* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:42] 2024. UH, JUST HAVE YOU GUYS HAVE TIME TO REVIEW. YES. YEP. ALRIGHT. UM, IF YOU GUYS ARE OKAY, MAY I HAVE A MOTION TO HEAR THIS ITEM? SO MOVED. SECOND. THANK YOU. AND WE HAVE A FIRST AND A SECOND COURT. YES. THANK YOU. SO HAS BEEN MOVED AND SECONDED BY COMMISSIONER AS IF, UM, MADAM CLERK SAYS. SO. ARE THERE ANY QUESTIONS ON THE MINUTES WHERE YOU CAN SEEM OKAY, I LOOKED AT 'EM. THINK IT LOOKS FINE FROM MY END. GOOD. MM-HMM? . ALRIGHT. AND I SEE THERE'S NO PUBLIC COMMENT, SO THERE'S NO PUBLIC HERE TO GIVE COMMENTS. PERFECT. AND SO NOW WE'LL HAVE ANYONE WANNA SPEAK ON THE MINUTES. IF NOT, WE CAN, UH, MOVE FORWARD. VOTE COMMISSIONER CO. DO YOU APPROVE THE MINUTES? YES. THANK YOU. . COMMISSIONER KINS, I ABSTAIN. I WOULDN'T BE, UH, AS LONG AS YOU REVIEW THE MINUTES IN YOUR PACKET, YOU'RE ABLE TO VOTE. OKAY. YES. THANK YOU. UH, COMMISSIONER NATOYA? YES. MOTION CARRIES. THANK YOU. SO NOW WE'RE GOING TO ITEM NUMBER TWO. UH, SO ITEM NUMBER TWO IS A RECOMMENDATION TO APPROVE THE REVOLVING LOAN FUND APPLICATION IN THE AMOUNT OF $25,000 FOR IF I DON'T PRONOUNCE THIS CORRECTLY, BUT, UH, THE KEEN ALREADY DBA FOOT WORK RECORDS LOCATED AT 400 EAST THIRD STREET, LONG BEACH, CALIFORNIA 9 0 8 0 2. UH, MAY I HEAR, UH, DO I HAVE A MOTION TO HEAR THIS ITEM? SO DO SECOND. THANK YOU. IT'S BEEN MOVEMENT SECONDED BY COMMISSIONER MATOYA AND COMMISSIONER COEN. SO I WILL NOW INTRODUCE TO YOU GUYS, UH, I, ANDREA, TO TALK ABOUT THE LOAN. THANKS. CREDIT MEMO. MM-HMM, . SO THIS ONE IS A, UH, STARTUP RECORD STORM, UH, LOCATED AT DOWNTOWN 400 EAST THIRD STREET. UH, THIS FULL PROPRIETORSHIP OWNED BY DAKIN, I THINK KEEP PRONOUNCE HIS NAME'S. DAKIN DAKIN. A RE, UM, I BELIEVE HE'S SOUTH AFRICAN IN DESCENT. UM, I DON'T KNOW THAT IS, IT'S NOT RELEVANT. BUT, UM, , UH, HE IS A EXPERIENCED DJ AND, UM, MARKETING PROFESSIONAL THAT IS OPENING AN ELECTRONIC, UH, A RECORD STORE, VINYL RECORDS, UM, FOCUSED ON ELECTRONIC DANCE MUSIC, DISCO HOUSE TECHNO, GERMAN BASS, THAT KIND OF THING. UM, HE RECENTLY, VERY RECENTLY OPENED, I THINK HE SAID AS OF, UM, MARCH THE FOURTH OR THIRD WAS HIS, LIKE, GRAND OPENING DAY. HIS LEASE AGREEMENT, AS YOU CAN SEE IN THAT SITE DESCRIPTION, DID COMMENCE FEBRUARY 1ST. SO IT'S VERY NEW. IT'S A BRAND NEW STARTUP RECORD STORE. AND HE'S APPLYING, HE APPLIED, YOU KNOW, AND WE'RE LOOKING AT APPROVING THE MAXIMUM FOR A STARTUP, WHICH IS 25,000, UM, TO HELP SUPPORT, UH, WORKING CAPITAL. UM, MOSTLY LIKE INVENTORY PURCHASES. YOU CAN THINK OF THE WORKING CAPITALS KIND OF INVENTORY AND A LITTLE BIT OF EQUIPMENT. HE DOES HAVE, UM, KINDA LIKE A SOUND, IT'S NOT A ROOM, NOT A, IT'S NOT LIKE A STUDIO, BUT HE HAS A LITTLE SOUND STATION LIKE IF I, IF YOU WILL, IN HIS, UM, UH, STORE SO THAT YOU CAN LISTEN TO, YOU KNOW, THE RECORDS OR THE MUSIC BEFORE YOU BUY THEM. HE ALSO HAS, UM, SOME OTHER LIKE, AUDIO EQUIPMENT, DJ EQUIPMENT, UM, WITH TURNTABLES AND A MIXER AND SOME SPEAKERS AND THAT KIND OF THING. UM, SO IT'S A VERY LIKE, EXPERIENTIAL TYPE OF RETAIL STORE. UM, HE, ANOTHER REVENUE STREAM THAT HE DOES HAVE THAT I INCLUDED IN THERE IS RENTING OUT HIS DJ EQUIPMENT AS WELL. HE HAS THE WHOLE SPEAKER SYSTEM. I THINK THAT'S VALUED AROUND $10,000 THAT HE WILL BE RENTING FOR DIFFERENT EVENTS AND THINGS LIKE THAT. UM, A LOT OF RECORDS STORES ADD THE COMPONENT, UM, YOU KNOW, DOING LIKE A LAUNCH PARTY OR A RECORD RELEASE INSIDE THE STORE. UM, AND SO THAT'S KIND OF THE, THE IDEA BEHIND SOME OF THE EQUIPMENT THAT HE HAS. UM, AND [00:05:01] SO HE'S PUT IN ABOUT 25,000 OF HIS OWN MONEY. UM, AS YOU CAN SEE ON PAGE ONE IN THE SOURCES AND USES TABLE, HE HAS INVESTED IN THAT MACHINERY EQUIPMENT, YOU KNOW, 17 K ABOUT AND HAVING SOME WORKING CAPITAL, UM, TO GET THE STORE OPEN. UM, YOU KNOW, RELATIVELY LOW BARRIER TO ENTRY THERE. UM, SO WE LIKE TO SEE THE 50%, YOU KNOW, EQUITY INVESTMENT AND THE TOTAL PROJECT COST IS, IS, IS A GOOD BENCHMARK FOR STARTUPS. WE'D LIKE TO SEE THAT THEY BRING ABOUT 50% OF THEIR OWN EQUITY. UM, AND THEN ON THE COLLATERAL TABLE, YOU CAN SEE THAT WE'LL BE LEANING, YOU KNOW, OBVIOUSLY THE ASSETS THAT HE HAS. UM, THERE IS A COLLATERAL SHORTFALL. THE ASSETS THAT HE WOULD PROBABLY BE PURCHASING WITH SOME OF THE LOAN FUNDS ARE MORE LIKE FURNITURE FIXTURES EQUIPMENT. UM, WE DIDN'T HAVE A GREAT ESTIMATE ON THAT, SO I DIDN'T REALLY ADD THAT TO THE VALUE. I JUST TOOK THE VALUE THAT WAS ON HIS BALANCE SHEET AS OF FEBRUARY 29TH, 2024. UM, SO THERE IS A COLLATERAL SHORTFALL, WHICH AGAIN, IS, IS NOT UNEXPECTED, I'D SAY, IN, UH, THIS CIRCUMSTANCE. UM, BUT YOU CAN SEE THAT I DID KIND OF PROJECT ON THE BALANCE SHEET. YOU KNOW, THAT HE MIGHT BE BUYING, YOU KNOW, ANOTHER COUPLE THOUSAND, YOU KNOW, DOLLARS OF, OF NETFLIX ASSETS OVER TIME. UM, AS GROWS HIS BUSINESS, YOU KNOW, HE MIGHT NEED MORE SPEAKER EQUIPMENT. I THINK DJS ALWAYS ARE LOOKING FOR MORE EQUIPMENT, MORE SPEAKERS, RIGHT? MORE SOUND. UM, SO THAT'S PART OF IT. UM, HE DOES HAVE VERY STRONG PERSONAL CREDIT, UM, AS REFLECTED BY THAT, UM, PERSONAL INCOME STATEMENT AND PERSONAL BUDGET. HE, UM, IN, IN THE WRITEUP I DID INCLUDE A LITTLE BIT OF HIS BACKGROUND, UM, AS A MARKETING PROFESSIONAL. UM, HE HAS ABOUT 20 YEARS EXPERIENCE AS LIKE A VINYL COLLECTOR AND DJ. AND, UH, FOR THE LAST, UH, MAYBE DECADE OR SO HE'S BEEN WORKING IN, UM, MARKETING AND DESIGN. HE HAS, UH, UH, MANY, LIKE, HE, HE PROVIDED HIS RESUME AND HE HAS LOTS OF, UH, RELEVANT EXPERIENCE, YOU KNOW, WITH KIND OF LIKE LAUNCH EVENTS AND BRAND CREATION, SALES AND MARKETING, WEBSITE BUILDS, GRAPHIC DESIGN, ALL OF THAT. BUT I THINK THAT'S A GREAT SYNERGY WITH HIS BUSINESS. UM, AND YOU KNOW, HE'S KIND OF LOOKING TO, UM, DIVERSIFY KIND OF INTO THE FESTIVAL SCENE AS WELL. HE, HE IS A KNOWN DJ IN THE FESTIVAL SCENE, SO THAT BRINGS, I THINK, MORE BRAND AWARENESS AND POTENTIAL CUSTOMERS INTO HIS STORE. SO HE'S, HE'S IMMERSED IN HIS INDUSTRY AND IN HIS LIKE, SORT OF NICHE, UH, THERE. SO I DID JUST WANNA HIGHLIGHT THAT, UM, BECAUSE I THINK THAT'S IMPORTANT, UH, FOR THIS TYPE OF, UM, RETAIL VENTURE TO BE SUCCESSFUL IS TO HAVE SOMEBODY THAT IS KNOWLEDGEABLE OF THE INDUSTRY. UM, SO IT IS A PROJECTION BASED DEAL, UH, AGAIN, 'CAUSE IT'S A STARTUP. UM, IF YOU LOOK AT THE, UH, LET'S SEE WHAT PAGE, THE PROJECTIONS ON THE P AND L. UM, SO THE, THE, AS OF FEBRUARY 29TH, HE HAD VERY LITTLE SALES, YOU KNOW, UNDER A HUNDRED, UNDER A THOUSAND DOLLARS OF SALES. UM, BUT HE'S PROJECTING TO DO ABOUT 145,000 150,000 ANNUALLY IN THIS FIRST YEAR HERE OF 2024. UM, WITH SOME MODEST INCREASES FOR 25 AND 26. UM, WE ARE SHOWING THAT HE CAN CASH FLOW THE DEBT ON A PROJECTED BASIS, UM, WITH ALSO ALLOWING A LITTLE BIT OF OFFICER'S SALARY FOR HIMSELF. SO I THINK THAT IS ONE OF THE STRENGTHS OF THE TRANSACTION IS THAT THE, HE'S BEING PRETTY REALISTIC WITH HIS SALES, UM, AND HIS COST TO GET SOLD. THERE IS SOME INFORMATION IN THE, UH, RIGHT BELOW THE PROJECTION AND THE INCOME STATEMENT. I, I DID USE SOME INFORMATION THAT HE PROVIDED IN HIS BUSINESS PLAN FOR THE ASSUMPTIONS OF HOW HE GOT TO, YOU KNOW, HOW HE'S GONNA GET THOSE SALES AND ALSO, UM, WHAT HIS COSTS ARE FOR THE INVENTORY, THAT KIND OF THING. UM, HE'S PUT A GOOD AMOUNT OF THOUGHT INTO IT. UM, HE ALSO, UM, DOES WANNA DO SOME, YOU KNOW, EVENT SPACE KIND OF RENTAL, UM, RENTALS OF THE SPACE, WHICH IS ALSO KIND OF A THING. UM, SOME, AGAIN, D OTHER DJS OR FOLKS THAT ARE COMING OUT WITH MUSIC RECORDS MIGHT RENT OUT HIS FACE TO DO THEIR OPENING. AND THAT'S ANOTHER REV, UH, REVENUE SOURCE FOR HIM. UM, AND SO I DID INCLUDE THE FINANCIAL PROJECTION ASSUMPTIONS THAT HE PUT INTO HIS BUSINESS PLAN THERE IN A, UM, IN ANOTHER TABLE, UH, BELOW MY PROJECTION. SO YOU CAN SEE THAT I TEMPERED HIM A LITTLE BIT. HE WAS SHOWING TOTAL REVENUE PER YEAR ONE, LIKE 163,000. UM, SO THAT'S USUALLY WHAT I DO. I TAKE THEIR ASSUMPTIONS AND I KIND OF, UM, YOU KNOW, TEMPERT 'EM DOWN A LITTLE BIT, UH, LOOK AT [00:10:01] 'EM WITH, YOU KNOW, SOME OF THE ANALYSIS THAT I HAVE. UM, BUT I DID WANNA SHOW YOU THAT, YOU KNOW, HE'S ACTUALLY PROJECTING HIMSELF SOMETHING VERY REASONABLE. UM, AND AGAIN, THAT SHOWS ME THAT HE'S DONE A GOOD AMOUNT OF HOMEWORK. UM, AND SO YEAH, ON A PROJECTED BASIS HE IS SHOWING THAT HE'S GONNA BE ABLE TO CASH FLOW THIS DEBT. THE PROJECTED DEBT SERVICE IS AROUND 5,000, UM, OR 5,800, LET'S CALL IT 6,000 ANNUALLY. SO IT'S RELATIVELY SMALL AMOUNT THAT HE NEEDS TO REALLY COVER RIGHT, UM, FOR