In this month's issue of Small Business News: June 2009

    • Regina Dick-Endrizzi named as permanent Director of Office of Small Business
    • Bay Guardian Small Business Awards 2009
    • HRC Report on City Contracts with Local Business Enterprises (LBEs)
    • An Urban Institute Study on Paid Sick Leave Ordinance (PSLO)
    • Increased Opportunity for Small Businesses to Compete for CalTrans Contracts
    • and more...
    • One Year Anniversary!
    • Survey: tell SBAC about your experience starting a business in San Francisco
    • May 11 meeting highlights: Small Business Recognitions: David Sahagun and farmerbrown; Temporary Benefit Payment to Encourage Investment
    • Next Meeting: June 8
    • Sidewalk Sales
    • Flavors of San Francisco Event

 

1. NEWS & EVENTS

Mayor Gavin Newsom Appoints Regina Dick-Endrizzi as Permanent Director of the Office of Small Business and Maria Su as Permanent Director of Department of Children, Youth, and their Families

(May 18, 2009) - "I am pleased to have these talented women leading DCYF and the Office of Small Business," said Mayor Newsom. "Maria Su brings years of experience and knowledge from working at DCYF, and Regina Dick-Endrizzi has a wealth of experience facilitating city services for merchants and neighborhood associations. I could not think of better people to fulfill these positions."

Previously, Regina Dick-Endrizzi served as a legislative aide for Supervisor Ross Mirkarimi, worked for the Nuclear Policy Research Institute in Washington, D.C., and for 13 years, served as a District Manager for Buffalo Exchange, a retail apparel store.

Bay Guardian Small Business Awards 2009

(May 6, 2009) - The Bay Guardian salutes these small business warriors:

  • Small Business Advocate Winner: Regina Dick-Endrizzi
  • Employee-Owned Business Award Winner: Church Street Flowers
  • Golden Survivor Award Winner: Green Apple Books
  • Chain Alternative Award Winner: Hut Landon
  • Good Neighbor Award Winner: Urban Solutions
  • Good Neighbor Award Winner: Jens-Peter Jungclaussen
  • Arthur Jackson Diversity in Small Business Award Winner: Irene Hernandez-Feiks

Read Publisher/Founder Bruce Brugmann's blog of the award night festivities

A Report on the Number of City Contracts Awarded to Local Business Enterprises (LBEs)

(May 11, 2009) - Human Rights Commission (HRC) Director Chris Iglesias reported to Land Use & Economic Development Committee on the City's contracting for the period August 1, 2006 through March 31, 2009. The Department of Public Works (DPW) was the only department that exceeded its goal of 14% LBE participation. 

The committee agreed that as more federal and local stimulus money comes into San Francisco, it is an opportune time to scrutinize the number of contracts that go to local, minority- and women-owned businesses. 

There are currently 1,033 Certified LBE Firms of which 475 (46%) are Minority-Owned Business Enterprise (MBE), 300 (29%) are Woman-Owned Business Enterprise (WBE).  Over the 16 month period, HRC received data that over $1 billion was awarded to 420 contracts.  This is the breakdown of the contracts by category:

  • Construction: $560 million
  • Professional Services:  $73 million
  • General Services: $3.5 million
  • Purchasing: $375 million

City Department Breakdown:

  • Department of Public Health (Year 2008-09) contracted $433M
    • $315 million went to nonprofit hospitals and government
    • For-profit awardees received $110M, of which $34M, 7.7% went to LBEs
  • Public Utilities Commission $315M, 100 contracts
    • Prime LBE $80M, 25%
    • Sub-contractors $29M, 9%
  • City's Purchasing $308M, 113 term contracts
    • LBE $27M, 9%
    • 7% for blanket purchases
  • DPW  $170M, 99 contracts
    • Prime LBE received $58M, 33.3%
    • Sub LBE $24M, 14%
  • Airport $86M, 32 contracts
    • Prime LBE $3.7M, 4.3%
    • Sub LBE $5M, 5.8%
  • Port $13M, 10 contracts
    • Prime LBE $2M, 14%
    • Sub $800k, 6%

San Francisco firms received just over a half of contract money of $207 million.  City departments are required to outreach to certified firms.  Supervisors Mar, Chiu, and Maxwell will follow up on this topic when more reports become available to HRC.  Read the new additions to the ordinance that are being proposed to strengthen current 14.B regulations (pdf).

