[00:00:05]
YEAH, THIS IS OUR KIND OF LIKE KICKOFF ASSOCIATION.
SO WE HAVE DID YOU IT OUT? NO.
YOU KNOW, JUSTIN, GO AHEAD AND GET STARTED.
YOU'RE NOT, I'M JUST GONNA RUN TO MY DESK FOR ANOTHER PHONE REAL QUICK.
THE LAST ONE THAT COMES INTO THE MEETING YOU ARE, YOU CAPTURE WHAT, 23 OR 24? IT'LL BE 24, YEAH.
YOU'LL UH, YOU BOTH WILL SEE A LOT OF MEETING, UH, EMAILS COMING FROM ME.
YOU GOT TRAININGS, REQUESTS COMING BOTH OF YOUR WAYS.
THERE'S A CALIFORNIA DOWNTOWN ASSOCIATION FOR THE WHOLE STATE.
SEE, BECAUSE OBVIOUSLY YOU'RE ALSO THE LONG BEACH.
IT'S A STATEWIDE ASSOCIATION FOR ALL BEDS.
IT'S A SECOND JOB THAT I DID NOT, I WAS SAY WE DON'T HAVE AN EXECUTIVE DIRECTOR.
ONCE, AS I SAYING GOODBYE, THE ETHICS COMMISSIONER LOOKING EVERYBODY LIKE, YOU KNOW, LIKE, THANK YOU GUYS SO MUCH.
IT'S BEEN GREAT WORKING FOR YOU FOR TWO YEARS.
AND WITH, AND NATALIE, THANK YOU SO MUCH.
AND I WAS LIKE, SHE STOOD RIGHT BACK AT ME IN A VERY MEANINGFUL WAY.
AND THEN JT HOLLY WAS LIKE, UH, THAT'S NOT HER NAME.
YOU WERE SO, I WAS JUST LIKE,
SO IT COULDN'T TAKE US, YOU KNOW, TOO, TOO LONG.
BUT WE HAVE EVERYONE HERE THANKFULLY TO PER THROUGH IT AND ASK ANY QUESTIONS.
SO WE LEFT NATALIE, VANESSA WAS, WHEN WE GET TO START.
SO I'D LIKE TO CALL THE ECONOMIC DEVELOPMENT COMMISSION REVOLVING LOAN SUBCOMMITTEE MEETING TO ORDER FOR MARCH 6TH, 2024.
MADAM CLERK, PLEASE CALL THE LOWER ROLL COMMISSIONER COPE.
SO ITEM NUMBER ONE ON THE REGULAR AGENDA IS A RECOMMENDATION TO APPROVE THE MINUTES FOR THE ECONOMIC DEVELOPMENT COMMISSION INVOLVING ONE FUND COMMITTEE MEETING HELD ON THURSDAY, OCTOBER 26TH, 2023.
UH, DO I HAVE A MOTION ON THIS ITEM? SO MOVED.
UM, THERE NEEDS TO BE AN AMENDMENT TO THE MINUTES.
WAS CHAIR LARKINS HERE? NO, HE WAS NOT.
COMMISSIONER'S PRESIDENT SAYS LARKINS.
SO WE MAY WANT TO STRIKE THAT FROM THE RECORD.
AND THEN, AND THEN THE REST IT SAYS ABSENT FOR THE, OKAY, MR. PRESENT.
SO I HAVE A MOTION TO A APPROVE RECOMMENDATION THAT AMENDMENT TO, UH, REMOVE COMMISSIONER RECORDS FROM THE ATTENDANCE.
IN THE BEGINNING SECTION IT SAYS, COMMISSIONER PRESENT AND THE REST IS CORRECT, THOUGH ON THE VOTING RECORD.
AND IS THERE ANY PUBLIC COMMENT? NO ONE'S HERE.
ALRIGHT, SO, ALL IN FAVOR? AYE.
I'M GONNA OPPOSE THIS, THANKFULLY.
SO, ITEM NUMBER TWO IS A RECOMMENDATION TO APPROVE THE REVOLVING LOAN PHONE APPLICATION IN THE AMOUNT OF $15,000 FOR TIFFANY LOVE, DBA LOVE LARINE, TRL MEDIA AND POSITIVE MAGAZINE.
LOCATED AT 38 31 ATLANTIC AVENUE, LONG BEACH, CALIFORNIA.
AND I'LL WALK PASS THAT ON TO ADRIAN.
ALRIGHT, BEFORE WE MOVE FORWARD, DO WE HAVE A MOTION TO APPROVE THE BABY ITEM? WE NEED A MOTION TO DISCUSS BEFORE WE OH, YES.
WE WE HAVE A, THERE'S A PROBLEM THOUGH.
WELL, I CAN'T, THERE'S, THERE'S A QUORUM OF TWO.
[00:05:01]
I JUST BECAUSE IT'S LOCATED IN YOUR DISTRICT, I DIDN'T THINK THAT THAT CONSTITUTED A CONFLICT OF INTEREST UNLESS YOU LIKE KNOW THAT PERSONALLY HAVE INVESTED IN THE BUSINESS.UM, I DON'T KNOW, HAVE WORKED WITH THEM PERSONALLY.