THE LOAN. AND WE ARE, UM, PROPOSING A FIVE YEAR FULLY AMORTIZED LOAN. UM, MONTHLY PRINCIPAL INTEREST PAYMENTS WILL BE JUST UNDER 500 HUNDRED A MONTH. THE INTEREST RATE WILL BE FIXED AT THE 75% PRIME RATE. UM, AND WE'RE NOT BUDGETING FOR ANY, UM, INTEREST ONLY PERIODS OR ANYTHING LIKE THAT. HE IS OPEN, I THINK, YOU KNOW, A 500 A MONTH, 4 87 A MONTH PAYMENT SHOULDN'T BE TOO DIFFICULT TO MAKE, UM, YOU KNOW, STARTING RIGHT AWAY AFTER WE CLOSE THE LOAN. UM, AND HE WILL BE REQUIRED TO CREATE ONE FULL-TIME EQUIVALENT, UH, YOU KNOW, DIVINE US 40 HOURS PER WEEK JOB WITHIN THE NEXT 24 MONTHS, RETAINING HIS OWN SELF-EMPLOYMENT CAN ALSO COUNT FOR THAT. UM, SO HE DID HAVE SOME, SOME GOOD INCOME IN, UH, WHAT YEAR? UH, 20, UH, 22. SO I DID INCLUDE THAT TOO IN A LITTLE SIDE, UM, COLUMN THERE IN HIS ANNUAL INCOME AND PERSONAL BUDGET. AND THAT WAS FROM FULL-TIME EMPLOYMENT IN HIS MARKETING JOB. AND THEN IN 23 HE WORKED A LITTLE BIT IN THE MARKETING, UM, SPHERE, BUT THAT'S WHEN HE WAS, YOU KNOW, LAUNCHING THIS BUSINESS. UM, SO I WAS JUST TRYING TO SHOW THAT HE DOES HAVE, YOU KNOW, SOME GOOD, UM, EDUCATION AND BACKGROUND. SO IF HE DID, HE, SO RIGHT NOW HE'S WORKING A HUNDRED PERCENT IN THE BUSINESS, BUT IF HE DID NEED TO GO BACK TO MARKETING, HE COULD DO SOMETHING LIKE THAT ON THE SIDE. THAT COULD BE A SECONDARY, UM, INCOME SOURCE FOR REPAYMENT OF THE LOAN. UM, BUT WITH THAT, YEAH, I'LL GO TO THE STRENGTHS AND WEAKNESSES. UM, HE AGAIN, HAS THE 20 YEARS EXPERIENCE AS, UM, A DJ AND IN THE MUSIC INDUSTRY WITH 10 YEARS OF EXPERIENCE IN THIS MARKETING AND DESIGN, WHICH AGAIN, I FEEL IS VERY, UM, COMPLIMENTARY TO RUNNING THE BUSINESS. UM, AND HE CAN CASHFLOW THE DEBT. UM, IT'S STRONG ON A PROTECTED BASIS, YOU KNOW, ABOVE ONE TO ONE. IT'S AT 2.3 TO ONE FOR 2024 YEAR END. UM, AND AGAIN, BASED ON PRETTY REASONABLE ASSUMPTIONS OF A HUNDRED OR 50 K IN REVENUE A YEAR, UM, SEEMS PRETTY REASONABLE. AND HIS DEBT TO EQUITY RATIO IS RELATIVELY LOW. UM, BASICALLY AT ONE TO ONE, 1.19 TO ONE BECAUSE HE HAS INVESTED 50% OF HIS OWN EQUITY, UH, INTO THE COMPANY. AND I THINK THE OTHER REALLY GOOD STRENGTH IS THAT HE HAS, YOU KNOW, PRETTY GOOD CREDIT FOR, UM, IT'S ABOVE AVERAGE. AND HE HAS DE UH, DEMONSTRATED A HISTORY OF REPAYING HIS PERSONAL OBLIGATIONS. UM, OBVIOUSLY THE WEAKNESSES ARE THAT IT'S A STARTUP AND NOT, YOU KNOW, HE HAS, YOU KNOW, LACKING ANY HISTORY AND HISTORICAL CASH FLOW. UM, AGAIN, WE DID TRY TO MITIGATE THAT WITH MAXIMIZING, YOU KNOW, MINIMIZING THE LOAN AMOUNT TO, TO THE STARTUP MAX. AND THEN, YOU KNOW, LOOKING AT HIS, UM, PERSONAL INVESTMENT, WHICH IS, UH, COMING IN, IN THE FORM OF PAID CAPITAL TO THE COMPANY ON THE BALANCE SHEET, UM, THERE IS SOME RELATIVE RISK RIGHT TO THIS TYPE OF BUSINESS AND INDUSTRY. UM, THERE ARE SOME LINGERING, YOU KNOW, EFFECTS FROM THE PANDEMIC. RETAIL IS A LITTLE BIT TOUGH. I DO THINK THE NICHE THAT HE'S IN IS HELPFUL. IT'S PRETTY SPECIFIC. PEOPLE ARE LOOKING FOR SOMETHING VERY SPECIFIC WHEN THEY GO TO HIS STORE. UM, AND HE DOESN'T HAVE A TON OF COMPETITION, I THINK IN THE EDM SPACE. HE DID INCLUDE, UM, WHICH, LEMME SEE IF I INCLUDED IT HERE. HE INCLUDED AN ANALYSIS OF HIS COMPETITION IN HIS BUSINESS PLAN. AND, YOU KNOW, THERE'S, UH, UH, FINGERPRINTS, UH, IS A, IS ONE IS ANOTHER LOAN FUND BORROWER, UM, OR WAS A PREVIOUS ONE I THINK THEY PAID OFF, UM, ALREADY. UM, AND THEY'RE JUST LIKE A BLOCK OR TWO UP, BUT THEY DON'T REALLY HAVE A VERY EXTENSIVE, UM, EDM SECTION. THEY'RE KIND OF MORE ROCK AND ROLL ALTERNATIVE. UM, AND THE OTHER RECORD STORES IN LONG BEACH AS WELL. I THINK THERE'S LIKE FOUR OR FIVE. AND HE, I, I WAS, I LIKED THAT HE INCLUDED THAT IN HIS BUSINESS, BUT I DON'T THINK I PUT IT IN HERE NOW THAT I'M LOOKING. UM, BUT I THINK THAT HE HAS A GOOD NICHE IS IS THE POINT, UM, WITH THE OTHER COMPETITION IN THE AREA. UM, SO THAT'S A MITIGATING FACTOR TO KIND OF, I THINK SOME OF THE HIGHER INDUSTRY RISK FOR, FOR RETAIL. UM, AND THE LAST WEAKNESS IS OBVIOUSLY IT'S KIND OF, UH, UH, IT'S NOT ADEQUATELY SECURED. THERE IS SOME, UM, [00:15:01] ASSETS THAT WE WILL LEAN WITH THE UCC FILING, UM, BUT IT'S NOT ONE-TO-ONE TO COVER THE AMOUNT OF LOAN. UM, BUT WE WOULD BE IN FIRST POSITION ON THOSE ASSETS. UM, AND IT'S PRETTY COMMON THAT THESE LOANS ARE ARE NOT A HUNDRED PERCENT SECURED. SO IT'S NOT THAT RARE TO HAVE THAT AS A WEAKNESS, BUT THAT IS, THAT IS A WEAKNESS. AND SO WITH THAT, YOU KNOW, I WELCOME SOME QUESTIONS, UM, AND FEEDBACK. SO HOW DO YOU FIND OUT ABOUT THE, UH, LOAN COMMISSION THE LOAN UM, PROGRAM? I'LL GIVE THAT QUESTION TO CARLA. SO, MOST OF OUR REFERRALS COME THROUGH THE BS CARE TEAM AS WELL AS FROM OTHER BUSINESSES. WE'VE ALSO GOTTEN SOME REFERRALS THROUGH THE BS. OKAY. BUT THIS ONE CAME THROUGH THE BS CARE TEAM. OH, COOL. ALRIGHT. THAT'S GOOD. AND AS FAR AS, I MEAN, I FRANKLY AM THE DISCO GENERATION, SO I'M GLAD EVERYTHING'S COMING BACK. BELL BOTTOMS, THE WHOLE THING. YEAH, IT'S GOOD. I LIKE THE BELL BOTTOMS TOO. , YOU KNOW, PAISLEYS AND, YOU KNOW, TIE DYED SHIRTS IS, IS INCREDIBLE. JUST HOLD ON YOUR STUFF LONG ENOUGH. IT'LL BE VINTAGE. YEAH. IT MIGHT NOT FIT ANYMORE, BUT IT'S VISION . YEAH. BUT THAT'S AN INCENTIVE TO, RIGHT. WHAT DO YOU NEED TO DO ? SO, UH, I'M SPEAKING OF PERSONAL EXPERIENCE, BELIEVE ME, THAT'S WHO NEEDS A SCALE WHEN YOU GOT CLOSED . BUT, UM, UH, AND BUILT. BUT I'M THINKING, UH, AS FAR AS THIS, THIS, UH, MARKET, I KNOW THAT VINYL HAS REALLY TAKEN OFF. UH, PEOPLE ARE REALLY LOOKING FOR THAT KIND OF, UH, PRODUCT. IT SEEMS TURNTABLES ARE BACK IN TURNTABLES. SO I WAS JUST, WHAT IS THE DISTRIBUTION OF REVENUE? LIKE WHAT DOES IT THINK MOST OF THIS REVENUE IS GOING TO COME THROUGH? I CAN COULDN'T REALLY FIGURE THAT OUT. MOSTLY FROM THE RECORD SALES, THE RECORDS. YEAH. UM, IS IT ONLY IN STORE OR IS HE ALSO SELLING ONLINE? HE IS SELLING ONLINE AS WELL. UM, AND LIKE IN HIS LITTLE BREAKDOWN, HE HAS SPEAKER RENTAL MERCHANDISE. HE IS HAVING A MEMBERSHIP TYPE, UM, REVENUE STREAM AND THEN EVENT SPACE. BUT IF YOU LOOK AT IT LIKE, YOU KNOW, MOST OF HIS REVENUE IS GONNA BE COMING FROM THE RECORD SALES. BUT, UM, HE DOES GO THROUGH, I DID INCLUDE THE INFORMATION ON THE MEMBERSHIPS. HE SAYS WE WILL SELL MONTHLY MEMBERSHIPS FOR 50 TO A HUNDRED DOLLARS, WHICH INCLUDES THE FOLLOWING, LIKE PRIVATE IN-STORE, BUYING ACCESS TO FREE PARKING, 25% OFF MERCHANDISE, UM, ACCESS TO THE DJ SETUP, UM, FOR STREAMING. AND ONE-ON-ONE LESSONS. SO HE IS KIND OF ALSO DOING SOME LIKE DJ LESSONS AND THEN FOR THE ACCESS TO INVENTORY. UM, BUT I, AGAIN, I, I LIKED THAT HE HAD A LITTLE BIT OF DIVERSIFICATION IN HIS, UM, REVENUE STREAMS. IT LOOKS LIKE FOR THE EVENT STUFF, HE'S USING SOME ONLINE PLATFORMS LIKE GATE AND PEER SPACE THAT WILL ASSIST IN ATTRACTING CLIENTS FOR THE PURPOSES OF, OF EVENT RENTAL. OKAY. UM, I DID HAVE ANOTHER CLIENT, UM, NOT IN LONG BEACH, THEY'RE IN INGLEWOOD THAT ALSO THOUGH RENTED OUT. THERE'S SPACE FOR FILMING. UM, AND A COUPLE OF EPISODES OF LIKE, UM, INSECURE AND STUFF WERE FILMED THERE. SO THERE IS, THERE IS SOME OF THAT THAT GOES AROUND. AND I THINK IF YOU'RE IN THE RIGHT, UM, SPACES FOR THAT, IT, THAT MAKES SENSE. AND, UM, FROM WHAT I REMEMBER FROM THEM, THEY WOULD GET LIKE FIVE GRAND A DAY. SO, AND THAT WAS LIKE, THAT WOULD MAKE HIS RENT THOUGH, , YOU KNOW WHAT I MEAN? IT WAS LIKE A GOOD LITTLE ON TOP THING. SO, UM, I KNOW SOME LIKE, ESPECIALLY LIKE MUSIC VIDEO, LIKE, UM, PRODUCTION AND RECORDING, LIKE THAT COULD BE SOMETHING THAT THEY WOULD MAYBE RENT OUT. 