(summary of proposals) (1) require departments to set aside contracts worth $400,000 or less for the Micro-Local Business Enterprise Set Aside Program; (2) create a pilot Graduated Local Business Enterprise program that will enable graduated firms to receive a 5% bid discount; and (3) allow bidders and proposers the flexibility of meeting the participation goal by either achieving adequate good faith efforts or by meeting and/or exceeding the participation goal based on the availability of MBEs, WBEs, and OBEs.

Get LBE certified today.

Attend a workshop and learn how to meet the LBE or SFPUC Business Certification requirements and market your firm to the City. Workshops are conducted each third Thursday of every month at 10:00AM at 25 Van Ness Avenue, Suite 800.  The next workshop is on June 18, 2009.  For more information, contact Melinda Kanios at 415-252-2530 or melinda.kanios@sfgov.org

Provide an idea or vote on one to help stimulate the SF economy

(May 29, 2009) - RecoverySF.org  launched a new pilot feature that allows the public to suggest and vote on ideas related to stimulus funding investments. The ‘Vote on Ideas' feature is part of the city's continuing efforts to engage with the community through new channels. The RecoverySF Online Discussion  is a web application that allows you to submit and vote on ideas for specific topics related to the American Recovery & Reinvestment Act (ARRA). The goal is to harness the collective intelligence of our community to help shape local ARRA investments.

Increased Opportunity for Small Businesses to Compete for Caltrans Contracts
 
(May 21, 2009) - California Recovery Task Force Director Cynthia Bryant issued the statement  regarding California's first-in-the-nation partnership with the U.S. Small Business Administration to help California small businesses bid on California Department of Transportation (Caltrans) construction projects.  California will receive nearly $2.6 billion in Recovery Act funding for highway and local streets, and Caltrans is advertising projects for contractors to date.  
 
Highlighted today by Governor Schwarzenegger, the joint Bonding Assistance Initiative helps qualified small businesses access bond guarantees – which are required on Caltrans construction contracts and are currently difficult for small businesses to attain. 

Caltrans Small Business Program

Doyle Drive Project - June 2 from 6-8PM
 
Small business enterprises and disadvantaged enterprises are invited to learn more about the bid process for upcoming utility relocation and also to network with prime contractors at a pre-bid meeting on Tuesday, June 2 from 6-8pm at the Golden Gate Club (135 Fisher Loop, San Francisco, CA 94129). Click here for more information on the meeting.
 
Contractors, get certified.

Department of Public Works Announcement on Bids and Contracts

The Department of Public Works (DPW) invites all interested contractors & firms providing design, consultant, construction management & related construction services to participate in our currently advertised projects.  Some limited opportunities for consultants & vendors providing general services may be available.  DPW encourages local small business participation in our projects & recommends that you contact the Human Rights Commission at (415) 252-2500 to see how your companies may qualify for bidding and bonding assistance.  Please view our postings in the City's Bids and Contracts Database (Construction, Architects and Engineers, and Consultants and Professional Services Categories) via the following link or call their general phone number (415) 554-6229 for additional assistance.

 
The program is designed to help City agency contractors obtain or increase bonding and financing for City/Redevelopment Construction projects and increase the bidding pool for such projects.  The program is for certified Small or Micro LBE contractors who are participating in City construction contracts.  Download the program documentation (pdf) for more information.
 

Board the bus to Sacramento, and Learn how law gets enacted - June 9 -10

Have you ever wondered how Sacramento works (or doesn't)?  Have you ever thought, "there should be a law about that"?  Whether you're a seasoned lobbyist or you have never stepped foot in the State Capital, join your San Francisco Chamber of Commerce City State delegation to Sacramento on June 9 – 10 and meet with the head of the Department of Transportation, Air Resources Board, Cal EPA, state legislators and the Lt. Governor.  It is a great opportunity to express your concerns about the needs of small business and network with San Francisco business leaders.

