDE.
SO ON THE LAUNCH SA SIDE, UH, AS LONG AS YOU HAVE, UH, AN IDEA AND THE WILL TO DO IT, WE'LL HELP YOU.
AND WE HAVE, UH, A LIST OF OVER TWO.
WE'RE IN BUSINESS THEN WHATEVER BUSINESS.
WE HAVE OVER 200, UH, PLUS MENTORS, ALL INDUSTRIES THAT ARE WILLING TO SUPPORT YOU IN YOUR ENDEAVOR, UH, AT NO COST.
SO, UH, AS BEST WE CAN, IF WE DON'T HAVE A MENTOR, WE'LL HELP FIND A MENTOR THAT IS IN THAT INDUSTRY THAT CAN SUPPORT YOUR GROWTH.
THANKS FOR YOUR HARD WORK GUYS.
UM, THANK YOU FOR THE PRESENTATION, BUT I GUESS I JUST WANTED TO FOLLOW UP ON SOMETHING THAT YOU SAID NOW THAT YOU HAVE TO BE UNBANKABLE, BUT YOU ALSO DON'T, YOU ALSO WORK WITH SMALL BUSINESSES THAT ARE IN COOPERATION WITH AN S B A.
I MEAN, I, I, I, I HAVE A LOAN FROM AXION, TEXAS.
AND WE DID WORK IN COMBINATION WITH A REGULAR BANK.
THAT'S THE PROGRAM THAT WE RUN WITH THE S B A CALLED THE SS B A 5 0 4.
WE DO NOT ACTUALLY DO THE DISTRIBUTION OF THE FUNDS.
IT IS WHAT IS CALLED, UM, THE, THE S B A ACTUALLY USES THEIR MONEY.
SO FOR EXAMPLE, THOSE LOANS CAN RANGE UP TO $10 MILLION.
LIFT FUND DOESN'T HAPPEN TO HAVE $10 MILLION.
IT'S THE SS B A WHO ACTUALLY DOES THE LENDING ALONG WITH THE BANK.
AND WE ARE THE BACKROOM OPERATIONS, THE SERVICE PROVIDER FOR A FEE.
SO LIFT FUND IS ACTUALLY GETTING THAT.
SO WHEN I SAY TO GET A LOAN FROM LIFT FUND'S PORTFOLIO, I SEE.
TO USE OUR MONEY, YOU HAVE TO BE UNBANKABLE, OKAY.
OR OVER-LEVERAGED AT THE BANK.
FOR EXAMPLE, YOU COULD HAVE AN EXISTING BUSINESS, YOU'VE BEEN AT BANK X FOR 20 YEARS, BUT THE BANK SAYS, YOU KNOW, YOU GOT A GREAT IDEA TO EXPAND, YOU NEED $10,000 MORE.
I CAN'T HELP YOU BECAUSE YOU'RE OVER LEVERAGED.
YOU COME TO LIFT FUND, WE LOOK AT IT, WE SEE THE POTENTIAL.
SO I JUST, I KNOW THAT YOU ALL PROVIDE A VARIETY OF SERVICES.
I KNOW HERE TODAY WE'RE TALKING ABOUT THESE TWO PROGRAMS, BUT JUST NOT TO LIMIT THE WORK THAT YOU PROVIDE.
YOU'LL RECOGNIZE YEAH, LIKE THE BIG BUS, BIG LONG, THE S B A PART OF OUR WORK.
WE'VE WORKED WITH LA GLORIA, YOU KNOW, THAT'S OUR, THAT'S THE, A PARTNERSHIP THAT WE HAVE.
UM, UH, LOUIS BARRIOS RESTAURANT, UM, UH, MADRID'S MADRID'S, THE NEWEST ONE, CHRIS MADRID'S.
SO THOSE ARE ALL PART OF THAT S B A PORTFOLIO.
I KNOW YOU PROVIDE A VARIETY OF SERVICES, SO THAT'S ALL THE ONLY QUESTION THAT I HAD BECAUSE I KNOW THAT YOU DO MORE WORK BEYOND THAT.
UM, I, I GUESS JUST ONE FINAL, UM, UH, QUESTION ABOUT, UM, THE, UH, THESE TWO PROGRAMS.