'CAUSE HE ALREADY HAS ALL THE SOUND SYSTEM THERE, YOU KNOW, THAT KIND OF THING. UM, YEAH. SOUNDS INTERESTING. AGAIN, I I THINK IT'S A GREAT DIVERSIFICATION. WHAT QUESTIONS I HAVE? YEAH, GO AHEAD. YEAH. UM, I DON'T KNOW IF I REALLY HAVE QUESTIONS. IT'S MORE COMMENTS. SO HE'S, HE'S IN THE DOWNTOWN. HE'S IN OUR DISTRICT. UM, I HAVE MET WITH HIM. WE'RE ACTUALLY DOING HIS GRAND OPENING TOMORROW IS LIKE OFFICIAL BECAUSE HE OPENED UP YES. IT WAS LIKE SOFT OPENING. YEAH. SO HE'S DOING HIS OFFICIAL CEREMONY AND ALL THAT STUFF. THAT'S GREAT. YEAH. I'LL SEND, IF NOT, I'LL MAKE SURE YOU GUYS ALL BE BACK TO THAT TIME. I THINK IT'S THAT GREAT. UM, BUT HE, YOU KNOW, ONE THING THAT I, WHEN I MET HIM, ONE THING I WAS A LITTLE CONCERNED ABOUT IS LIKE, HEY, YOU KNOW, YOU DO HAVE THREE RECORD STORES RIGHT WITHIN THE BLOCK, IT'S RECORD BOX FINGERPRINTS, AND THERE'S ONE MORE OVER ON THE PIN OF ATLANTIC AND THIRD AND I AND THIRD ATLANTIC FOURTH, I CAN'T QUITE REMEMBER, BUT YOU HAVE 'EM ALL CONCENTRATED BY WITHIN THE SAME SPACE OF EACH OTHER. AND, AND THEN A COUPLE MORE WITHIN THE DOWNTOWN AS A WHOLE. AND HE WAS VERY, UM, UH, HE, HE MADE IT A POINT THAT HE WAS LOOKING AT TRULY A DM DANCE MUSIC, ELECTRONIC MUSIC THAT IS NICHE, NICHE. HE KNOWS HIS AUDIENCE. HE KNOWS WHO'S GONNA [00:20:01] COME IN. HE WASN'T TRYING TO COMPETE WITH FINGERPRINTS, HE WASN'T TRYING TO COMPETE WITH RECORD BOX. SO HE WAS OFFERING SOMETHING THAT WAS NEW. AND THEN THE OTHER PIECE TOO, IF YOU GO INSIDE HIS SPACE, IT'S, IT'S DECKED UP. IT'S REALLY COOL HOW HE HAS IT SET UP. MM-HMM. AND WANTING TO RENT IT OUT TO FOLKS WHO ARE DOING A LAUNCH FOR THEIR, FOR THEIR ALBUM OR RENTING IT OUT TO FOLKS WHO JUST WANT TO USE THE SPACE THAT HAVE LIKE A LITTLE SMALL MUSIC SESSION, WHATEVER. UM, HE SEEMS LIKE HE'S GONNA PRETTY INTO THAT. UM, AND THEN THE ONLY OTHER THING I'LL ADD IS WE'RE DOING THE ART WALK, UH, SHAMELESS PLUG. WE'RE DOING THE ART WALK ON . UM, BUT HE AND THE OTHER, UM, RECORD STORES ARE REALLY TRYING TO LEAN INTO THAT EXPERIENCE FOR FOLKS ON THAT CORNER, THAT 30 DOWN BLOCK RIGHT. WITH LVMA ON THE OTHER SIDE. LIKE I SAID, YOU HAVE FINGERPRINTS AND RECORD BOX COMING UP, UM, OR COMING UP. UM, SO I THINK HE'S A GOOD FIT FOR THE NEIGHBORHOOD AND WHAT HE'S TRYING TO DO. AND EVEN MY CONCERNS ABOUT THERE JUST BEING DUPLICATION OF SERVICE, IT DOESN'T SEEM LIKE IT'S IN THAT SPACE. SO, MM-HMM. . YEAH. AND I WOULD SAY THAT SOMETIMES WHEN THERE IS SIMILAR BUSINESSES ALL IN ONE AREA, IT CAN BE HELPFUL FOR THEM. IT'S KINDA LIKE A LITTLE, YOU KNOW, LIKE ZONE WHERE EVERYONE KNOWS TO GO THERE. ESPECIALLY IF HE, IF PEOPLE CAN'T FIND THE RECORDS THAT HE HAS AT THE OTHER STORES, THEY MIGHT GO TO THOSE STORES. BUT THEY'RE DEFINITELY GONNA COME TO THE STORE TOO TO GET THEY'RE LOOKING FOR. SO THEY CAN'T, SOMETIMES THE COMPETITION CAN'T ACTUALLY HELP YOU OUT. YEAH. YEAH. IT'S ALMOST LIKE, SEEMS LIKE A, LIKE A LITTLE ECOSYSTEM OF LIKE MUSIC AND THEN LIKE, ALMOST LIKE A MINIATURE LIKE SIMILAR OF RETRO ROW, YOU KNOW, WHERE THERE ARE SIMILAR YEAH, YEAH. WORK TOGETHER. THAT IS INTERESTING. TOXIC, TOXIC IS ON PINE. THEY'RE AROUND PINE IN SEVEN. OKAY. SO THEY'RE A LITTLE BIT AWAY. BUT YEAH, SO THERE'S SIX TOTAL TOXIC, AND THEN THERE'S LIKE THAT ONE I SAID OVER AROUND, AND THEN TWELVES IS AROUND SEVEN. AND IS THAT, I, UH, THANK YOU. YES. MY DAUGHTER GOES THERE. I TOTALLY OBJECTION. SORRY THAT I DIDN'T INCLUDE THAT. I PROBABLY SHOULD HAVE BECAUSE HE DID DO AN ANALYSIS OF THAT AS PLAN. AND I WAS LIKE, OH, OKAY, THIS IS GOOD. AND LIKE REALLY HIGHLIGHTED HIS, HIS NICHE. UM, AND THAT'S ONE THING THAT HE FOCUSED ON DURING OUR MEETING. HE MADE SURE TO LET US KNOW THAT HE HAD DONE HIS RESEARCH AND HE WAS NOT TRYING TO COMPETE WITH THEM BY HAVING THAT PO MM-HMM. FOCUS AREA. GOT IT. YEAH. AND ANOTHER THING I CAN DO, MAYBE IN THE FUTURE, HE DID HAVE SOME GOOD PICTURES ON HIS WEBSITE TOO. I GOOGLED HIM AND THEN I WAS LOOKING AT HOW HE SET IT UP. UM, AND IT IS PRETTY COOL LOOKING. AND SO IF YOU DO GO TO THE LINK ON, IN THE REPORT TO THE WEBSITE, IT DOES HAVE SOME PHOTOS OF THE INTERIOR AND LIKE HOW IT'S SET UP. UM, AND SO I'LL TRY TO INCLUDE PICTURES IN MY REPORT. YEAH, THAT'D BE NICE. THANKS, . BECAUSE IT'S PRETTY COOL. I WAS LIKE, OH, HE DID, HE'S VERY STYLISTIC. HE CAN TELL HE'S A MARKETING PERSON. . RIGHT. CAN YOU DO THAT ON, LIKE, ON THE MONITOR? SO, UH, WE COULD BRING IT UP. YEAH. I MEAN, IF WE ARE SHARING SCREENS AND STUFF, UM, THAT'D BE INTERESTING. THAT WOULD BE ANOTHER, YEAH, I CAN ALSO, WE CAN MAYBE INCORPORATE THAT INTO SOME OF THE PRESENTATIONS TOO. YEAH. I LIKE IT. I'M SURPRISED HE'S NOT SELLING TURNTABLES. I MEAN, OBVIOUSLY PEOPLE GO THERE, BUT THEY HAVE TURNTABLES ALREADY. BUT IF YOU TAKE THEIR FRIENDS, UH, THEY THINK YOU'D HAVE A WEBSITE AND DO, DO A DEAL WITH TURNTABLES. I THINK MAYBE, MAYBE DOWN THE ROAD, LIKE HE'S JUST TRYING TO GET OPEN, I THINK WITH SELLING THE RECORDS. BUT YOU'RE RIGHT DOWN, LIKE DOWN THE LINE SOMETIMES, UM, HE GETS LIKE A KIND OF WHOLESALE DEAL OR ON EQUIPMENT AND THEN HE CAN START SELLING RETAIL AT SHOP. SO THAT COULD BE SOMETHING, RIGHT. UM, THE TABLES, HE'S DEFINITELY TRYING TO DO THAT WITH SOME OF HIS SPEAKERS AND THAT KIND OF THING. MAKE, YEAH, I HAVE TO BREAK UP MY OLD SPEAKER. I DON'T HAVE IT UP. IT'S GOOD. OKAY. YEAH. ALL RIGHT. GOT IT. ANY MORE QUESTIONS OR COMMENTS? NO. ALL RIGHT. NO COMMENTS. STILL ONE DAY. UM, , SO NOW WE'LL UH, GO OVER HERE. UH, SEE IF THERE'S NO FURTHER DISCUSSION. UM, UM, WE HAVE A MOTION TO VOTE OR IS THAT HOW THAT WE CAN VOTE? OKAY. SO WE CAN ENTERTAIN A MOTION. , YOU HAVE A MOTION TO VOTE MOTION. OH, WE DO. COMMISSIONER COHEN, YOUR VOTE? YES. THANK YOU. COMMISSIONER KINS? YES. COMMISSIONER MCCO. YES. MOTION CARRIES. YEAH, IT USED TO BE TO WHERE YOU DO IT AT THE END, BUT NOW THE BEGINNING ALLOWS FOR THE DISCUSSION. IT'S A LITTLE ADJUSTMENT AND LAST, ANYWAY. YEAH, THAT'S RIGHT. . RIGHT. AM I ALLOWED TO ASK A QUESTION? UH, WE CLOSED THE, ON THE LAST ITEM ITEM, UH, IS IT QUESTION RELATED TO THE LAST ITEM AND ON WHAT'S ON THE AGENDA? IT'S DEFINITELY ON THE AGENDA. I, I'LL JUST WAIT UNTIL WE OPEN THE NEXT ONE. IF YOU CAN MAKE AN ANNOUNCEMENT AT THE END IF IT'S NOT RELATED TO ANYTHING ON THE AGENDA. OKAY. ALRIGHT. RIGHT, THE ANNOUNCEMENT SECTION. [00:25:01] THANK YOU. THAT WORK? ALL RIGHT. SO NOW WE ARE MOVING ON TO AGENDA ITEM NUMBER THREE, UH, WHICH IS A RECOMMENDATION TO APPROVE THE REVOLVING LOAN FUND APPLICATION IN AMOUNT OF 75,000 FOR SUSAN WALSH, MFP, LOCATED AT FIVE 12 REDONDO AVENUE, SUITE C ONE, UH, IN LONG BEACH, CALIFORNIA, 9 0 8 1 4. SO, UH, COULD I PLEASE HAVE A MOTION TO HEAR THIS ITEM? SO MOVED. SECOND. GREAT. SO IT'S BEEN MOVED AND SECONDED BY COMMISSIONER COHEN AND COMMISSIONER MATOYA. I WILL NOW AGAIN INTRODUCED TO YOU, ANDREA TO, UH, GIVE YOU AN OVERVIEW OF THE CREDIT MEMO. OKAY. AND SO THIS ONE IS, UH, SUSAN WALSH. M-F-T-M-F-T STANDS FOR MARRIAGE AND FAMILY THERAPIST. UM, IT, SO IT IS, UM, A, YOU KNOW, BEHAVIORAL HEALTHCARE PRACTICE FOUNDED IN 2012 THAT IS WHOLLY OWNED BY THE PRINCIPAL, SUSAN WALSH, UM, WHO GOES BY ZANE AND THE THEY THEM PRONOUNS, UH, SHE, THEY ARE A LICENSED MARRIAGE FAMILY THERAPIST, LIKE I SAID. UM, AND THIS LOAN REPORT MIGHT LOOK A LITTLE DIFFERENT TO YOU BECAUSE, UM, IT, THEY CAME THROUGH THE SAME RECOMMENDATION OF THE BIZ CARE LINE AND SHE WAS LOOKING, THEY, I'M REALLY SORRY, WERE LOOKING FOR A HIGHER AMOUNT. AND ORIGINALLY IT GOT PASSED TO THE GROW AMERICA FUND INC. WHICH IS THE SEVEN A LOANS ALSO THROUGH THE LONG, UH, GROW LONG BEACH FUND. UM, AND BUT THEN WHEN WE REALIZED IT WAS 75,000, WE WANTED TO DO IT THROUGH THE RLF, UH, PRINCIPALLY 'CAUSE WE CAN DO A BETTER INTEREST RATE THAN THEM. BUT WE DID THE SAME TERM OF 10 YEARS AND WE WERE OFFERING A MUCH LOWER RATE. THE 6.375, UH, 75% PRIME, IT'S BELOW MARKET, UH, AND THE SBA LOANS RIGHT NOW ARE GOING AT PRIME PLUS. AND SO I THINK THE RATE WAS LIKE PRIME PLUS ONE AND A HALF. 'CAUSE IT WAS LIKE 10 AND A HALF PERCENT AROUND THERE, 10 AND THREE QUARTERS. SO WE WERE ABLE TO DO QUITE A GOOD CASH FLOW SAVING. UM, BUT I DIDN'T CATCH IT. WE DIDN'T QUITE CATCH IT IN TIME TO BEFORE. THEY HAD ALREADY WRITTEN THEIR REPORT , WHICH ACTUALLY HELPED ME OUT THOUGH. SO, UM, THERE'S A LOT MORE DETAIL IN HERE, WHICH I THOUGHT ACTUALLY WOULD BE A GREAT, UH, EXAMPLE FOR YOU TO SEE HOW MUCH MORE DETAIL DOES GO INTO THE SBA LOANS. I MEAN, THEY ARE LARGER AND IT IS A DIFFERENT, UM, SOFTWARE PROGRAM THAT THEY'RE USING TO DO THEIR LOAN REPORTS. IT'S CALLED, IT'S A SYSTEM CALLED SPARK. ANYWAYS, LONG STORY SHORT, I CUT AND PASTE A BUNCH FROM THE LOAN COMMITTEE MEETING, UM, THE LOAN REPORT THAT THEY DID. SO THESE ARE MY COLLEAGUES STILL IN GROW IN GROW AMERICA NONPROFIT. AND THEY HAD ALREADY, UM, TAKEN THIS TO COMMITTEE JUST LIKE A COUPLE WEEKS AGO. AND THEN I'M A VOTING MEMBER ON THAT COMMITTEE AND I WAS LIKE, WAIT, BUT WE WANNA DO THIS WITH THE RLF, RIGHT? UM, BECAUSE IT MEETS OUR CRITERIA AND WE, UM, CAN GET SOME OF THE CDPG FUNDS OUT THAT WE'RE LOOKING TO DO. AND SO ANYWAYS, THEY WERE LIKE, GREAT, YOU GUYS DO IT. AND SO IT'S FINE. UH, BUT WE ARE GONNA BE PARTNERING WITH GROW AMERICA FUND ON SOME OTHER DEALS. AND SO THAT'S ONE OF THE DEALS THAT YOU'RE GONNA BE SEEING COMING SOON. SO ANOTHER REPORT MIGHT LOOK LIKE THIS, BUT THIS, UM, ANALYSIS HERE IS QUITE EXTENSIVE . UM, AND SO IF THE OTHER COMMITTEE ALREADY APPROVED IT, IT'S A HIGH LIKELIHOOD THAT IT'S A VERY GOOD DEAL, UM, FOR US AS WELL BECAUSE THE SBA DOES HAVE A SLIGHTLY HIGHER, UM, CREDIT STANDARDS, RIGHT? IT'S A LITTLE BIT TOUGHER TO GET AN SBA LOAN THAN THIS EDA LOAN, UH, BECAUSE THE SBA LOAN COMES WITH THAT 75% GUARANTEE OF THE GOVERNMENT. SO THERE'S, UM, VERY SPECIFIC REQUIREMENTS THAT ARE ACTUALLY KINDA LIKE MANDATED IN THE PROGRAM, UM, WHICH ESSENTIALLY COME DOWN FROM CONGRESS, YOU KNOW, TO, TO GET APPROVED FOR AN SBA LOAN. UM, IT'S A LITTLE BIT MORE STRINGENT. UM, BUT ANYWAYS, I THINK THIS IS ALSO A REALLY COOL BUSINESS, UH, BECAUSE THEY ARE FOCUSING ON SORT OF THE, UH, SERVICES, HEALTHCARE SERVICES, MENTAL AND BEHAVIORAL HEALTHCARE SERVICES TO THE LGBTQ PLUS COMMUNITY, WHICH I THINK IS A VERY, UH, NEEDED THING IN, IN HEALTHCARE AND, AND THE LONG BEACH COMMUNITY IN PARTICULAR. THERE'S, THERE'S NOT A PROLIFERATION OF MENTAL HEALTHCARE SERVICES FOR THE L-G-B-T-Q COMMUNITY. AND SO I THINK THAT THIS IS A REALLY FILLING IN A NEED AND A REALLY GOOD NICHE WHERE THERE'S A LOT OF DEMAND. UM, SO THERE'S QUITE A BIT OF DETAIL IN HERE ABOUT HER BUSINESS. UM, SHE IS DOING A, UH, MIX OF, UH, BOTH IN-PERSON AND TELEHEALTH, UM, MEETINGS. UM, LET'S SEE, I THINK, UH, SHE'S [00:30:01] ACTUALLY DOING MORE TELEHEALTHS. ABOUT 80% OF THE CLIENTS ARE SEEN THROUGH TELEHEALTH. 20% ARE SEEN IN PERSON, WHICH FOR THERAPY ESPECIALLY, LIKE TALK THERAPY IS ACTUALLY, UH, NOT THAT UNCOMMON, ESPECIALLY COMING DOWN THE PANDEMIC. EVERYTHING WENT TO TELEHEALTH AND UM, YOU KNOW, LIKE ZOOM OR TEAMS OR WHATEVER, LIKE VIDEO, UH, MEETINGS. AND IT'S JUST SLOWLY NOW COMING BACK TO THE MORE WHERE YOU ACTUALLY GO AND SIT ON THE COUCH, YOU KNOW, AND CHAT WITH SOMEBODY IN PERSON. UM, SO I THINK THAT'S GREAT THOUGH. UM, AND SHE'S, UH, THEY ARE ALSO WORKING WITH, UM, A WORK TRAINING PROGRAM, WHICH GOES REALLY HAND IN HAND WITH THE WORKFORCE DEVELOPMENT GOALS AND THE JOB CREATION GOALS THAT WE HAVE, UH, FOR THIS PROGRAM, UH, WHERE THEY ARE USING PRE-LICENSED MARRIAGE AND FAMILY THERAPISTS, UM, WHO ARE LOOKING TO ACHIEVE THEIR FULL CREDENTIAL AND LICENSURE. THEY HAVE TO DO 3000 FACE-TO-FACE CLIENT HOURS TO GET FULLY CERTIFIED AS AN MFT. UM, SO SHE, THEY ARE USING THE, UM, SOME OF THOSE FOLKS AS STAFF. UM, SO I THINK IT'S LIKE A WIN-WIN. THEY'RE TRAINING UP OTHER THERAPISTS AND, UM, TYPICALLY YOU, YOU'RE ABLE TO, UM, LOWER YOUR COSTS AS A BUSINESS OWNER, RIGHT? SO THE THE HOURS THAT THEY ARE DOING ARE AT A LOWER RATE TYPICALLY THAN YOU WOULD HAVE TO PAY A FULLY LICENSED MFT. SO IT'S KIND OF LIKE A WIN-WIN FOR THE BUSINESS. YOU CAN SEE MORE PEOPLE, YOU CAN HELP OTHER FOLKS GET LICENSED, AND THEN YOUR COSTS OF DOING BUSINESS ARE A LITTLE BIT, UH, LOWER. UM, AND SO SOMETIMES IT CAN TAKE, UM, UP TO SIX YEARS TO COMPLETE THAT 3000 HOUR REQUIREMENT. UM, AND SO THAT IS ALSO SOMETHING THAT AGAIN, I THINK IN THE SPACE WHERE THERE IS A BIG NEED FOR MORE OF THIS SORT OF, UM, NICHE, UM, THERAPY. THE, IT'S, I THINK SHE'S DOING A GREAT SERVICE TO THE INDUSTRY AS WELL, I GUESS IS MY, MY, UH, PERSONAL OPINION ON IT. UM, ALSO HEALTHCARE BUSINESSES ARE, ARE, I THINK MORE, UM, CARRY LESS RISK, RIGHT? UM, AND SO SHE DOES HAVE A BACHELOR OF SCIENCE AND BUSINESS ADMINISTRATION AND A MASTER OF SCIENCE DEGREE IN CONSULTING. SHE'S OBVIOUSLY HIGHLY EDUCATED AS WELL. UM, THERE IS ALSO QUITE A BIG COLLATERAL SHORTFALL HERE. AS YOU MIGHT IMAGINE. IT'S A SERVICE-BASED BUSINESS. THERE'S NOT A TON OF HARD ASSETS BEHIND THERAPY. BUSINESS MIGHT HAVE SOME FURNITURE FIXTURES, EQUIPMENT, THAT KIND OF THING, BUT YOU DON'T REALLY HAVE HEAVY MACHINERY OR REAL ESTATE, YOU KNOW, THAT YOU NEED, YOU NEED SOME COMPUTERS, YOU KNOW, AND THAT KIND OF THING. SO IT IS, THAT IS ONE OF THE WEAKNESSES IS THAT THERE IS NOT, UM, VERY MUCH COLLATERAL HERE. WHAT ELSE? SO YEAH, IT'S BASICALLY WORKING CAPITAL FUNDS. YOU KNOW, THERE IS A LOT OF, UM, LAG TIME BETWEEN GETTING PAID THROUGH INSURANCE OR EVEN PRIVATE PAY. A LOT OF TIMES YOU'RE GIVING 30 DAYS FOR PEOPLE TO PAY YOU, BUT THEN YOU HAVE COSTS GOING OUT. SO IT'S REALLY A WORKING CAPITAL NEED, UH, THAT THEY HAVE HERE. UM, PERSONAL CREDIT, I HAVE VERY STRONG 8 29 SCORE. UM, THAT'S PROBABLY ONE OF THE BEST WE'VE SEEN. AND AGAIN, SBA, THEY'VE UM, HA THEY, WE LEAN A LITTLE BIT MORE HEAVILY ON CREDIT SCORE. IT'S REALLY HARD FOR 'EM TO GET, UH, LOANS DONE THAT ARE, UH, YOU KNOW, IN THE SIX HUNDREDS OR LOW SIX 50. AND WE SEE QUITE A FEW IN THE SIX AS A MICRO LENDER. SO, UM, THAT'S ONE STRENGTH. SO YEAH, LET ME GO TO SOME OF THE STRENGTHS THAT WEAKNESS. CAN I SECOND? YEAH, YEAH. WE CAN TAKE QUESTIONS TOO. UH, SO JUST IN THE INCOME STATEMENT ANALYSIS MM-HMM, , THERE ARE SOME OF THESE NUMBERS THAT LOOK LIKE THEY'RE IN THE MILLIONS. CAN, CAN YOU JUST CLARIFY THAT? THAT'S THE APPLICANT'S NUMBERS, RIGHT? THAT'S, UM, I WOULD, I ASSUME GROW, NOT GROW AMERICA, BUT, UM, SO LIKE FOR EXAMPLE, IF YOU LOOK AT PAGE SEVEN OF K INCOME STATEMENT ANALYSIS, AND LET'S SAY WE GO TO SALES, AND THEN THE SECOND PARAGRAPH IN SALES, TOTAL SALES HAVE TRENDED POSITIVELY YEAR OVER YEAR FROM 154 MILLION AND FISCAL YEAR 20 MM-HMM. . SO THE M THERE, SO THIS IS FINANCIAL SOCIO THING. THIS IS A LITTLE BIT MORE OFFICIAL IN THE WAY THAT THE REPORT IS WRITTEN. SINGLE M IS ACTUALLY THOUSANDS. OH. AND THE DOUBLE M IS MILLIONS IN ACCOUNTING, LIKE BANKING. YEAH. AND HOW THEY DO THAT IN THOSE REPORTS. UM, IT'S KIND OF LIKE THE K SCHOOL IN ACCOUNTING. OKAY. YOU, IF YOU GOOGLE GL, UM, YEAH, THANK YOU. QUESTION USING K YESTERDAY, , THE, IT'S K IS LIKE A LITTLE BIT MORE COLLOQUIAL. IT'S NOT [00:35:01] ACTUALLY ACCOUNTING YESTERDAY SINGLE M AND DOUBLE ONE MI USE K TIME TOO . SO, UM, GOT IT. OKAY. YEAH. AND SO IF YOU LOOK AT THAT A HUNDRED AND WHEN IT SAYS 1 37 M, THAT'S 137,000. GOT IT. OKAY. AND SO IF YOU LOOK AT THE, UM, 2022, SHE HAD, THEY, SORRY, HAD REVENUE 1 37, 2 40. GOT IT. YEAH. THANK YOU. YES. AND I MEANT TO ACTUALLY ADDRESS THAT 'CAUSE I KNEW THERE WOULD PROBABLY BE SOME CONFUSION THERE. UM, ONE QUESTION, UH, IS SHE UH, OR ARE THEY A VETERAN? BECAUSE I NOTICED, UH, THERE WAS A, IS EVERYTHING ON THERE? YEAH, CORRECT. YES, I BELIEVE SO. SO THAT WOULD HIT ANOTHER BOX, I BELIEVE FOR US IF THEY'RE VENDOR. IF IF THEY ARE, AND WE HAVE A FORM THAT, UH, SO IT'S KIND OF, THIS ONE WAS A LITTLE CONFUSING AGAIN, THEY DID THE WHOLE APPLICATION IN ANOTHER MM-HMM. , UM, APPLICATION PORTAL, RIGHT? AND THEN I LIKE TRANSFERRED EVERYTHING OVER TO OURS, RIGHT? UM, AND THEY DID GO IN AND LOG IN AND FILL OUT PART OF IT. SO WE CAN LOOK THAT UP, UH, BECAUSE THEY WOULD'VE HAD TO ANSWER A QUESTION SPECIFICALLY ABOUT THAT. UH, AND I BELIEVE THAT'S ON OUR CDPG FORM AS WELL, SO WE CAN DOUBLE CHECK THAT. UM, BUT YES, I BELIEVE YOU'RE CORRECT. THEY ARE, BUT I AT LEAST TO DOUBLE LOOK AT. AND THE LAST QUESTION I HAVE IS, UH, AS FAR AS INSURANCE, DO THEY TAKE INSURANCE OR IS THIS A BASICALLY A FEE FOR SERVICE TYPE OF A ARRANGE, LIKE MEDI-CAL OR MEDICARE? MM-HMM. INSURANCE. AND SO YES, I BELIEVE THAT IT'S IN HERE. I BELIEVE. YES, THEY DO. I DIDN'T SEE THE IT'S A LOT OF STUFF I KNOW. NO, AND AGAIN, I, I SAW 'EM PUT IN THERE WITH THEIR FEES WERE RANGES, BUT I DIDN'T SEE, YEAH, SHE SAYS UNDER DEVELOPMENT, SHE SAYS THE BAR ACCEPTS MULTIPLE INSURANCE CARRIERS AND THERE'S A SLIDING SCALE, RIGHT? TO ENSURE SERVICES ARE ACCESSIBLE IN THE FORM PAGE THREE OF 10. YES. YES. OKAY. I I KNEW THAT, AGAIN, I'M NOT ONE ACTUALLY WROTE INTIMATELY KNOWLEDGEABLE. UM, BUT I DID SPEAK WITH THEM WAS WAS PHONE. AND AGAIN, IT WASN'T SLIGHT BIT OF COMMUNICATION BETWEEN MYSELF AND MY OTHER COLLEAGUE. WE COULD, WE SHOULD HAVE COULD'VE, SHOULD'VE WORKED, CAUGHT IT EARLIER. AND WE HAVE NOW FOR SOME OF THE TRANSACTIONS, AND WE'RE GONNA BE PARTNERING WHERE, UM, YOU KNOW, THE, WE WILL, WE WOULD BE SIMULTANEOUSLY APPROVING A TRANSACTION TO THE SAME BUSINESS WHERE LIKE A PIECE WOULD BE WITH THE RLF, AND ANOTHER LARGER PIECE WOULD BE WITH THE SBA. AND SO WE WOULD BE KIND OF LIKE DOING FEE LOANS. SO INSTEAD OF THE SBA A DOING LIKE A TWO 50, FOR EXAMPLE, THEY WOULD DO ONE 50 AND WE WOULD DO A HUNDRED. AND SO WE'RE TRYING TO PART LIKE THAT, IT HELPS, UM, SPREAD OUT THE RISK. UM, AND SO THIS ONE I WAS LIKE, WELL, WE CAN DO ALL OF IT AND WE WOULD LIKE TO, BUT ON SOME OTHER ONES, LIKE, LET'S WORK CLO MORE CLOSELY AND LET'S GET THIS DONE. SO YOU'LL HOPEFULLY BE SEEING SOME