Small Business Owners, California has a New Job Tax Credit for you!

Effective for taxable years beginning on or after January 1, 2009, small businesses with 20 or less employees may qualify for a tax credit of $3,000 for each additional full-time employee hired.  Employers may claim the credit on a 2009 Personal Income Tax or Business Entity Tax Return using the credit form for the New Jobs Tax Credit.  Call the Franchise Tax Board at 800.852.5711 for more information.

Looking for a loan?  Contact a top-ranked California bank as reported from the SBA's Office of Advocacy

The report gives a brief review of the lending activities of depository institutions in 2007-2008 based on two types of data collected by the Federal Reserve Board the call reports for June 2008 and the Community Reinvestment Act (CRA) reports for 2007. This study includes lending institutions such as Federal and state savings banks and savings and loans associations and geographic coverage of territorial areas. The loan activities and performance of these lending institutions are captured, analyzed, and the information is organized by state, number of loans, loan size, and by asset size of the institution.

Read the full report

Employers' Perspectives on San Francisco's Paid Sick Leave Policy

On March 31, 2009, the Urban Institute published a study summarizing the strategies employers in San Francisco used to comply with the Paid Sick Leave Ordinance (PSLO) that went into effect on June 6, 2007.  The ordinance requires employers with fewer than 10 employees to provide at least five days (40 hours) a year of paid sick leave; employers with more than 10 employees must provide nine days (72 hours) a year.

Although San Francisco employers faced three new policies that affected staff wages and benefits, they were able to implement the paid sick leave requirement with minimal impacts to their business.  However, as one dry cleaning store owner said, "The paid sick leave, taken by itself, is not a big deal.  But you get a triple whammy when you add that to the minimum wage increase and the health insurance." Another employer commented, "Philosophically, [PSLO] is a good thing.  I just wish it were more spread out-and that all businesses had to comply-that way it would level the playing field, so that we are not at a competitive disadvantage." One hardware company owner suggested that the "city could help San Francisco employers by giving them preference in their contracting and bidding processes."

Employers sampled implemented the PSLO in various ways summarized in four categories: 1) expanding leave for all or some employees, 2) establishing a paid time off (PTO) policy, 3) replacing other benefits and compensation policies, and 4) changing accrual rates and probationary periods.  Read the full report (pdf).

 

 

 
May 12, 2008: Last May, the  SBAC opened its doors to the small business community as the city's central point of information and assistance for small businesses located in San Francisco, providing one-to-one case management assistance including information for licenses and permits, business technical assistance, tax credits, and business resources to help business grow and thrive.
 
Survey results about SBAC's customer service:
  • 80.8% of surveyors said they saved time by contacting SBAC.
  • 70.8% thought the SBAC services were better than most City departments.
  • 89.7% would visit the SBAC in the future for business assistance and solutions.
One Year Later! Since launch, the Center has served over 2,200 small businesses obtain financial assistance, access local tax credits, navigate startup processes and license/permit requirements, advocated for small businesses, and identified resources to grow and expand businesses.  Startups account for about 60% of the cases serviced at the SBAC.  Noteworthy cases include the following:
  • Taco Truck stays in SF: a tag team effort by the Mayor's Office and the SBAC contacted the property owners and informed them of the neighborhood support for the local business. The property owners responded and rescinded the order that the truck be removed. 
  • A therapeutic massage business remains open during ownership and location changes because SBAC worked with DPH to explain small business difficulties of closing.
  • SBAC assisted a dry-cleaning store save 35% off their PGE bill, reducing their bill by $10,162.15.
  • SBAC advocated on behalf of a woman-owned skin care studio with over 20 employees from being displaced from her existing business location due to the city's permitting process.
  • SBAC responded when State Board of Equalization (BOE) erroneously told clients they were denied Seller's Permits for lack of proper identification.  With the assistance of Assembly Woman Fiona Ma's staff, SBAC investigated discovering that by law the BOE is required to accept many types of identification including San Francisco's City ID card and foreign passports.  The BOE processors received the updated report and our clients were able to obtain their Seller's Permits.
  • Postings Scam in the Castro Unveiled: SBAC helped the Castro business community catch those responsible for a shakedown scam.  Individuals posed as government officials who inspected the businesses for legal postings offered automatic compliance in exchange for a $200 fee.  Phone calls with the businesses and government agencies unveiled the scam and the perpetrators were caught.
  • SBAC worked with a small business client to track down and obtain a claim against PG&E for a power outage that caused the restaurant to lose a night of business at the Japantown area restaurant.
  • SBAC worked with Department of Building Inspection (DBI) to clarify final inspection issues for a deli-turned-restaurant.  The owners, paying rent monthly while waiting for license and permits to be approved, were running out of resources to continue the wait (6 months). SBAC worked with the client helping him obtain all the proper permits for his grand opening. 