DOES IT AFFECT YOUR PROPERTY VALUE OR ANYTHING LIKE THAT? YEAH.
JUST WANNA MAKE SURE IT SHOULD, YEAH.
IT SHOULDN'T BE AN ISSUE, I BELIEVE ONLY BECAUSE WE WOULD HAVE TOO MANY THAT ARE IN ANYONE'S DISTRICT THAT MAY BE, UH, COMMISSIONER ON, ON THIS COMMITTEE.
I JUST, BUT I SAW THE ADDRESS FOR SAYING THAT.
AND I JUST WANNA MAKE SURE THAT THERE IS NO CONFLICT.
I WOULD HAVE TO DEFER TO THE CITY ATTORNEY WHO'S NOT HERE.
SAY A HUNDRED PERCENT FOR SURE.
BUT AS I BELIEVE, AS LONG AS IT DOESN'T, YOU DON'T HAVE ANY FINANCIAL INTEREST.
NO, AND, AND, AND I DON'T, I DON'T KNOW HER.
OR LIKE IF YOU'RE PERSONAL FRIENDS OR RELATED WITH THEM OR YEAH.
FINANCIAL INTERESTS OR SOMETHING LIKE THAT.
THOSE ARE ALL CONFLICT OF INTERESTS, BUT OKAY.
WE JUST WANTED TO BRING THAT UP.
JUST TRYING TO BE ON THE LEVEL, YOU KNOW,
MOTION TO DISCUSS ITEMS OR FIRST? FIRST.
WE NEED TO HAVE A MOTION TO DISCUSS THE DISCUSS.
I THINK WE HAVEN'T DONE THAT IN THE PAST.
THAT'S WHY
WE NEED A LITTLE HELP WITH THE PROCESS.
NEED TO HAVE ANOTHER MOTION AFTER YOU DISCUSS.
AS LONG AS YOU AGREE WITH THE MOTION THAT YOU ARE HAVE PRESENT, IT'S ON THERE NOW.
WELL, UM, SO TIFFANY, LOVE DOING BUSINESS AS LOVE TRAIN.
THAT'S THE NEW ENTITY THAT WE'RE KIND OF HERE TO DISCUSS TODAY.
BUT SHE DOES HAVE TWO OTHER, UM, DBA NAMES ALREADY.
FICTITIOUS BUSINESS NAMES TRL MEDIA AND POSITIVE MAGAZINE.
UM, SO SHE'S, SHE'S KIND OF LIKE A YOUTUBER IN THE HEALTH AND WELLNESS SPACE.
UM, SOME OF THAT IS, UM, COVERED IN THE NARRATIVE.
YOU KNOW, SHE'S BEEN DOING THAT SINCE 2001 FOR QUITE SOME TIME.
SHE HAS, YOU KNOW, A SOLID BASE OF FOLLOWERS, UM, VIA HER POSITIVE MAGAZINE, UM, ENTITY.
UM, AND SHE'S KIND OF COMBINING THOSE, THAT SORT OF WELLNESS, YOGA, MEDITATION, FOLLOWING WITH THIS NEW PRODUCT.
AND SO LOVE TRAIN IS A PLAY ON THE WORD LOVE TRAIN
SO IT IS AN INFLATABLE, PORTABLE, UH, TOILET IS WHAT SHE HAS, UM, GOTTEN A PRELIMINARY PATENT FOR.
AND SHE'S GONNA START PRODUCING THEM, MANUFACTURING THEM.
SHE HAS A THIRD PARTY MANUFACTURER THAT SHE'S USING RIGHT NOW THAT SHE PROVIDES THE DESIGN AND THE PATENT AND ALL OF THAT AND THE MATERIALS.
AND THEN THEY BASICALLY PRODUCE IT FOR HER.
EVENTUALLY SHE DOES WANT TO PURCHASE EQUIPMENT AND LIKE DO HER OWN MANUFACTURING.
UM, BUT THIS IS JUST A VERY SMALL LOAN TO SORT OF GET HER OFF THE GROUND AND KIND OF HELP HER FULFILL, UM, SOME OF HER FIRST ORDERS SO SHE CAN KIND OF, I THINK, FURTHER TEST THE VIABILITY RIGHT.
SO INSTEAD OF LIKE INVESTING HUNDREDS OF THOUSANDS OF DOLLARS, ALL THIS EQUIPMENT AND, UM, AN ACTUAL MANUFACTURING SPACE AND EVERYTHING, SHE'S JUST, YOU WANTED A SMALL AMOUNT TO GET STARTED TO PURCHASE SOME BASIC EQUIPMENT, SOME INVENTORY, AND TO KIND OF LIKE FUND THE MATERIALS NECESSARY FOR THE FIRST ORDER.
SO SHE DOES HAVE AN ORDER FOR $9,000 RIGHT NOW, WHICH WOULD BE THREE ADULT SIZED UNITS, THREE CHILD SIZED UNITS.
AND THEN LIKE, THERE'S LIKE TRASH DISPOSAL UNITS THAT GO WITH IT.