LIKE THAT, UM, IN THE FUTURE. UM, BUT YEAH, I'M HAPPY TO ANSWER ANY OTHER QUESTIONS. YEP. UH, ONE QUESTION. DID THEY, UH, TALK ABOUT, DO THEY HAVE WORD OF MOUTH REFERRALS OR HOW ARE THEY, HOW IS THE MARKET, HOW DO THEY OBTAIN NEW OR, OR CLIENTS PERIOD? SO THAT IS, UM, YOU, THERE ARE, BECAUSE THEY'RE LISTED FOR MULTIPLE INSURANCES, AND THERE'S ALSO LIKE A PSYCHOLOGY.COM OR SOMETHING LIKE THAT WEBSITE. SO A LOT OF FOLKS, WHEN YOU ARE TRYING TO FIGURE OUT THAT YOU MAYBE WANNA GET THE SERVICE THROUGH YOUR INSURANCE, THERE'S A LIST OF A APPROVED PROVIDERS. SO WHEN I GOOGLED HER, UH, SHE CAME UP A BUNCH AND A BUNCH OF 'EM WERE LIKE THE INSURANCE SITES. SO WHERE IT'S LIKE, THIS PERSON IS LISTED, UM, AND ACCEPTS THIS INSURANCE. MM-HMM. SO SHE'S PRETTY OUT THERE ON THE WEB FOR SURE. UM, AND IS LISTED ON A NUMBER OF DIFFERENT INSURANCES. UM, BUT I THINK A LOT OF IT IS WORD OF MOUTH. BUT, UM, AGAIN, I THINK SHE'S GETTING A LOT OF REFERRALS ONLINE FROM WHAT I COULD TELL, JUST BASED ON GOOGLING THEM. IT CAME UP RIGHT AWAY. AND I, THERE WAS A BUNCH DIFFERENT, UM, ONES. AND JUST ALSO PERSONALLY KNOWING LIKE HOW I LOOKED FOR THE THERAPISTS THAT I USE, I WENT TO MY INSURANCE'S WEBSITE AND THEN IF YOU GOOGLE CERTAIN PEOPLE IN YOUR COMMUNITY, IT, THEY'LL POP UP AND IT'LL SHOW YOU WHAT, WHICH INSURANCES THEY TAKE. AND USUALLY, AND AGAIN, IT'S NOT LIKE A WEBSITE THAT, THAT THEY DO THEMSELVES. IT'S LIKE THE THROUGH, ONCE THEY'RE REGISTERED WITH A INSURANCE CARRIER, THEN THEY'RE KIND OF LIKE KNOWN TO THE WORLD. AND THEN I THINK HERE THEY WANTED TO DO A WEBSITE TOO, RIGHT? LIKE TO YES. PART OF THE FUNDS ARE TO EXPAND YES. THE WEBSITE. YES. THANK YOU. THANK YOU FOR HIGHLIGHTING THAT. UM, THAT IS PART OF THE USES OF FUNDS IS THEY WOULD LIKE TO HAVE A MORE ROBUST WEBSITE THEMSELVES, UM, TO BE ABLE TO MARKET A LITTLE BIT BETTER. UM, AND [00:40:01] THERE IS SOME GOOD, UM, INVESTMENT. YOU KNOW, THERE WAS, UH, LET'S SEE ABOUT 50,000 IN EQUITY, UM, OVER TIME THAT HAS BEEN BUILT UP IN THE COMPANY. UM, STARTING AND RETAINED EARNINGS AND KIND OF, UM, YEAH, JUST EQUITY BUILT UP ON THE BALANCE SHEET. AND SHE HAS ALL THE INSURANCE SHE NEEDS BECAUSE HE'S A HEALTHCARE PROVIDER AND ALL THAT GOOD STUFF. MM-HMM. FOR THE MILK PRACTICE. YES. THAT WAS ANOTHER THING THAT THE GAF DOES NOT COLLECT UPFRONT, BUT SHE DID UPLOAD HER INSURANCE DOCUMENTS TO OUR ONLINE APPLICATION. OKAY. AND ANDREA, I THINK YOU WERE MOVING TO THE STRENGTH AND WEAKNESSES BEFORE THE QUESTION IF YOU WANTED ROUND THAT OUT. YEAH. YEAH. SO YEAH, LET'S, UH, SUMMARIZE WITH THE STRENGTH AND WEAKNESSES. UM, SO ZANE HAS NEARLY TWO DECADES OF EXPERIENCE AS A MFT, UH, SPECIALIZES IN UTILIZING, YOU KNOW, UM, THE, THE PRE-LICENSED THERAPIST TO HELP PARTICIPATE IN THEIR WORK. ALSO WITH THE L-G-B-T-Q SPECIALIZATION, I THINK STRENGTH, UM, EXCELLENT PERSONAL CREDIT AND IS SHOWING SOME MODEST, YOU KNOW, GROWTH ABOUT SIX AND A HALF PERCENT, UH, GROWTH IN SALES, UH, OVER THE LAST YEAR FROM 22 TO 23. UM, ALSO THEY'VE BEEN REPORTING, YOU KNOW, POSITIVE NET INCOME, SO THEY'RE PROFITABLE AND SALES ARE INCREASING. UH, SOME OF THE WEAKNESSES. UM, THEY, THE CASH FLOW, LET'S SEE, THROUGH THE HISTORICAL YEAR, ACTUALLY THAT IS TYPO AND NOT CASH FLOW, THE DEBT THROUGH THE HISTORICAL FOCUS FISCAL SCHOOL YEARS. BUT THEY ARE CASH FLOW, WELL, OH, I SEE. THEY DIDN'T GET THE CASH FLOWED IN 2020 AND 2021. THERE WAS, UM, A LITTLE BIT, THEY WERE LIKE 0.99, 22 AND 0.92. SO THERE WERE THIS VERY SLIGHT D UM, CASH FLOW, UH, DEFICIENCY IN THOSE YEARS. UM, 'CAUSE ONE TO ONE RIGHT, WOULD BE A HUNDRED PERCENT CASH FOLLOWING THE DEBT. UM, SO I, THAT'S VERY, VERY CLOSE 0.99 AND 0.92 ARE VERY CLOSE TO CASH FLOWING. THEY WERE ONLY LIKE A HUNDRED BUCKS AND LIKE 900 BUCKS AWAY FROM FULLY CASH FLOWING THE DEBT IN 22 AND 23. THAT'S HOW YOU CAN READ THOSE NUMBERS. UM, AND MENTAL HEALTH CARE INDUSTRY, YOU KNOW, HAS A MODERATE AMOUNT OF RISK, UM, YOU KNOW, CHALLENGES WITH RECRUITMENT AND RETENTION. I DO THINK THE BORROWER HAS, UM, BEEN ABLE TO KIND OF MITIGATE THAT WITH USING THE PRE-LICENSED THERAPISTS. UM, LET'S SEE, WHAT ELSE DO WE SEE HERE? SO THE BORROWER HAS CONTINUED TO TRAVERSE THESE CHANGES WITHIN APPLICABLE REGULATORY COMPLIANCE AND HAS INTEGRATED TELEHEALTH TECHNOLOGIES TO SERVE PATIENTS ACROSS THE STATE OF CALIFORNIA, WHICH IS REFLECTIVE OF THE GROWTH AND POSITIVE ONLINE PATIENT REVIEWS. ADDITIONALLY, THEY HAVE TWO DECADES OF EXPERIENCE. SO I THINK, YOU KNOW, MENTAL HEALTH CARE IN PARTICULAR MIGHT BE, YOU KNOW, SOMEWHAT RISKY. BUT I THINK HONESTLY, THE MORE WE COME OUT OF THE PANDEMIC, THE MORE IMPORTANT THAT MENTAL HEALTH HAS BECOME. AND SO I THINK THEY ARE IN THE RIGHT PLACE AT THE RIGHT TIME. THIS BUSINESS AND, AND THEIR SERVICES. WE DEFINITELY HAVE, UM, PTSD FROM COVID AND I CAN ARGUE THAT ONE MORE QUESTION. MM-HMM. . UM, AND I THINK I'VE ASKED THIS BEFORE, BUT IF YOU COULD JUST REMIND ME ON WHAT WE LOOK FOR IN TERMS OF THE EQUITY COMMITMENT. 'CAUSE I THINK THEY HAVE 40% MM-HMM. AND I THOUGHT WE WERE DOING, WAS IT 50 OR 51? WHEN AM I OFF? I'M SORRY. WELL, FOR IT DEPENDS ON INDUSTRY AND LENGTH OF TIME IN BUSINESS. OKAY. WHEN IT'S A STARTUP AND THEY HAVE NO CASH FLOW. MM-HMM. . SO THE PROJECTION BASED STILL, LIKE LAST ONE 30 TO 50% IS WHAT WE WOULD LIKE 20% IS WHAT IT SAYS. MINIMUM IN THE ADMIN PLAN. THANK YOU. OKAY. WHEN THEY'RE PER, UM, WHEN THEY ARE REQUESTING WORKING CAPITAL AS A USE OF FUNDS, THE ADMIN PLAN STATES ANYWHERE FROM 10 TO 20% EQUITY IS WHAT WE WOULD LIKE TO SEE. AND THEN THE ADMIN PLAN ALSO STATES SOME OVERALL PORTFOLIO GOALS OF EQUITY. LIKE, SO FOR ALL LOANS IN AGGREGATE, THEY WANNA SEE I THINK ANYWHERE FROM 20% ABOUT INEQUITY. UM, 'CAUSE ONE OF THE, ONE OF THE GOALS OF THE EDA AND LIKE REVOLVING LOAN FUNDS IS TO LEVERAGE, RIGHT? YOU, [00:45:01] YOU WANNA PROVIDE, YOU KNOW, A HUNDRED PERCENT FINANCING, BUT YOU WANNA ABLE TO ATTRACT EQUITY AND, AND LEVERAGE OTHER FUNDS GOT, SO HOPEFULLY PUT THE BUSINESS IN A BETTER POSITION SO THEY CAN GET, YOU KNOW, BETTER FINANCING POTENTIALLY FROM A BANK. MM-HMM. OR A THIRD PARTY SOURCE THAT'S NOT BELOW. GOT IT. OKAY. YEAH. THANK YOU. SO THERE'S NOT LIKE A HARD AND FAST RULE, I GUESS IS THE LONGING SHORT OF THAT ANSWER, THAT'S WHY YOU SEE IT DIFFERENT. YEAH. EACH DEAL. UM, AND IT'S ONE OF THOSE METRICS THAT IS YOU HAVE TO, UM, PUT DOWN IN YOUR PLAN THAT'S NOT NECESSARILY REPORTED ON ALL THAT WELL, OKAY. BUT IT IS IN THE REPORT THAT YOU DO DO, IT ASKS A LITTLE BIT ABOUT EQUITY AND THOSE NUMBERS ARE COMING FROM THIS TABLE THAT WE PRESENT AT THE TIME OF THE SURE. AND MOST OF THE EQUITY I'M GETTING TO PUT IN THE TABLE IS FROM THE BALANCE SHEET. MM. SO THE BALANCE SHEET AGAIN, IS SHOWING WHAT YOU OWN AND WHAT YOU OWE. AND THE DIFFERENCE BETWEEN THOSE IS THE EQUITY. GOT IT. YOU OWN MORE THINGS THAN YOU OWE, THEN YOU HAVE SOME EQUITY. MM-HMM. OR THE PAID CAPITAL, WHICH IS THAT LINE ITEM ON THE BALANCE IN THE, IN THE EQUITY SECTION OF THE BALANCE SHEET THAT SHOWS IF THE BUSINESS PUT IN MONEY OVER TIME. MM-HMM. IN THE FORM OF PAID CAPITAL. OTHERWISE THE EQUITY IS RETAINED. EARNINGS OVER TIME AND RETAINED EARNINGS ARE NET PROFITS. MM-HMM. . SO THE COMPANY WAS PROFITABLE OVER TIME. THOSE NET PROFITS AFTER THAT YEAR BECOME RETAINED EARNINGS. AND SO THAT SHOWS YOU THAT THE BUSINESS HAD BEEN PROFITABLE AND CREATED EQUITY IN THEIR COMPANY. WHAT ABOUT GOODWILL? DO YOU ADD THAT IN THERE? IT IS. THERE IS A LINE ITEM YES. FOR GOODWILL ON THE BALANCE SHEET. IT'S CALLED INTANGIBLES. WHY? 