[01:00:01]
COULD YOU, I FEEL LIKE I'VE HEARD IT BEFORE, COUNCILMAN GAN ALSO ASKED YOU QUESTIONS ABOUT IT, BUT I, I STILL DON'T ENTIRELY UNDERSTAND THE BUYBACK PROGRAM.SO COULD YOU TRY AGAIN? JUST, UM, IF YOU COULD READ, EXPLAIN IT ONE MORE TIME AND SEE IF IT DOESN'T MAKE MORE SENSE TO ME.
SO THE CITY PROVIDES US A $250,000 GRANT THAT IS BUYING THE INTEREST RATE DOWN ON LOANS.
SO THE EXAMPLE IS THERE'S A $25,000 LOAN, IT'S GONNA BE OVER FOUR YEARS.
THE CUSTOMER WOULD'VE PAID LIFT FUND $6,000 ON THAT USE OF THAT MONEY.
SO WHAT'S HAPPENING TO THE CUSTOMER IS OVER THAT FOUR YEARS, THEY'RE PAYING 29, 20, UH, $31,000.
RIGHT? THE 25 THAT THEY BORROWED, PLUS THE SIX FOR THE INTEREST.
RIGHT? SO OVER THAT FOUR YEARS, THEY'RE PAYING $31,000 BACK OVER FOUR YEARS BY BUYING THE INTEREST RATE DOWN.
IT'S A WIN FOR THE CUSTOMER BECAUSE YOU'RE SAVING THEM $6,000.
THEY'RE GONNA BE ABLE TO HAVE THE BEST CAPACITY, RIGHT.
BECAUSE NOW THIS, THERE'S, THAT'S WORKING CAPITAL THAT THEY DIDN'T HAVE BEFORE.
THEY'RE CREATING NEW JOBS, PAYING MORE TAXES.
AND THE WIN-WIN WIN SITUATION FOR LIFT FUND IS INSTEAD OF LIFT FUND COLLECTING THAT $6,000 OVER FOUR YEARS, WE'RE COLLECTING IT UP RIGHT NOW AND IN THAT, IN OUR PORTFOLIO NOW AS INCOME INSTEAD OF OVER FOUR YEARS.
SO IT'S A WIN-WIN FOR THE NONPROFIT TOO, TO BECOME MORE SUSTAINABLE FASTER.
I'VE BEEN AT THIS 25 YEARS, I THOUGHT BY YEAR FIVE WE'D BE SELF-SUFFICIENT.
SO I WANNA DO IT IN THE NEXT FIVE YEARS.
SO THAT'S ONE OF THESE WAYS THAT WE'RE DOING IT.
UM, VERY QUICKLY, CAN YOU TALK ABOUT WHAT WE'RE LOOKING AT ON THE SCREEN RIGHT NOW? 'CAUSE IT SAYS NON SAN ANTONIO BUY DOWN PROGRAMS AND SAN ANTONIO BUY, I JUST WANTED TO SHOW YOU THE IMPACT OF WHAT WE DO IN OUR CITY.
OH, SO THOSE ARE JUST LIFT FUNDS, JUST TOTAL FUND LOANS.
THOSE ARE LIFT FUND LOANS THAT ARE IN THE MM-HMM.
AND THEN IF YOU LOOK AT YOUR SLIDE THAT'S IN THE PACKET MM-HMM.
SO I JUST WANTED TO SHOW YOU, IT'S NOT 112, IT'S THAT.
AND LOOK WHAT WE COULD DO IF WE INCREASE THAT TWO 50 TO SOMETHING ELSE MM-HMM.
UM, JUST ONE LAST THING I'M GOING TO TO MENTION, 'CAUSE I KNOW WE'RE GONNA HAVE A CONVERSATION ABOUT THIS LATER ON.
UM, AND I THINK WE, YOU MENTIONED IT AS WE, AND WE MENTIONED IT WHEN IT COMES TO THE CREDIT SCORE MM-HMM.
UM, BUT I THINK WHAT'S IMPORTANT, YOU KNOW, WE ARE DOING THE STATUS OF, OF POVERTY REPORT IN THE CITY AND WEALTH ASSETS AND FINANCIAL HEALTH IS SOMETHING VERY IMPORTANT.