UM, AND THEN THERE'S LIKE BAGS, COMPOSTABLE BAGS KIND OF, AND THEN A PRIVACY TENT.
THERE'S LIKE ALL THESE DIFFERENT, UM, WHAT'S THE WORD? LIKE ANCILLARY PRODUCTS THAT GO WITH IT.
SO I DO QUITE A BIT OF OUTDOORING AND LIKE CAMPING AND STUFF.
AND SO THERE'S A DIFFERENT PRODUCT THAT'S KIND OF JUST LIKE A, UM, A BUCKET, RIGHT?
AND YOU LINE IT WITH A TRASH BAG AND THEN YOU CAN LIKE SIT ON IT, YOU KNOW, AND YOU CAN PUT IT ANYWHERE.
AND THEN YOU USUALLY PUT LIKE, UM, THERE'S LIKE SOME KIND OF AN ODOR DEFERRAL LIKE SYSTEM WE ALL USE LIKE, UM, UH, KITTY LITTER.
YOU PUT THAT ON TOP AND IT MAKES IT NOT SMELL ANYWAYS.
YOU JUST TAKE OUT THE BAG AND YOU DISPOSE THAT AT THE END.
UM, I FORGOT WHAT THAT'S CALLED.
THEY SELL 'EM AT, OR REI AND IT'S, THEY'RE LIKE, YOU KNOW, YOU'RE GOING, YOU BAND LIFE OR CAMPING YOU MAKE AT A FESTIVAL OR SOMETHING AND YOU DON'T WANNA USE THE PORTA POTTY OR THERE'S NOT ANY OTHER, UM, FACILITIES AVAILABLE.
AND SO THAT'S KIND OF HER CONCEPT.
HERS IS INFLATABLE, IT'S LIKE FULL SIZE, SO YOU'RE
[00:10:01]
NOT LIKE DOWN ON THE GROUND.YOU CAN SUPPOSED TO BE VERY SIMILAR TO LIKE PORTA POTTY AS FAR AS LIKE COMFORTABILITY.
SO YOU'D LIKE BLOW THIS THING UP AND SAY YOU LINE IT WITH A BAG AND SHE HAS SOME SOLUTIONS THAT HELP THE, YOU KNOW, KEEP IT SANITARY WITH ALL THE ODORS AND THAT KIND OF THING.
AND THEN AT THE END YOU, YOU KNOW, THROW AWAY THE BAG AND DEFLATE IT.
YOU FOLD IT UP AND YOU'RE READY TO GO.
SO SHE HAS A SCHOOL RIGHT NOW THAT IS THE ONE THAT MADE THE ORDER THAT HAS A LOT OF, UM, MODULAR UNITS AND THEY DON'T HAVE ENOUGH FACILITIES.
AND ALSO THEY'RE LIKE NEXT TO A PARK IN THE PARK.
THEY DON'T REALLY LIKE THE FACILITIES OF THE PARK AND THAT KIND OF THING.
SO THEY WANNA BE ABLE TO BRING THESE WITH 'EM.
IT'S KIND OF LIKE AN ALTERNATIVE OUTDOOR SCHOOL TYPE THING.
IT'S NOT LIKE A PUBLIC SCHOOL IN THE UNIFIED DISTRICT.
UM, BUT THAT IS CIRCLE THE CIRCLE LB, I DON'T KNOW IF YOU GUYS HAVE HEARD OF IT.
IT SOUNDS LIKE A SCHOOL THAT I'VE HEARD OF IN SANTA BARBARA
UM, ANYWAYS, SO THAT'S KIND OF HER CONCEPT.
UM, SHE HAS SOME QUITE A BIT OF RESEARCH ON IT.
LIKE I SAID, SHE HAS THE PROVISIONAL PATENT.
SHE ALSO HAS ESTABLISHED THAT RELATIONSHIP WITH A MANUFACTURER.
UM, AND SHE HAS OTHER, UM, PARTNERS, LIKE VENDORS, LIKE HER SUPPLIERS.
IT'S LIKE THIS VERY THICK, LIKE DOUBLE STITCH CANVAS.
SO IT'S KIND, IT'S VERY SIMILAR ACTUALLY TO STANDUP PADDLEBOARDS THAT ARE INFLATABLE.
I DUNNO IF YOU GUYS, I HAVE TWO OF THOSE MYSELF AND I LOVE 'EM.
BUT SO YOU PUMP IT UP AND IT'S VERY THICK AND IT LIKE, ONCE IT'S PUMPED, IT'S LIKE HARD.
MM-HMM
IT BECOMES VERY STABLE, I GUESS IS MY POINT.
UM, UNDER THE PRESSURE, WHICH IS ALSO WHY SHE NEEDS TO PROVIDE THAT AIR PROP.
'CAUSE IT'S HARD TO GET INTO THAT PRESSURE UNLESS YOU ACTUALLY, OKAY.
SO SHE HAS, UM, SHE SUBMITTED A BUNCH OF FINANCIALS.
UM, SHE HAS VERY LITTLE EXISTING BUSINESS REVENUE FROM HER OTHER, UM, ENDEAVORS.