'CAUSE IT IS NOT TANGIBLE. RIGHT. MOST LENDERS DISCOUNTS THAT OUT BECAUSE THE GOODWILL'S NOT REALLY WORTH ANYTHING IF YOU'RE OUT BUSINESS. THE GOODWILL ONLY MEANS SOMETHING IF YOU'RE SUCCESSFUL AND HAVE RETAINED EARNINGS AND IN BUSINESS AND THEN YOU SELL YOUR BUSINESS ELSE. BUT IF YOU'RE OUT OF BUSINESS, AND SO THE LENDERS LOOKING AT IT LIKE IF THEY WERE OUTTA BUSINESS AND I HAD TO TAKE OVER THIS BUSINESS AND THE LENDER, WHAT EQUITY WOULD BE LEFT? AND IF IT'S JUST GOODWILL OR INTANGIBLES, , THAT MEANS NOTHING. YOU SEE WHAT I'M SAYING? SO LIKE THAT'S WHAT THAT CALCULATION. SO YOUR BALANCE SHEET MIGHT SAY ONE THING, BUT THE LENDER DOES DISCOUNTS ON WHAT'S ON THE BALANCE SHEET, BUT YOU CAN'T REALLY DISCOUNT PAID CAPITAL THEY PUT MONEY IN THAT'S CASH MONEY INTO THE BOOTH. YEAH. NO WAY TO DISCOUNT THAT. RIGHT. THAT BECOMES STRAIGHT EQUITY. RIGHT. SO YEAH. YEAH. GOOD QUESTIONS. THESE ARE REALLY GOOD QUESTIONS. THANK YOU. UM, AND SO YEAH, LET ME SEE IF I CAN, YOU'RE NOT GONNA CHANGE THE WAY THE BANKS LOOK AT IT. THAT'S WHAT I'M NO, YOU'RE REALLY NOT UNFORTUNATELY. SOMETIMES DEBATING YEAH. AND THIS IS, THIS IS LIKE INTELLECTUAL PROPERTY. YEAH. WELL, AND SOME IP CAN BE VALUED HIGHER, RIGHT? YOU MIGHT HAVE A PATENT OR SOMETHING AND THEY'RE PRODUCT BEHIND IT. RIGHT. THAT'S A LITTLE BIT MORE TANGIBLE. THAT MAKES IT MORE TANGIBLE. THERE'S IP RELATED TO A PRODUCT PRODUCT. UM, SO THERE ARE WAYS TO VALUE THAT. THAT'S ALSO WHY THERE ARE, UM, OR BRAND BUSINESS VALUATIONS THOUGH. SO IF YOU REALLY WANT TO ASSIGN VALUE FOR THE LENDER, YOU, IT IS JUST LIKE AN APPRAISAL. YOU GET SOMEBODY, LIKE A BUSINESS BROKER, THERE'S PEOPLE OUT THERE, PROFESSIONALS, AND THERE'S ACTUALLY A WHOLE LIKE LIST OF CERTIFICATIONS THAT YOU HAVE TO HAVE TO BE A BUSINESS APPRAISER OR EVALUATOR FOR SBA AND FOR THEM TO BE ABLE TO USE YOUR EVALUATION FOR COLLATERAL PURPOSES OF AN SBA LOAN. AND SO SIMILAR TO, UM, AN APPRAISAL, IT COSTS AROUND THREE TO FIVE GRAND TO GET THOSE BUSINESS VALUATIONS DONE IN A WAY THAT CAN BE USED TO ACTUALLY COLLATERALIZE. SO YOU CAN DO THAT IF YOU WANT. USUALLY IN LARGE LOANS THEY'LL DO THAT, RIGHT? BECAUSE IT'S WORTH IT, UM, FOR THEM TO SECURE THEIR BUSINESS ASSETS VERSUS GIVING OTHER REAL ESTATE OR PERSONAL ASSETS. WELL, A LOT OF THESE BUSINESSES THAT WE LOOK AT LITTLE, BUT WE'RE ALSO TALKING ABOUT INVESTING IN A PERSON. YEAH. BECAUSE THAT'S REALLY WHERE THE ACTION. SO IF THE BANK, IF THEY FAILED TO PAY THEIR LOAN, YOU'RE STILL TALKING ABOUT A HUMAN BEING. YOU CAN'T JUST ROLL IN THERE AND REPLACE THIS PERSON, UH, BECAUSE SHE'S PROVIDING A UNIQUE, YOU KNOW, SKILL. AND THEN OTHER ONE WE JUST DEALT WITH THE SAME THING. YOU KNOW, IT'S THE PERSON THAT YOU'RE TECHNICALLY INVESTING IN. YOU'RE CORRECT. I MEAN, IN BOTH OF THESE CASES, SO SUSAN AND WALSH, MFT IS ORGANIZED AS AN S CORPORATION. IT'S, IT'S HER OR THEM. IT'S A ONE PERSON SHOP. RIGHT. SAME WITH DEACON. HE'S A SOLE PROPRIETOR. IT'S DEACON AT DOING BUSINESS AT, SO AT THE END OF THE DAY, IT REALLY IS THE PERSON OF KIND, WHICH IS WHY WE GO SO DEEP INTO THEIR EDUCATION, THEIR EXPERIENCE, THEIR BACKGROUND, THEIR PERSONAL PROJECT REACH TO HAVE THAT, UH, ABILITY TO LOOK AT A LOAN LIKE THE OLD SCHOOL DAYS WHERE YOU ACTUALLY LOOK AT THE PERSON YOU'RE, YOU'RE GIVING. YEAH. WHERE THE PHONE NUMBER, YOUR PHONE NUMBER, YOU NEVER CAN COOK. NO ONE EVER ANSWERS THE PHONE. YOU KNOW, AND THEY DO ALL THE ANALYSIS AT THE BANK. YEAH. . YEAH. IS THERE A GOOD QUESTION? IT'S REALLY GOOD QUESTION. OKAY. ANY MORE QUESTIONS? NO. WHAT ARE NO [00:50:01] QUESTIONS? HE REALLY SAID HE WASN'T GONNA TALK. HE'S NOT . SORRY. IT'S OKAY. . SO SEE THAT THERE'S, UH, NO MEMBER OF THE PUBLICS PRESENT. UM, IT'S OKAY. MADAM FACT, WE CAN MOVE ON TO CALLING THE FOR VOTE. MR. SURE. CON YES. MR. KINS? YES. MR. MCGUIRE? YES. MOTION CARRIES. PERFECT. THANK YOU. ALL RIGHT. SO NOW ITEM NUMBER FOUR, UH, RECOMMENDATION TO DISCUSS TIFFANY LOVE, DBA LOVE TRYING , TRL POSITIVE MAGAZINE'S REQUEST TO REMOVE PERSONAL GUARANTEE REQUIREMENT OF CHELSEA HOOD. UM, SO MAY I HAVE A MOTION TO GET THIS ITEM STILL SECOND. ALRIGHT, IT'S BEEN MOVED IN SECOND BY COMMISSIONER MONTOYA AND COMMISSIONER COLE. UM, SO WE'LL JUST TURN OVER TO STAFF HERE MYSELF AND THEN I'LL TURN IT OVER TO ANDREA HERE. SO, UM, I KNOW, UH, COMMISSIONER LOCKER S YOU WERE NOT HERE LAST TIME, BUT THIS WAS A RETURN ITEM FROM, UH, THE PREVIOUS MEETING. UM, THIS WAS, UH, WHERE, UH, COMMISSIONER, UH, MAT COMMISSIONER COHEN, UM, REVIEWED IT PREVIOUSLY AND HAD APPROVED IT WITH A CONDITION THAT THERE WOULD BE A PERSONAL, UH, GUARANTEE REQUIREMENT. UM, AND THEY, UH, COMMUNICATED INFORMATION, UH, TO, UH, THE OWNER OF, UH, THE BUSINESS HAS COMMUNITY COMMUNICATED INFORMATION THAT, UH, THERE IS CONCERN OF ADDING THE INDIVIDUAL, UM, AS A PERSONAL GUARANTEE DUE TO THEIR CURRENT HEALTH STATUS. UH, THAT IS, UH, REALLY NOT THE INDIVIDUAL. UH, CHELSEA IS NOT DOING SO WELL. UH, AND THEY'RE CONCERNED THAT THIS WOULD JUST PLACE KIND OF AN, YOU KNOW, AN ADDITIONAL BURDEN THAT WOULD IMPACT THEIR HEALTH, UH, IN A NEGATIVE WAY. UM, SO I THINK THAT'S BASICALLY WHAT WAS COMMUNICATED TO US. BUT ANDREA AND, AND CARLA, PLEASE FEEL FREE TO, TO ADD CONTENT CONTEXT TO THAT. I THINK YOU, I THINK YOU SUMMED IT UP QUITE NICELY, RIGHT? SO THE CONDITION WAS PUT ON THE LOAN AT APPROVAL LAST MEETING TO REQUIRE THIS ADDITIONAL PERSONAL GUARANTEE, UM, OF THE INDIVIDUAL WHO IS THE PARTNER OF THE PRIMARY OWNER. UM, AND THE, THEY'RE LIKE THE FATHER OF THE, OF THE CHILD. THEY LIVE TOGETHER, THEY'RE NOT LEGALLY MARRIED, THEY HAVE A CHILD TOGETHER AND THAT'S WHO THAT PERSON IS. UH, BUT WE, MYSELF AND CARLOS STAFF IS NOT ABLE TO MAKE THAT DECISION, UH, YOU KNOW, TO, TO REMOVE A CONDITIONAL REQUIREMENT THAT THE COMMITTEE MEMBERS HAVE PUT ON TO THE APPROVAL. SO, UM, WE HAD TO BRING IT BACK AND THAT'S, YOU KNOW, WHAT WE'RE HERE TO DO. AND I THINK THE REASON THAT THAT, UH, WAS STATED IS ACCURATE FROM THE EMAIL COMMUNICATIONS, UM, THAT WE'VE HAD WITH, WITH THE POTENTIAL BORROWER. YEAH. SO THE QUESTION I HAD REALLY IS, IS THE, IS THE SUBCOMMITTEE, UH, UH, COMFORTABLE WITH REMOVING THAT, THAT CONDITION? AND, YOU KNOW, WE CAN DEFINITELY, I KNOW, UH, COMMISSIONER, UH, KINZE NOT HERE. SO WOULD IT BE HELPFUL WE CAN, YOU KNOW, MAYBE ANDREA CAN DO A OF, OF, OF IT. UM, LEMME JUST ASK ONE QUICK QUESTION THEN, BECAUSE WE CAN STATE THAT PART. ARE WE TALKING ABOUT THE, THIS SOLE PROPRIETORSHIP? IS THERE ANOTHER PARTY TO THIS, UH, LOAN OR JUST THAT ONE INDIVIDUAL? SO IS THAT WHERE YOU'RE ASKING THE PERSONAL GUARANTEE FROM? Y SO YEAH, SO THIS LOAN WOULD BE MADE TO TIFFANY LOVE DOING BUSINESS ADS. UM, AND SO SHE DOESN'T GUARANTEE THE LOAN BECAUSE THE LOAN IS ACTUALLY MADE TO HER AS A CORRECT PROPRIETOR. AND THIS ADDITIONAL, UM, GUARANTOR REQUIREMENT IS, YEAH, FOR ALL INTENTS AND PURPOSES CONSIDERED LIKE A CO-SIGNER. UM, IT'S NOT HER, IT'S HER PARTNER WHO IS NOT INVOLVED IN THE BUSINESS AT ALL. THAT PERSON IS NOT COMFORTABLE WITH THE PERSONAL GUARANTEE ON HER DUE TO THESE HEALTH REASONS. I THINK. I THINK NEITHER OF THEM ARE COMFORTABLE, NEITHER OF THEM. THE, THE, THE THOUGHT PROCESS BEHIND ADDING IT IS THAT THEY ARE PROVIDING FINANCIAL SUPPORT AND A SECONDARY INCOME SOURCE OR THE PRIMARY BORROWER PRESENTED IN THE TRANSACTION. IT'S A VERY SMALL LOAN OF ONLY 15,000. UM, BUT ALSO IF YOU LOOK THROUGH SOME OF IT, THERE IS UM, YOU KNOW, NOT A TON OF PERSONAL INCOME BEING REPORTED BY OUR PRINCIPAL, UM, OR ASSETS REALLY. UM, AND SO THAT WAS WHAT KIND OF, AS WELL AS UM, THE INDIVIDUAL DOES NOT UTILIZE ANY CREDIT. CREDIT CAME BACK UNSCORED, UM, 'CAUSE SHE DOES NOT HAVE ANY OUTSTANDING CREDIT. SO IT WAS JUST, [00:55:01] THERE'S NOT A LOT OF THE PER, YOU KNOW, WE JUST TALKED ABOUT IT GOES A LOT TO THE PERSON. AND SO THE PERSON THAT WE HAVE, THERE'S NOT, THERE'S NOT A LOT THERE. RIGHT. BUT WE DO KNOW THERE'S SOMEONE BEHIND IT THAT IS PROVIDING THAT SUPPORT. SO IT'S NOT UNCOMMON TO REQUIRE THIS IF THEY WERE LEGALLY MARRIED BECAUSE WE'RE IN THE STATE OF CALIFORNIA COMMUNITY PROPERTY STATE, THE LENDER HAS A RIGHT TO REQUIRE THAT PERSON TO GUARANTEE THAT WOULD'VE BEEN PRESENTED THAT WAY. BUT BECAUSE THEY'RE NOT LEGALLY MARRIED CAN'T TECHNICALLY REQUIRE IT OFF THE BAT. BUT IT COULD BECOME A CONDITION WHICH IS WHAT HAPPENED HERE. BUT THEN THEY DON'T WANT THEY'RE OBJECTING . EXACTLY. YEAH. OKAY. SO I MEAN YEAH, SINCE YOU'VE RUN THROUGH THE WHOLE THING, LIKE WHAT STAFF'S RECOMMENDATION ON THIS ONE? SO WE DID, WE DID TALK ABOUT IT. UH, AND SO YOU CAN SEE ON THE AGENDA WE, YOU KNOW, ARE OKAY, UH, PULLING THE RECOMMENDATION TO REMOVE IT. UH, JUST GIVEN THAT IT'S A VERY SMALL LOAN, UH, AND LOOKING FROM THE TOTALITY OF OUR PORTFOLIO, I THINK IT'S SOMETHING THAT, YOU KNOW, PORTFOLIO CAN, CAN MANAGE. UH, YOU KNOW, LIKE WE TALKED, I KNOW A LOT, LOT OF TIME THERE WAS A TIME, UH, SPENT ON THE, THE RISKINESS LEVEL. THAT'S SOMETHING THAT WE SPOKE, YOU KNOW, REMEMBERED, UH, DURING OUR VIEW OF A COMMISSION MEETING, UH, FROM UH, MARCH 6TH. SO, YOU KNOW, WE DID DID CERTAINLY TAKE THAT INTO ACCOUNT, UH, INTERNALLY. AND I THINK JUST LANDING ON THAT, IT IS A SMALL LOAN ONE AND TWO, THE PORTFOLIO AS A WHOLE IS HEALTHY. YOU KNOW, I THINK IT'S SOMETHING THAT WE CAN, UH, RECOMMEND THAT IT BE APPROVED, UH, FROM THE COMMISSION, UH, FROM THE STAFF PERSPECTIVE. OF COURSE