SURVEY: Tell us about your experiences starting your business in San Francisco.  Your input will help us work with the City to streamline the City processes.
 
Meet SBAC's new summer intern, Danny Ho!  --->

Hello, San Francisco business community!  My name is Danny and I am a fourth-year political science student at San Francisco State University.  From my internship at the Small Business Assistance Center, I aim to see firsthand how policy changes at City Hall can positively impact small business owners during these trying economic times.  I'm looking forward to meeting and working with you in the weeks and months ahead. 

OSB Internship Program

 

3. SMALL BUSINESS COMMISSION

 

May 11 meeting highlights:

Small Business Recognition Award: farmerbrown restaurant

  • As a team, Jay Foster and Deanna Sison (pictured above with Small Business Commissioners) celebrate African-American traditions and cuisine with a distinctly urban vibe, and support African-American farmers and local sustainable and organic products with farmerbrown's innovative menu.  The Small Business Commission salutes farmerbrown for their creative vision encompassing a vibrant culture featuring great food, dj and live music, and a diverse staff serving San Francisco's downtown urban core.
  • Deanna Sison took advantage of local small business assistance and "saved a lot of money" by applying for local hiring tax credits, and working with Urban Solutions. Currently, farmerbrown is working with TMC Workingsolutions ( http://www.tmcworkingsolutions.org/) to finance their expansion.  A second location, Little Skillet located at 330 Ritch Street, soft launched on May 11, 2009.
  • Commissioner Clyde said it was "great to see a neighboring-serving and destination restaurant, and farmerbrown is a real achievement."  Commissioner O'Connor applauded Jay and Deanna for their "abilities as small business owners to take risks in a very difficult situation, make the best of it, and improve a mini part of San Francisco." 
  • farmerbrown restaurant is located at 25 mason street, san francisco, 415-409-3276

 
Small Business Recognition Award: David Sahagun

  From our March 9, 2009 SBC meeting

  • David Sahagun, owner of two Chevron gas stations in San Francisco, in Castro Street and Pacific Heights, was presented with the Small Business Recognition Award. 
  • President Richard Ventura praised Mr. Sahagun for his tireless small business endeavors and advocacy as he has been an active member in San Francisco since 1979 serving as the Small Business Commission's first President from 2004-2006, and continuing to share his experiences with the City's departments and the SBC.  "David's stewardship to the small business community serves as inspiration and has resulted in best practices and models for small businesses to continue to flourish during these challenging economic times."
  • Congratulations to 30 years of success, David!

Noteworthy proposal: Temporary Benefit Payment to Encourage Investment (pdf): Office of Economic and Workforce Development (OEWD) presented a temporary property tax benefit to SBC.  The proposal would amend SF Admin Code to return to the business owner for the next 2 years (2009-2010) 50% of any increase to property tax due to purchases of unsecured personal property.  The purchases need to be made in San Francisco. The departments are also reviewing the impact of adding tenant improvements to the proposal to further help small businesses.  SBC voted to recommend the proposal, including the tenant improvement, to the Board of Supervisors.