SHE, UM, YOU KNOW, INDICATED THAT, YOU KNOW, PREVIOUS TO THE PANDEMIC IN RECENT YEARS IT WAS, YOU KNOW, MORE LIKE 40 OR 50,000 YEAR SHE WAS GENERATING FROM HER YOUTUBE REVENUE.
2022 WAS ABOUT 5 50, 500 5600.
UM, AND SO FOR 2023, UM, SHE DID SUBMIT NUMBERS THAT WERE ABOUT 13,000.
THAT DOESN'T INCLUDE HER FIRST ORDER, BUT SHE HAS LIKE IN AN ACCOUNT RECEIVABLE.
UM, BUT YOU'LL SEE ON THE BALANCE SHEET, THE 8,800 AND ACCOUNTS RECEIVABLE FOR 12 31, 20 23 IS HER ORDER, BUT SHE'S WAITING TO BILL.
UM, AND SHE DOES OWE THE MANUFACTURER ABOUT 2,500 TO GET THAT ORDER GOING.
UM, BUT YOU KNOW, SHE AND I WENT BACK AND FORTH.
SHE HAD SUBMITTED SOME VERY CRAZY PROJECTIONS AT FIRST.
LIKE SHE WAS LIKE GONNA DO $8 MILLION AND ALL THIS.
AND I WAS LIKE, OKAY, WE GOTTA DIAL THIS BACK.
AND SO SHE DID WORK WITH THE SPDC.
I TOOK QUITE A BIT OF TIME WORKING WITH HER ON PROJECTIONS AND TALKING ABOUT FEASIBILITY.
AND YOU KNOW WHAT, IF YOU JUST GOT LIKE 10 ACCOUNTS LIKE THIS SCHOOL OR, YOU KNOW, SIMILAR, UM, BUT LIKE, SHE'S LIKE YOGA, WELLNESS, RETREATS, FESTIVALS, YOU KNOW, THOSE ARE KIND OF SOME OF HER POTENTIAL CLIENTS AND WAYS THAT HER PRODUCT I THINK WOULD BE REALLY APPLICABLE.
UM, SO, YOU KNOW, WE GOT TO, YOU KNOW, SHE THINKS, YOU KNOW, 300,000 IN THE FIRST YEAR, FOUR 50 IN THE SECOND YEAR SEEMS PRETTY REASONABLE.
AND AGAIN, I DID QUITE A BIT OF BACK AND FORTH WITH HER ON THAT BEFORE WE BROUGHT THESE PROJECTIONS, UM, TO YOU AND, AND THIS TRANSACTION.
SO, UM, SHE IS EMPLOYED OUTSIDE OF THE BUSINESS.
SHE WORKS NIGHTS, UH, A HOTEL CHAIN, LIKE FRONT DESK TYPE OF THING.
UM, AGAIN, I VERIFIED, YOU KNOW, HER POSITIVE MAGAZINE STUFF.
YOU GO ON YOUTUBE, SHE'S, SHE, SHE'S HIGH UP ON THE CLICKS.
UM, YOU KNOW, SHE DOES LIKE YOGA VIDEOS AND LIKE MEDITATION VIDEOS AND STUFF.
SO SHE'S, SHE SEEMS TO KNOW, YOU KNOW, WHAT SHE'S DOING.
UM, THEY ARE NOT MARRIED LEGALLY, UM, BUT THEY DO SHARE A CHILD TOGETHER.
AND SO THAT'S ACTUALLY THE ADDRESS THAT SHE'S USING AS HER BUSINESS ADDRESS.
THE ONE THAT'S ON ATLANTIC AVENUE.
THAT, SO THAT CLARIFIES MY CONCERN BECAUSE ACTUALLY THE FIX MY PC, UM, ADDRESS.
AND SO HER HUSBAND, IT'S, IT'S NOT HER HUSBAND.
I KEEP WANTING EVEN CALL HIM HER HUSBAND BECAUSE THEY LIVE TOGETHER.
UM, THEY HAVE TRAVELED TOGETHER.
HE IS DEFINITELY HELPING SUPPORT HER 'CAUSE HER, HER PERSONAL INCOME, YOU KNOW, AS YOU CAN SEE LIKE ON THE, WHAT PAGE IS THAT? PAGE FIVE OF EIGHT, HER ANNUAL INCOME, YOU KNOW, SO 2022, SHE ONLY HAD, YOU KNOW, JUST UNDER 18 K IN WAGES.
UM, AND A LITTLE BIT OF THAT SCHEDULE C INCOME FROM HER YOUTUBEING WAS 5,600.
SO, YOU KNOW, SHE'S, SHE'S LOW INCOME BY ALL STANDARDS.
[00:15:01]
LIKE HOW ARE YOU SUPPORTING YOURSELF? MM-HMM.AND SO, YOU KNOW, THAT'S WHY I DIDN'T HAVE ANYTHING LISTED FOR RENT OR MORTGAGE.
UM, I JUST, IT LISTED A LITTLE BIT OF PERSONAL LIVING EXPENSES.