WE LEAVE IT TO, TO AION COMMISSION. SO LIKE SENSITIVE NATURE OF THE REASON BEHIND THEM ASKING TO RELEASE IT. DID WE ONLY HAVE ONE CONDITION OR IS THERE A SECOND CONDITION ON THIS ONE? IT WAS ONLY THAT CONDITION. UH, THERE WAS THE ADDITIONAL PIECE THAT WE WASN'T PUT ON HERE, BUT IT WAS AN EXPECTATION THAT WE COMMUNICATE. IT WAS JUST LIKE TO PROVIDE REPORT UPDATES. I THINK IT WAS COMMISSIONER COHEN THAT SUGGESTED THAT. YEAH. KIND OF LIKE A LITTLE BIT MORE TLC OF, OF HAVING THEM CHECK IN WITH US MORE REGULARLY THAN PERHAPS MAY BE REQUIRED TYPICALLY. AND THAT WOULD REMAIN, THAT'S THERE NO OBJECTIONS TO THAT. YEAH, IF YOU'D LIKE, UH, YOU KNOW, WE'VE PUT IT IN THE FORMAL, THE FORMAL PIECE, BUT WE CAN INCLUDE THAT IF YOU GUYS ARE COMFORTABLE REMOVING THE G GUARANTEE AND INCLUDING THAT. AND THAT WOULD'VE STATED WE, IS THAT POSSIBLE TO STATE THAT IN THE MAYBE THE AGREEMENT SAYING THAT THERE WOULD BE AN EXPECTATION TO PROVIDE JUST, UH, UPDATES. MM-HMM. WELL HOW, HOW OTHER THAN THIS CITY OF LONG BEACH I, ANY CITY, IS IT A LITTLE, IS IT AN EASY UPDATE OR ARE YOU TALKING ABOUT LIKE FULL BLOWN, YOU KNOW, WHAT DOES THE UPDATE LOOK LIKE? WE CAN HAVE THAT CONVERSATION ON WHAT THE, YOU KNOW, THE, THE COMMITTEE SUBCOMMITTEE WOULD LIKE TO SEE, UH, AS AN UPDATE. YEAH. YEAH. WE, CONSIDERING THE SOLE PROPRIETOR, YOU KNOW, YOU GUYS, BUSINESS PEOPLE AS WELL, BUT WE DON'T WANT TO PUT BURDEN UNDER BURDEN. YOU KNOW, WE, LIKE YOU'RE TALKING ABOUT STRESS AND CHECK IN ADDITION TO BURDEN THAT'S GOING TO SET UP A SITUATION WHERE THEY'RE GONNA FAIL ON THAT BASIS. MM-HMM. I THINK QUARTERLY UPDATE IS NOT, UH, A NEW BURDEN. IT DEPENDS ON WHAT IT IS. IT DEPENDS ON WHAT IT IS. WHAT IS THE UPDATE IN THE UPDATE SALES, SALES REPORT? YEAH. I THINK THE INTENT BEHIND IT WAS TO PROVIDE A LITTLE BIT MORE RESOURCES AND OVERSIGHT TO HELP THEM MAYBE, UM, YOU KNOW, MANAGE SOME OF THE DAY TO DAY, NOT DAY TO DAY, BUT LIKE TRY TO BE MORE INVOLVED IN SOME OF THE OVERSIGHT SO THAT WE CAN HELP PROVIDE THEM RESOURCES. THAT'S A DIFFERENT STORY. YOU KNOW, I MEAN, IT WASN'T TO BE PUNITIVE IF YOU WERE, BUT IT WAS TO LIKE, GIVE A LITTLE MORE TLC MM-HMM. . AND THEY JUST LIKE WORKFORCE DEVELOPMENT DOLLARS TO HELP THEM HIRE SOMEONE IF THEY NEED SOMETHING BETTER. YEAH. SO I THINK BECAUSE THE PRODUCT THAT THEY'RE RE MAKING IS BRAND NEW, RIGHT? THEY DIDN'T HAVE ANY SELL ON IT. LIKE WHAT THEY WERE TRYING TO DO WAS THEY, THEY CLAIM TO HAVE CONNECTIONS WITH FESTIVALS AND THEY MIGHT BE ABLE TO USE THAT TO SELL THE FESTIVAL CODES. OUR CONCERN WAS THAT THERE WAS REALLY NO HISTORY OF LIKE PROOF OF CONCEPT. SO IF THERE WAS A WAY TO DO THESE POLITICLY, CHECK-INS, WE CAN AT LEAST INTERVENE WHERE WE CAN SAY, HEY, HERE'S THIS RESOURCE FOR YOU TO, TO UTILIZE. MM-HMM. . BECAUSE WE SEE THAT, YOU KNOW, IT HASN'T STARTED TO GAIN TRACTION YET. YEAH. THEY HAVE LIKE ONE PO YES. FOR ONE ORDER OF THEIR PRODUCT. AND THAT'S SO LIKE SUPER STARTUP. SURE. SHE DOES HAVE THIS OTHER TRACK RECORD. THAT'S WHY SHE HAS THESE THREE DIFFERENT ENTITY, YOU KNOW, HER LITTLE DBAS, SHE HAS, SHE HAS OTHER THINGS THAT SHE'S DONE AND YOU KNOW, BUT IT WAS GENERATING VERY LITTLE REVENUE, YOU KNOW, FIVE GRAND, 10 GRAND . SO THIS IS LIKE A WHOLE NEW, MUCH MORE AND YEAH. COMPLICATED BUSINESS, UH, PRODUCT TO PRODUCE. SO IT WAS JUST TRYING TO LIKE KEEP TRACK AND SEE IF THERE'S [01:00:01] ANY WAY WE COULD JUST YEAH. KEEP, KEEP A LITTLE CLOSER TABS AND AGAIN YEAH. PROVIDE THOSE RESOURCES. BUT I KNOW SHE HAS, UM, WORKED WITH, UM, A BUSINESS CONSULTANT FOR SURE. SHE, 'CAUSE SHE HAD A PRETTY EXTENSIVE BUSINESS PLAN AND LIKE, HAD DONE A BUNCH OF PROJECTIONS, BUT HER AND I WENT BACK AND FORTH ON THOSE PROJECTIONS BY A BIT. THEY WERE REALLY, REALLY OUTRAGEOUS. , LIKE MILLIONS, LIKE WITH THE DOUBLE M MILLIONS . UM, AND LIKE, JUST LIKE, OKAY, YOU'RE GONNA GO FOR FIVE GRAND TO LIKE 14 MILLION. LIKE, UH, I JUST, I DON'T KNOW, NOTHING IT, YOU KNOW, LIKE YEAH. SO WE WERE LIKE REALLY WANTED TO. SO THAT EVEN WAS A, THAT WOULD BACK AND FORTH A LOOK GOOD, A GOOD AMOUNT OF BACK AND FORTH WITH HER. UM, BUT YOU KNOW, SHE IS REALLY GOING HEAVY TO LIKE THE ONLINE SALES. SHE'S GOING TO DO PRE-ORDERS AND THE GOFUNDME TYPE OF THING. AND SO SHE, UM, IS ALSO USING LIKE A THIRD PARTY MANUFACTURER. SO USUALLY IT'S LIKE YOU HAVE TO HAVE THE ORDER TO BE ABLE TO PUT THE DOWN PAYMENT TO THE MANUFACTURER TO GET IT DONE. LIKE PO RIGHT. A PO YOU KNOW, SO AND SO SHE HAD ONE AND SO THAT WAS KIND, THAT WAS JUST, YEAH. I MEAN IT'S REALLY, REALLY A SMALL LOAN. RIGHT. BUT IT IS FINE. BUT 10 FEE. RIGHT. BUT YOU GUYS ARE BID THERE PEOPLE, I'D BE FINE REMOVING THE CONDITION. UM, IF WE CAN ADD IN JUST THE CHECK-IN AND, AND IT DOESN'T NEED TO BE OVERLY OWN ONEROUS. ONEROUS. IT JUST, THERE'S A WAY THAT WE CAN SEE THAT THE PLANE IS STARTING TO GO DOWN, THAT WE CAN INTERVENE ON THE PLANE, GO BACK UP. THAT DOESN'T NEED TO BE A FULL ON THAT WOULD IS SHE RECEPTIVE TO COACHING? SHE IS BECAUSE, UH, YOU KNOW, YOU WANNA GET THE PLANE SO IT DOESN'T GO DOWN. YEAH. LIKE YOU WANNA, YOU WANNA IT UP SO THAT, SO MAYBE SHE GETS COACHING LIKE, LIKE NOW BEFORE STARTS, BEFORE IT STARTS GETTING WOBBLY IN THE AIR. THAT'S WHY I WOULD LIKE TO FLY. YEAH. I GUESS THAT WOULD BE, AND WE ALWAYS ENSURE THAT WHEN WE ARE COMMUNICATING WITH THESE BUSINESSES THAT THEY HAVE A CONNECTION WITH SPDC. BUT YOU KNOW, PEOPLE DON'T, YOU KNOW, I HAVE TO SAY ENTREPRENEURS, NATALIE IS A BAD TRADE. YOU KNOW, THEY, THEY HAVE A TENDENCY, ESPECIALLY IN A DIVERSE COMMUNITY, NOT TO ASK FOR HELP. YES. THAT IS, THAT IS AN ISSUE. TRUE. THAT IS TRUE. OKAY. SO I THINK, UH, IN THESE SITUATIONS WE HAVE TO BE MORE REALLY PROACTIVE. PROACTIVE IN, IN, AS YOU'RE SAYING, GET MORE INTO THE WEEDS NOW, YOU KNOW, WHAT IS YOUR PLAN? WHAT CAN WE DO TO HELP YOU? ALL THINGS YOU WERE SAYING, I THINK THAT'S EXCELLENT THAT I THINK WE NEED TO DO A LOT MORE OF THAT ON THE FRONT END TO MAKE SURE THAT THEY DON'T E EVEN GETTING A SPACE. I THINK IT'S CRITICAL TO CONNECT THEM TO ONE OF OUR, UH, BUSINESS NAVIGATORS, A LOCAL NAVIGATORS. THERE'S ANOTHER PROGRAM YOU GUYS HAVE THAT WAS PROVIDING TECHNICAL ASSISTANCE TO OTHER TECHNICAL ASSISTANCE PROVIDERS TO SMALL BUSINESSES. AND SO THERE WAS LIKE A COHORT OF LIKE FOUR, FIVE BUSINESS NAVIGATORS. THAT'S A NAVIGATOR THING, RIGHT? YEAH. AND SO WE CAN CONNECT WITH THAT. UM, YEAH, APRIL PARK WOULD PROBABLY BE A GOOD OPTION. THAT'S WHAT I WAS THINKING. YEAH. AND YOU KNOW, I'M AN A**L INVESTOR MYSELF AND, AND A RED FLAG FOR ME ALWAYS WAS THEY'RE NOT INTERESTED IN TAKING INPUT. I MEAN, IT'S LIKE A BIG RED FLAG, YOU KNOW, FORGET IT. I'M NOT AGAINST WAY I LEARNED THAT FROM SCHOOL ART KNOX. SO, UH, , SO YOU WANT ENTREPRENEURS TO KNOW RIGHT. WHEN, ESPECIALLY WHEN THEY GET MONEY, UH, THAT THEY'RE EXPECTED TO ASK QUESTIONS. AND IF THEY DON'T ASK QUESTIONS, THEN WE HAVE TO BE EXPECTED TO GET INVOLVED AND HELPING THEM FIGURE OUT HOW TO ASK QUESTIONS, GETTING, MANAGING THEMSELVES THROUGH THAT PROCESS. YEAH, I THINK THE BUSINESS NAVIGATOR IS A GREAT ONE. AND THAT'S REALLY WHAT WE'RE TRYING TO DO IS FIGURE OUT HOW TO CONNECT PEOPLE WITH THE RESOURCES AND EXISTING ONES THAT THE CITY ALREADY HAS IN INFRASTRUCTURE AND HAS PROGRAMS UP AND RUNNING. UM, BECAUSE IT'S A LOT FOR JUST US OR LIKE SVDC, RIGHT. YOU KNOW, THEY'RE NOT, UH, SOMETIMES AS INVESTED, UH, VERSUS LIKE SOME OF THESE OTHER PROGRAMS THAT HAVE ACTUALLY HAD A LOT OF, UM, YOU KNOW, FUNDING FROM THE CITY AND RESOURCES PUT IN. OKAY. WHO KNOWS, YOU KNOW, I MEAN, SOME OF THESE THINGS WOULD TAKE OFF IF THEY JUST HAD ASKED ONE PERSON A QUESTION AND HAD ONE PERSON WITH A GOOD ANSWER. . OKAY, SO OUR VOTE GETS A VOTE ON WHETHER WE'RE GONNA TAKE HER OFF THE, THE, SO THE MOTION FOR RIGHT NOW IS TO DISCUSS THE REMOVAL. WE WOULD HAVE TO EITHER, UH, MAKE FRIENDLY AMENDMENT TO INCLUDE THE REMOVAL, UH, AS WELL AS ANY, UH, STIPULATION THAT YOU WANNA PLACE UPON THE REPORTING. YEAH. OKAY. CAN I MAKE THE FRIEND LINE, SO TO REMOVE THE CONDITION PLACED OFF OF, UH, TIFFANY'S LUCK, UM, BUT TO ALSO ADD, I DON'T KNOW WHAT I CALL THE NEW CONDITION. WELL, TO AGREE TO, I THINK TO RETAIN THE EXISTING CONDITION, THE OTHER EXISTING CONDITION FROM THE PREVIOUS APPROVAL. AND SO THAT WAS INCLUDED IN THE PREVIOUS YEAH. AND THE PREVIOUS, UH, RECOMMENDATION. OKAY. SO WE'RE [01:05:01] JUST REMOVING THE ONE CONDITION, WHICH IS THE, UH, PERSONAL REQUIREMENT. SO THEN, SORRY. I'M SORRY. DO I