Watch the SBC meetings on SFGTV

Meeting times, agenda, and minutes are available on the website. 

The next SBC Meeting is on Monday, June 8, 2009. The SBC meets on the 2nd Monday of the month at 5:30 in room 400 of City Hall. 

 
4. SMALL BUSINESS WEEK

Small Business Week was a tremendous success this year.  Thanks to all who participated.

Thousands of small businesses celebrated the fifth annual Small Business Week in San Francisco. The event was a partnership that honored and supported San Francisco's small businesses through a series of free educational and networking events and city-wide sidewalk sales that inspired, educated and connected the business community.

Marketing, networking, and branding workshops generated the most buzz having exceeded registration numbers.  Noteworthy educational workshops included "5 Steps to Building a Spectacular Website," "6 Mini-Marketing Workshops," "Brand Building 101," and "Online Marketing & Social Media for Small Businesses".   If you missed these workshops, see SBA workshops, below under Technical Assistance section, for more marketing courses.

On May 16th, merchants all over San Francisco held sidewalk sales in more than 18 different neighborhoods to show off their style and creativity.  We hope you found some good bargains and were able to share product expertise with your local shops.

On May 18th, we had our Gala Kick-off, Flavors of San Francisco, hosted by the Office of Small Business, SBA, Chamber of Commerce and Wells Fargo. Over 800 small businesses networked and tasted samples from over 26 San Francisco restaurants. 

San Francisco Small Business Week 2009 was presented by Wells Fargo, produced in partnership with the U.S. Small Business Administration, Mayor Gavin Newsom, Small Business Commission, San Francisco Chamber of Commerce, Small Business Network and sponsored by Pacific Gas and Electric, Visa, Hewlett Packard, First-Step Marketing and Straus Events.

For more information: Small Business Week 2009 

 

5.  SHOP LOCAL SF

The Shop Local campaign launches!  Look for these displays on your local bus and bus terminals.  The campaign showcases locally-owned businesses and reminds patrons to shop local, that doing so benefits our local economy at a higher rate (3 times more!) than buying from online or non-local business.  Why Shop Local?

When you shop local, you invest in your community, in your neighbors, and in yourselves. In this economic climate, the best return on investment is in local business. It is estimated that for every dollar you spend, twice to three times as much will be reinvested in the community by a local store.

Let us share five reasons.
1. San Francisco's character prospers because a marketplace of tens of thousands of small businesses is the best way to ensure innovation, top-notch customer service, and low prices over the long-term.

2. Dollars re-circulating in the local economy funds cleaner parks, playgrounds, farmers' markets, longer museum hours, public transportation, and safer and cleaner streets because your local spending increases the tax base for public programs and services.

3. Local nonprofit organizations survive because local business owners who live in the community tend not to leave, and donate more to the infrastructure and future than nonlocal owners.

4. Jobs are created and wages increase because locally owned businesses that thrive hire more often, and provide better wages and benefits.

5. The environment stays green because the local stores help sustain vibrant, compact, walk-able commercial corridors thereby reducing automobile use and air and water pollution. Local stores also tend to import and export less.

Stay tuned next week for more information and the unveiling of the campaign. 

The Bay Guardian is a featured sponsor of the campaign. ShopLocalSF is also on Twitter. 

 
 

 

6. WORKSHOPS & TECHNICAL ASSISTANCE

Small Business Administration June Classes - the SBA offers a variety of classes including the following:

 

Comments, Suggestions, or Questions?
Do you have any comments, suggestions, complaints, or questions about our newsletter or anything else small business related?  Email us at  sbac@sfgov.org or call the office at 415-554-6134.

Remember to Shop Local in San Francisco!

 

Small Business Assistance Center
City Hall, Room 110, 1 Dr. Carlton B. Goodlett Place, San Francisco, 94102
Monday through Friday, 8AM to 5PM.
website: http://www.sfgov.org/sbac

415-554-6134 (general)
415-554-6181 (en Espanol)
415-554-6489 ()