SO BASICALLY HER PARTNER, UM, TAKES CARE OF THE RENT AND PRETTY MUCH ALL THE LIVING EXPENSES FOR BOTH OF 'EM.
UM, AND SO HER INCOME IS JUST TO SUPPORT HERSELF AND YOU KNOW, I THINK ANYTHING THAT SHE NEEDS FOR HER CHILD.
UM, SO THAT, AND SO I DID ASK IF HE WOULD PERSONALLY GUARANTEE THE LOAN.
UM, AND SHE WAS RESISTANT BECAUSE SHE FEELS LIKE THEY LIKE TO KEEP THEIR BUSINESSES SEPARATE.
I BELIEVE HE ALSO LIKE FIXED MY PC, HE'S ALSO HIS SOLE PROPRIETOR, I BELIEVE.
SO IT'S HIM DOING BUSINESS AS, BUT I DID MENTION THAT THAT WOULD BE PROBABLY ONE OF THE THINGS THAT THE COMMITTEE MIGHT WANT TO RECOMMEND OR REQUIRE.
UM, IF THEY WERE MARRIED, BECAUSE IT'S A COMMUNITY PROPERTY STATE, CALIFORNIA, WE WOULD DEFINITELY REQUIRE HIS PERSONAL GUARANTEE, ESPECIALLY BECAUSE HIS SUPPORT OF THE FAMILY KIND OF REPRESENTS A SECONDARY INCOME SOURCE AND ALLOWS, YOU KNOW, HER TO REALLY NOT HAVE TO DRAW VERY MUCH FROM THE BUSINESS BECAUSE SHE HAS THIS OUTSIDE SUPPORT.
AND SO IF SHE DIDN'T HAVE THAT, THEN IT, THIS, THE FEASIBILITY OF THIS REALLY GOES DOWN MM-HMM.
SO IN ORDER TO SECURE THAT, USUALLY YOU HAVE THAT PERSON GUARANTEED.
UM, THE OTHER FACT THAT YOU'LL SEE HERE WHY THAT MIGHT OR MIGHT NOT BE SOMETHING THAT YOU GUYS WANNA CONSIDER, UM, IS HER CREDIT OR LIKE LACK THEREOF.
SO WE DID GET A, A CREDIT REPORT, BUT SHE LITERALLY HAS NO CREDIT.
SHE DOESN'T, IN A WAY IT'S LIKE A GOOD THING, RIGHT? SHE'S HAVE A TON OF DENT, YOU KNOW, AND SHE HASN'T EVER, UM, YOU KNOW, DEFAULTED ON ANYTHING BECAUSE SHE'S LIKE VERY CASH BASED.
AGAIN, SHE'S, SHE'S A LITTLE ALTERNATIVE BUT KIND OF GOES WITH HER VIBE OF LIKE YOGA AND MEDITATION.
LIKE SHE'S LIKE NOT TRYING TO BE PART OF IT.
SHE'S TRYING TO BE OFF THE, YEAH.
SO SHE, WHEN I ASKED HER, SHE WAS LIKE, I JUST DON'T PARTICIPATE IN THAT.
BUT AGAIN, THE LUXURY OF HAVING SOMEBODY SUPPORT HER AS WELL.
SO LIKE, I'M SURE HE, SHE, UM, THAT'S A GOOD QUESTION.
SHE IS FORGET, UM, OLDER THAN ME.
LATE FORTIES MAYBE EARLY FIFTIES.
YOU THINK I 2040S PICTURE? SHE, SHE'S DEFINITELY MIDDLE AGED AROUND AND I FEEL LIKE HER CHILD IS IN THE LIKE 10-YEAR-OLD 10 SHE LOOK, YEAH.
SHE LOOKED, YEAH, I THAT'S I'M SAYING LIKE LATE FORTIES.
VERY YOUNG FROM MY RECOLLECTION.
JUST FROM TALKING TO HER A COUPLE WEEKS AGO.
SHE'S, SHE'S, SHE'S NEAR MIDDLE AGE.
SO, UM, WE, WE DO HAVE THAT INFORMATION 'CAUSE IT'S SOMEWHERE IN THE FILES YEAH.
PUT THAT IF YOU GUYS NEED TO HAVE IT, WE GET IT FOR YOU.
BUT, AND SO ANYWAYS, WE DID GET A LEASE AGREEMENT BETWEEN FIXED I PC AND HER LIKE ALLOWING HER TO USE THAT SPACE.
BUT FOR ALL LIKE PURPOSES, YOU KNOW, SHE'S A HOME BASED BUSINESS.
SHE'S OPERATING MOSTLY OUT OF HER HOME.
SHE USES THE FIX MY PC SPACE AS NEEDED FOR LIKE MEETINGS AND THINGS LIKE THAT.
UM, AND BECAUSE SHE'S GOING TO USE A THIRD PARTY MANUFACTURER, SHE'S PRETTY MUCH STILL GONNA BE HOME BASED FOR LONG TERM BUSINESS PLAN THAT SHE DID SUBMIT DOES INCLUDE LIKE GETTING A COMMERCIAL SPACE AND BUYING EQUIPMENT AND DOING SOME OF THE MANUFACTURING HERSELF.