EVEN, CAN I JUST LEAVE THIS AS IS THEN? BECAUSE IF IT'S ALREADY, IF THAT PREVIOUS CONDITION ON THE REPORTING IS ALREADY THERE, AND THIS IS JUST SAYING TO REMOVE THE GUARANTEE, I DON'T NEED A IS A THING TO DISCUSS. IT'S JUST TO DISCUSS. I GOT IT. I'M SORRY. APOLOGIES. ALL RIGHT. SO I'LL MAKE THE FRIENDLY TO REMOVE IT AND YOU ARE THE MAKER OF THE MOTION, SO YOU HAVE AGREED TO THAT. UM, SECOND COMMISSIONER COHEN AS THE SECOND, DO YOU AGREE TO THE FRIENDLY AMENDMENT? YES. THANK YOU. YEAH, WE, I THINK WE SHOULD HAVE JUST, WE COULD TALK ABOUT THAT LATER, , BUT WE LAND WHAT WE NEEDED TO, YOU KNOW, WITH AS FAR AS MOTION IS CONCERNED HERE, SO, OKAY. UH, NO MEMBERS OF THE PUBLIC ARE PRESENT, SO, UM, ASK THE MEN FOLKS ARE CALL FOR A VOTE. COMMISSIONER? YES. UH, COMMISSIONER KINS? YES. COMMISSIONER TOYER. YES. MOTION CASE. THANK YOU VERY MUCH. AND THAT TAKES US TO FINISH THE ITEMS HERE. UH, HOLD. UM, YES, THAT'S TRUE. SO PUBLIC COMMENT. AND AGAIN, THERE'S NO ONE IN THE PUBLIC PRESENT TODAY. UH, SO THERE'LL BE NO PUBLIC COMMENT, BUT ANNOUNCEMENTS, UH, WE CAN START WITH THE COMMISSIONERS JUST ONLY BECAUSE I KNOW COMMISSIONER LATOYA, YOU HAD A QUESTION ANNOUNCEMENT. I DON'T KNOW IF YOU'RE ABLE TO INCLUDE THAT IN A PREVIOUS ITEM THOUGH, SO I JUST WANNA MAKE SURE YOU HAD THAT OPPORTUNITY. NO, DO WE, UH, SO MY QUESTION IS, DO WE INVITE THE APPLICANTS IN FOR THESE? NOT TYPICALLY, NO. ARE WE ALLOWED TO INVITE THE APPLICANTS IN? THAT IS GOOD. I WOULD SAY, WELL, GIVEN THAT THERE'S, IT'S OPEN TO THE PUBLIC, THEY CAN CERTAINLY COME MM-HMM, . BUT WE HAVE, BUT THEY CAN BE PRESENT FOR A VOTE AS WELL. SO THERE, I I THINK THAT'S THE THEY COULD, YEAH. I MEAN ANYONE COULD REALLY COME AND BE PRESENT FOR, FOR THIS MEETING AS A, AS A STANDS NOW GIVEN, UH, PENDING WHAT OUR SOLUTION TO BE ABLE DISCUSS THINGS MORE FREELY. CORRECT. WELL, YEAH, THAT IF WE COULD DO THAT, THEN I THINK THAT WOULD MAKE IT POSSIBLE FOR SEE THEM OR EVEN SEE THEIR PRODUCTS. I ACTUALLY ENJOY GETTING, UH, YOU KNOW, SEEING SOME OF THE DIFFERENT PRODUCTS THAT THEY WOULD SELLING. MM-HMM. BECAUSE WE, WE, WE CAN PROMOTE THEIR STUFF TOO, OF COURSE, RIGHT? MM-HMM, . YEAH, WE CAN LOOK INTO THAT ONCE WE HAVE, UH, LIKE OUR CONTINUED DISCUSSION WITH THE CITY POST OFFICE AND WE CAN SEE WHERE WE WENT ON THAT PIECE. AND THEN THE OTHER QUESTION I HAD, SO SINCE THIS IS RECORDED, THIS WILL BE SHOWN TO THE PUBLIC. THE, I KNOW IN THE PAST, SORRY, YOU KNOW, IN THE PAST WHEN WE'VE REVIEWED THESE, UH, BLOOD APPLICATIONS, THERE'S BEEN SENSITIVITY AROUND THE INFORMATION THAT'S IN IT. BUT IF WE'RE TALKING ABOUT IT IN PUBLIC AND IT'S REPORTED, IS THAT STILL THE SAME OR IS THAT NOW, DOES THAT MAKE SENSE? IF THE QUESTION, I GUESS THERE'S CREDIT, CONSIDER CREDIT SCORE ATION. YEAH, WE'RE TALKING ABOUT THEIR, WE'RE TALKING ABOUT THEIR SALARY, WE'RE TALKING ABOUT THEIR INCOME. WE'RE TALKING ABOUT THEIR CREDIT SCORE. MM-HMM. . AND THAT'S RECORDED FOR THE PUBLIC GOOD. SO THE PUBLIC COULD GO BACK AND LISTEN TO THIS. IS THAT ALLOWED? IS THAT OKAY, BECAUSE THIS IS AN OPEN PUBLIC MEETING. WE HAVE TO TAKE THE MINUTES AND WE HAVE TO RECORD THEM. WE'RE DISCUSSING SOLUTIONS TO ALLOW MORE, UM, FREEDOM WHEN ASKING CERTAIN QUESTIONS. THAT'S THE QUESTIONS. UH, BUT WE JUST HAVEN'T COME UP WITH SOLUTIONS YET. OKAY. SO DO WE THEN, I GUESS THIS GOES BACK TO THE TEAM FOR NOW. ARE WE COMMUNICATING TO OUR APPLICANTS THAT THIS IS AN OPEN MEETING TO THE PUBLIC AND THAT THEY ARE BEING RECORDED AND WE ARE TALKING ABOUT THESE THINGS? SO IF THEY'RE CONCERNED THAT, HEY, MY CREDIT SCORE IS BEING TALKED ABOUT AND SOMEBODY CAN GO IN AND WATCH THE REVOLVING LOAN COMMITTEE VIDEO, THEY CAN SEE WHAT THAT IS. THEY DO. THEY, THEY DO KNOW THAT THIS GOES THROUGH THE REVOLVING. THEY KNOW THAT IT GOES THROUGH THE SUBCOMMITTEE AND THAT IT IS PUBLIC. HOWEVER, I WILL SAY THAT, YOU KNOW, I'VE BEEN, UM, AS A CONSULTANT FOR THE CITY FOR MORE THAN A DECADE. WE HAVE NOT DONE A VIDEO, UM, MEETING BEFORE THIS ONE THAT I KNOW THAT WAS ACTUALLY BROADCAST AND PUT ON, UH, PREVIOUSLY IT WAS JUST A AUDIO RECORDING AND I DON'T BELIEVE THAT THAT AUDIO RECORDING WAS EVER POSTED, JUST THE MINUTES. SO I THINK THERE'S A LITTLE BIT POTENTIAL OF, UH, DIFFERENT PROTOCOL THAT WAS MAYBE FOLLOWED PREVIOUS TO WHAT'S HAPPENING NOW. AND I THINK MAYBE THAT'S THE DISCUSSION YOU GUYS ARE HAVING INTERNALLY. BUT IT IS, TO MY KNOWLEDGE, I DON'T BELIEVE THE PREVIOUS RECORDINGS WERE POSTED. UM, YEAH, THERE WERE NOT JUST THE INFORMATION. SO IT WAS MORE OF A CLOSED SESSION. YEAH, IT'D BE PREVIOUSLY AND YOU GUYS HAVE BEEN ON, SO, YOU KNOW, SO THAT'S JUST THAT, THAT WOULD BE MY ONE COMMENT TO, TO POTENTIALLY BRING BACK. UM, SO THERE'S DISCUSSION ABOUT CLOSED SESSION, BUT IT'S NOT IN THE BYLAWS FOR THE ECONOMIC DEVELOPMENT COMMISSION THAT THEY CAN HAVE A CLOSED SESSION. GOTCHA. [01:10:01] SO THAT'S E-COMMERCE. SO I THOUGHT THAT WE COULD VOTE THE COMMISSION, THE WHOLE COMMISSION COULD VOTE THAT WE HAVE A CLOSED SESSION OR EVEN A WORKING GROUP THAT WOULD BE PUBLIC. WE, WE COULD CLASSIFY THIS AS A WORKING COMMITTEE VERSUS A LIKE A STANDING YEAH, A STANDING COMMITTEE BECAUSE STANDING COMMITTEES DON'T HAVE TO, NOT A WORKING COMMITTEE. I NOT WORDS WORKING COMMITTEE. OH, SO IT WOULD I SEE WHAT YOU MEANT. WORK WORKING. IT WOULD NOT, THE CITY ATTORNEY WOULD NOT ALLOW THAT BECAUSE IT'S A RECURRING, UM, BUSINESS THAT THE COMMISSION HAS BEEN GIVEN THE AUTHORITY TO DO SOMETHING THAT WOULD HAPPEN IF IT WAS A, IF IT COULD BE A WORKING COMMITTEE, IF THERE WAS A TEMPORARY DEFINITIVE END THEN CLOSE SESSION. I THINK THE, THE, THE LENDERS, I MEAN THIS IS, YOU KNOW, I WOULDN'T WANT MY BUSINESS, YOU KNOW, OUT IN THE PUBLIC. UH, AND I THINK THAT'S WHY IN THE PAST IT WAS AGAIN, AUDIO RECORDED BUT THEN NOT POSTED. UM, BUT THE MINUTES AND LIKE THAT KIND STUFF. AND THEN I KNOW THAT AT LEAST SOME POINT THERE WAS REDACTED VERSION, RIGHT? THERE WAS OF THE REPORTS BEING POSTED AS WELL. I'VE GONE BACK AND THERE'S VARIOUS LEVELS OF DOCUMENTATION IN THE MEETING. SO LIKE, LIKE THEY EMAILED DOCUMENTS TO US. ALL OF 'EM WERE REDACTED AND THEN IT WASN'T UNTIL WE, IT WASN'T UNTIL WE ACTUALLY WENT TO THE MEETING THAT WE'RE ACTUALLY SEEING MM-HMM, THE CONFIDENTIAL INFORMATION, CREDIT SCORES AND ALL THE OTHER US YOU KNOW, ITEMS. SO QUESTIONS. SO LET'S JUST BRING IT BACK TO THE MEETING BECAUSE WE ARE UNDER ANNOUNCEMENTS RIGHT NOW. WE'RE CORRECT. I THINK WE ARE NOT ALLOWED TO HAVE DISCUSSION DURING ANNOUNCEMENTS. GOT IT. UM, SO YOU JUST OR WANNA STATE OUR, OUR POINTS AND THEN, UH, MOVE ON TO THE, THE NEXT AND THEN IF YOU HAVE ANY QUESTIONS, THEY CAN BE EMAILED TO STAFF AND THEN STAFF CAN RESPOND TO YOUR QUESTION DIRECTLY. WELL, I THINK YOU, OUR, OUR CONCERN. YEAH, NO THANKS. WE GET THAT RESOLVED SOONER THAN LATER, LIKE BEFORE THE NEXT MEETING THAT WE HAVE. YEAH. WE'LL, UH, COMMUNICATE TO YOU GUYS KIND OF WHERE WE LAND AT THAT WITH, UH, OUR PARTNER DEPARTMENTS BECAUSE IT IS A BALANCE. YOU KNOW, THESE ARE PUBLIC FUNDS, SO THERE SHOULD BE SOME LEVEL OF TRANSPARENCY, BUT ALSO YOU ARE, WE ARE REVIEWING KNOW PERSONAL INFORMATION. SO WHERE'S, YOU KNOW, HOW DO, HOW DO WE NOT UPSET GROUND BUT THEN ALSO UH, YOU KNOW, MAKE SURE THAT WE OBSERVE PEOPLE'S PRIVACY WHILE PROVIDING, YOU KNOW, LOANS WE FROM PUBLIC FUNDS. SO VERY NICE LITTLE UH, ISSUE AREA HERE. , WELL I MEAN OTHER, OTHER, OTHER BOARDS THAT HANDLE, I THINK, YEAH, I THINK MAYBE. YEAH. AND IT'S JUST ALSO SCHOOL BOARD FOR EXAMPLE. UH, THEY HAVE CLOSED SESSION TO UH, DISCUSS VERY CONFIDENTIAL EMPLOYEE. MM-HMM. ISSUES. YEAH, WE HAVE CLOSED SESSION TOO. THE COUNCIL DOES. SO I THINK THAT'S PROBABLY WOULD BE A POTENTIAL LIKE REAL SOLUTION. UH, IT'S JUST THAT WE HAVEN'T HEARD BACK A HUNDRED PERCENT WHAT IS, BECAUSE IT'S NOT SPECIFIED IN YOUR BYLAWS THAT YOU CAN HAVE A CLOSED SESSION. CAN WE HAVE A CLOSED SESSION? BUT DIDN'T SAY WE CAN'T EITHER. THAT IS TRUE AND THAT'S WHY WE LOVE AN ENTREPRENEURIAL SPIRIT . ABSOLUTELY. OKAY. WE'RE JUST TRYING TO PROTECT THE STATE. YEAH. KNOW. WE APPRECIATE THAT. WE APPRECIATE THAT. SO, UH, ALRIGHT. ANY FURTHER, IF WE HAVE ANY FURTHER ANNOUNCEMENTS FROM, FROM STAFF SIDE OR MORE FOR GOOD JOB. GOOD JOB, USUAL. FANTASTIC. YEAH. AFTER. AFTER. OKAY. ALRIGHT. SO I HAVE NO ANNOUNCEMENTS. UH, SO WE'LL UH, I GUESS WRAP IT UP AND ADJOURN. THANK YOU. THANK YOU. OKAY. I HAVE ANY MORE QUESTIONS, ? YEAH. YEAH. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.