AND WHEN YOU LOOK AT THE AVERAGE CREDIT SCORE OF YOUR LOANS, WHAT, WHAT YOU SAID 5 21? NO, UH, 5 85 80 MM-HMM.
AND THEN THE AVERAGE, UM, THE, WHAT WAS IT, THE MEDIAN CREDIT STORE OF RESIDENTS FROM PREDOMINANTLY NON-WHITE ZIP CODES WAS LOWER AT 615 AND THEN IN PREDOMINANTLY WHITE ZIP CODES, WHICH IS 721.
SO WE ARE GOING TO BE LOOKING AT WHAT WE NEED TO DO AS A COMMUNITY.
YOU ALL I KNOW WILL BE PARTNERS WITH THAT, BUT I THINK THE CREATIVE SOLUTIONS AND SOLVABLE SOLUTIONS THAT WE NEED TO HAVE TOGETHER AND WORK TOGETHER TO ADDRESS THIS ISSUE.
BECAUSE BUILDING WEALTH IS ABSOLUTELY CRITICAL WHEN WE'RE TALKING ABOUT, UM, THE LATINO COMMUNITY, BUT ALL COMMUNITIES AND THOSE WHO ARE LIVING IN POVERTY RIGHT NOW.
IF MAY I RESPOND TO THAT? YES.
I MEAN, IF YOU'RE LOOKING AT IMPACT, WHAT WE CAN PROVIDE YOU IS, OKAY, WHAT ARE THE ASSETS IN THESE FAMILIES NOW WE HELP THEM IN THOSE THREE OR FOUR YEARS, WHAT IS THE ASSETS AFTER YEAR FOUR? AND WE CAN, I MEAN, WE CAPTURE THAT DATA.
WE HAVE VERY SOPHISTICATED SYSTEMS. COUNCILMAN JOHNS, YOU'VE BEEN TO OUR BUILDING.
I MEAN, IT'S VERY, YOU KNOW, SOPHISTICATED IN THAT WAY.
SO, SO WE CAN MANAGE IT YEAR OVER YEAR INFORMATION ABOUT ASSETS AND GROWING ASSETS BECAUSE, UM, INCOME IS ONE THING, BUT ASSETS ARE MORE IMPORTANT THAN INCOME.
YOU KNOW, AND THAT'S WHAT SMALL BUSINESSES DO, IS THAT THEY CREATE THOSE ASSETS FOR THESE, THESE FAMILIES.
AND THAT'S WHY I ALSO THINK YOUR CONVERSATION OF GOING TO EACH AND EVERY DISTRICTS IN DIFFERENT PARTS OF THE DISTRICTS TO HAVE THIS CONVERSATION IS ABSOLUTELY ESSENTIAL.
SO WE EVEN JUST INFORM ABOUT WHAT ARE ASSETS EXACTLY.
IN OUR COMMUNITIES TOO, THE WAY WE EXPLAIN IT, RIGHT.
INCOME IS WHEN YOU HAVE A JOB AND IT PAYS YOU, BUT THAT'S IT.
[01:05:01]
BE VOLATILE.ASSETS ARE SOMETHING THAT YOU OWN.
IT'S THAT SAYING, YOU GIVE SOMEBODY A FISH, THEY TEACH FOR A DAY, YOU KNOW, YOU OR, UH, YOU, EXCUSE ME.
YOU GIVE SOMEBODY A FISH, THEY EAT FOR A DAY, YOU TEACH SOMEBODY HOW TO FISH, THEY EAT FOR A LIFETIME.
THE WORK THAT WE ALL DO, WE HELP PEOPLE BUY THE POND WHERE THEY FISH.
AND THAT'S HOW WE BREAK THE CYCLE OF POVERTY.
UM, AND WITH THAT, THAT IS OUR THANK YOU ALL VERY MUCH FOR THE PRESENTATION.
THANK YOU, UM, ALEX, EVERYONE FOR YOUR, UH, WORK HERE TODAY AND WE STAND ADJOURNED AHEAD OF SCHEDULE.