UM, BUT THAT'S, I THINK DOWN THE ROAD, SHE'S DEFINITELY NOT LIKE SIGNING A LEASE AGREEMENT OR DOING ANYTHING LIKE THAT.
UM, AND AGAIN, THIS IS SUCH A SMALL AMOUNT, BUT THAT'S KIND OF WHY IT IS SO SMALL BECAUSE, YOU KNOW, SHE WOULD'VE MAYBE GOTTEN A CREDIT CARD FOR THIS
SHE'S IN THE CITY OF LONG BEACH.
SHE IS WOMAN OWNED, MINORITY OWNED.
SHE NEEDS THE LMI CRITERIA FOR THE CDBG FUNDS THAT WE'RE TRYING TO USE TO FUND THIS.
UM, BUT THAT ALSO IS WHY THE LOAN AMOUNT IS SO SMALL.
WE'RE JUST TRYING TO SEE LIKE, DOES THIS WORK.
AND I THINK GIVEN, YOU KNOW, THE LEVEL OF PAPERWORK THAT SHE SUBMITTED AND HER BUSINESS PLAN AND THE FACT THAT SHE, YOU KNOW, HAS KIND OF RUN A LITTLE SIDE BUSINESS ON YOUTUBE, YOU KNOW, SHE HAS SOME EXPERIENCE.
SHE ALSO HAD A PRETTY GOOD RESUME.
YOU KNOW, SHE HAD A LOT OF EXPERIENCE WORKING IN MANUFACTURING AND LIKE KIND OF CONSUMER FACING INDUSTRIES.
SHE WORKED FOR TOYOTA, QUALCOMM, ERICSSON, ALL THOSE THINGS WERE ON HER RESUME.
UM, IT SEEMS LIKE MAYBE SHE WAS CORPORATE AT ONE POINT AND THEN DECIDED
[00:20:01]
TO LIKE GO OFF GRIDSO SHE ALSO HAS THE RIGHT BACKGROUND TO PRODUCE, YOU KNOW, THIS TYPE OF, UH, A PRODUCT.
UM, IT'S JUST TOUGH 'CAUSE YOU KNOW, HER PERSONAL FINANCIAL STATEMENT HAS, YOU KNOW, PRETTY MUCH A ZERO ON IT.
UM, WE HAVE VERY LITTLE ASSETS.
YOU KNOW, WE'RE GOING BE UN UNSECURED.
THIS IS A DEFINITELY UNSECURED TYPE TRANSACTION.
I PUT DOWN, YOU KNOW, UM, THE ACCOUNTS RECEIVABLE, YOU KNOW, AS AN ASSET AND OF THE EQUIPMENT.
SHE WANTS TO BUY ABOUT $3,000 WORTH OF EQUIPMENT.
SHE DOES A LITTLE BIT OF EXISTING EQUIPMENT, YOU KNOW, THAT STUFF IS WORTH NOTHING WHEN YOU TRY TO LIQUIDATE IT.
BUT, YOU KNOW, SHE HAS LIKE, YOU KNOW, 0.47 TO ONE COLLATERAL.
SO, I MEAN, THOSE ARE SOME, I MEAN, I'M GOING INTO STRENGTHS LIKE THIS IS NOW SHE, SO THOSE ARE SOME OF THE WEAKNESSES, YOU KNOW? MM-HMM.
SHE HAS VERY LITTLE PERSONAL ASSETS.
PERSONAL FINANCIAL STATEMENT IS PRETTY WEAK.
UM, ALSO HER REVENUES THAT SHE'S BEEN ABLE TO GENERATE THUS FAR, PRETTY LOW.
UM, BUT SHE IS, YOU KNOW, SHOWING THAT FOR SUCH A SMALL AMOUNT AND GIVEN JUST HER YOUTUBE REVENUE, NOW SHE COULD HAVE CASHFLOW THE DEBT, RIGHT? SO WE'RE LOOKING AT 15,000 FOR THREE YEARS.
IT'S ONLY LIKE FOUR 60 A MONTH AND A PAYMENT, YOU KNOW, VERY, UM, AFFORDABLE AND KIND OF THINKING OF THIS AS LIKE A CREDIT BILL LOAN, WHICH IS A PRODUCT THAT WE WERE CONSIDERING ADDING INTO THE ADMIN PLAN WHEN WE REVIEW AND, YOU KNOW, WE APPLY FOR MORE FUNDS WITH EDA, UM, YOU KNOW, DOING REALLY SMALL LOANS LIKE IN THIS RANGE, LIKE 5, 10, 15 K, WHERE IT REALLY IS JUST LIKE TO HELP PEOPLE BUILD PER LIKE ALMOST PERSONAL CREDIT.
UM, SO THAT THEY GET USED TO, YOU KNOW, WHAT IS IT LIKE TO HAVE CREDIT TO PAYBACK MM-HMM.
UM, AND HOPEFULLY WHEN WE CAN GET LINKED UP WITH CREDIT BUILDERS ALLIANCE AND WE CAN START REPORTING SOME OF THE BUSINESS LOANS ON PEOPLE'S PERSONAL CREDIT, ESPECIALLY IN THIS SCENARIO WHERE IT'S BASICALLY A PERSONAL LOAN, RIGHT? THIS WHOLE PROPRIETOR MAKING LOANS AND THAT PERSONALLY DOING BUSINESS ADS.
AND THEN YOU CAN REPORT THAT ON THEIR PERSONAL CREDIT THAT IT'S, UH, FOR BUSINESS PURPOSES THOUGH, USUALLY THERE'S LIKE A LITTLE NOTE.
AND THAT HELPS THEM BOTH BUILD SOME, SOME BUSINESS CREDIBILITY AND PERSONAL CREDIT.
SO I THINK THIS COULD BE HELPFUL FOR HER, MAYBE TO GET HER INTO, UM, YOU KNOW, BRING MORE ON
UM, SHE DID REDO HER PROJECTIONS AND I THINK THEY'RE PRETTY REASONABLE.
LIKE IF SHE'S GONNA GO ALL IN WITH THIS BUSINESS, SHE, SHE PHYSICALLY COULD GENERATE, YOU KNOW, ANYWHERE FROM THREE TO 500 KI THINK IS NOT COMPLETELY OUT OF THE RANGE.
UM, I'M GONNA ASK YOU ABOUT THAT, BUT DOWN.
YEAH, AND I WAS TRYING TO SEE IF I INCLUDED ANY OF THE ASSUMPTIONS IN THERE.
I THINK IN MY, BECAUSE I DID QUITE A BIT OF WORK ON THE ASSUMPTIONS, SO THOSE PROJECTIONS AND LIKE HOW WE GOT THERE, HOW MANY SHE WOULD NEED TO, YOU KNOW, SELL HOW MANY UNITS, ALL THAT.
BUT YEAH, LEMME OPEN UP PROJECTIONS.
WELL I JUST HAD SOME FEW THINGS THAT JUMP OUT FIRST ON A PERSONAL LEVEL, IF SHE'S DOING EMPLOYEES AND HAD A CORPORATE JOB, IT'S JUST A MYSTERY.
NO GAS CARD, NO CREDIT CARD OF ANY KIND.
AND AGAIN, WE LIKE ASKED HER A LOT ABOUT THAT AND SHE WAS JUST LIKE, WELL, AND SO BASICALLY THIS IS, YOU KNOW, AS KIND OF BEING LIKE A LENDER OF LAST RESORT, SHE'S NOT GONNA GET ANY CREDIT ANYWHERE.
AND UNTIL YOU HAVE LIKE SIX MONTHS TO A YEAR OF THAT, THEN GIVE YOU UNSECURED CREDIT.
LIKE IF YOU'RE A NEW CITIZEN TO THE COUNTRY OR WHEN YOU'RE SUPER YOUNG, YOU KNOW, UNLESS YOUR PARENTS CO-SIGN FOR YOU MM-HMM.
IT'S LIKE THEY GET A CREDIT CARD FROM THEIR PARENTS AND THEN, YOU KNOW, AND THEN THEY GET FULL CREDIT THAT WAY.
BUT YEAH, SHE, SHE'LL NOT BE ABLE TO QUALIFY AT ALL.
SECOND OF ALL, I MEAN, IS SHE THE ONLY SALES PERSON? DOES SHE HAVE OTHER PEOPLE HELPING HER TO GET ACCOUNTS? BECAUSE, UM, AND DOES SHE HAVE ANY OTHER PROSPECTS OTHER THAN THIS ONE SCHOOL? 'CAUSE NOW YOU'RE SAYING SHE'S ESTIMATING 300,000 IN SALES, BUT HOW, HOW, WHERE AND WHO? SO SHE, UM, IS LAUNCHING A KICKSTARTER CAMPAIGN.
AND SO SHE'S TAKING PRE-SALES.
THAT'S HER MAIN, UM, SORT OF GOAL OF HOW SHE THINKS SHE CAN GENERATE AT LEAST THAT FIRST COUPLE HUNDRED THOUSAND IS BY DOING KICKSTARTER AND TAKING PRE-SALE.
WHEREAS, AND SHE ALSO IS REGISTERED WITH AMAZON AS A VENDOR.
LIKE A LOT YOU CAN REGISTER PERSONALLY, BUT SHE ACTUALLY GOT THE BUSINESS REGISTRATION WITH AMAZON, UM, TO BE ABLE TO SELL HER PRODUCTS ON AMAZON.
SO SHE'S REALLY GOING WITH THE TECH.
I THINK THE CROWDFUNDING IDEA IS NOT A BAD
[00:25:01]
IDEA.UM, I DON'T KNOW WHERE SHE IS WITH THAT.
LIKE IF SHE'S ALREADY LAUNCHED OR, YOU KNOW, I'M, I'M NOT SURE HOW FAR ALONG THAT PROCESS TO WHOM, I GUESS LIKE GUESS WHO'S THE, WHO'S THE REAL MARKET? SO I THINK INDIVIDUALS THAT ARE INTO VAN LIFE, LIKE I'M SAYING, LIKE I HAVE LIKE THIS LEG OF A BLUE THING AND I'M LIKE, IT'S ACTUALLY, IT SOUNDS WEIRD.
UM, SO MAYBE I WILL TRY A PRODUCT LIKE THIS.
UM, AND LIKE THE REI KINDA OUTDOOR INDIVIDUALS.
AND THEN I THINK SCHOOLS THAT MAYBE ARE THESE LIKE ALTERNATIVE SCHOOLS THAT DON'T HAVE GREAT FACILITIES OR THAT MAYBE ARE DOING LOTS OF OUTDOOR EDUCATION.
SO THEY WOULD BRING IT WITH THEM IN A VAN AND THEN SET IT UP, YOU KNOW, WHEN THEY'RE OUT.
UM, THERE'S LIKE THIS YOUTH WILDERNESS PROGRAM WITH THE NON-PROFIT THAT MY DAUGHTER PARTICIPATED IN AND THEY HAD THINGS LIKE THAT, BUT THEY KIND OF USED NOT THE SAME TYPE OF PRODUCT.
BUT, SO I THINK SOME SCHOOLS ARE OUTDOOR PROGRAMS. I THINK INDIVIDUALS THAT ARE OUTDOOR.
I THINK MAYBE INSTEAD OF GOING WITH LIKE A MARGO OR SOMETHING LIKE THAT, PEOPLE MIGHT BE INTO THIS SMALLER MUSIC FESTIVALS OR OUTDOOR CAMPING TYPE THINGS.
UM, WHAT ELSE DID SHE TELL ME? UM, BUT I THINK THOSE ARE, AND THEN SHE THINKS JUST HER YOUTUBERS, YOU KNOW, LIKE ALL THE PEOPLE THAT FOLLOW HER MIGHT BE INTO THAT.
SO I THINK THOSE ARE THE MAIN ONES THAT I SEE.
I THINK THE
I, I DEFINITELY SEE A MARKET AND I THINK THE FESTIVAL WOULD BE, I MEAN LIKE I JUST THINK ABOUT COACHELLA, MY FRIENDS LET GO.
THEY'RE STUCK UP IN THE MIDDLE OF THE DESERT.
I GUESS KIND OF JUMPING OFF BLAIR'S THING THOUGH IS LIKE, DOES SHE ALREADY HAVE THE CONTACTS FOR THAT TO HELP WITH KIND OF BUILDING THAT OUT? OR IS IT SOMETHING THAT SHE'S BASICALLY STARTING FROM SCRATCH? SHE THINKS SHE HAS AN AUDIENCE THERE BUT DOESN'T HAVE THE CONNECTIONS TO START PUTTING THAT IN FRONT OF 'EM AND SO SHE DOESN'T HAVE TO START BUILDING THAT OUT? WELL, SO BECAUSE SHE WAS IN THAT SORT OF YOGI OUTDOOR SPACE, SHE'S SAYING THAT THROUGH HER POSITIVE MAGAZINE TO TIER MEDIA, SHE ALREADY HAS HOSTED SOME FESTIVALS, PARTICIPATED IN FARMER'S MARKETS.
AND OTHER LIKE SMALL BUSINESS FORUMS. AND SHE FEELS LIKE THIS IS LIKE A NATURAL EVOLUTION.
BECAUSE SHE IS ALREADY IN THAT SPACE.
FROM HER, FROM WHAT SHE PRESENTED.
ALSO KIND OF HAD THAT SAME QUESTION.
SO I LOOKED AT HER LIKE HER BACKGROUND, WHICH IS REALLY ENCOURAGING.
SO IT SAYS HERE THAT DURING THIS TIME SHE CREATED BUSINESS PARTNERSHIPS WITH GLOBAL LOCAL BRANDS TO, FOR MOTOR COMPANY AND ONE VISITORS BUREAU AND THE LA LAKERS.
SO IT SEEMS LIKE SHE HAS THAT POTENTIAL TO CREATE THAT PARTNERSHIP THAT SHE NEEDS, GONNA NEED TO GET THOSE ORDERS IN.
YOU KNOW, THEY'RE PRETTY GOOD PART, YOU KNOW, GOOD NAMES HERE IT SEEMS. MM-HMM.
SO I MEAN, YES, TO ANSWER MY QUESTION, I WOULD SAY YES BASED ON WHAT SHE HAS PRESENTED TO US.
UM, THAT IS MY UNDERSTANDING, UM, THAT SHE ALREADY HAS SOME OF THESE INS.
UM, AND I DON'T KNOW HOW FAR THE SCHOOL THING WILL GO, BUT HER SON GOES TO THAT SCHOOL.
SO THAT'S WHAT THAT END WAS TOO.
SO I HAVE A COUPLE OF QUESTIONS.
CAN YOU, DO WE HAVE A PERCENTAGE REQUIREMENT FOR EQUITY THAT WE'D LIKE TO SEE PEOPLE PUT IN VERSUS THE VERSUS THE LOAN? YEAH.
UM, IT DEPENDS ON LIKE THE TYPE OF LOAN, BUT SO FOR WORKING CAPITAL, I BELIEVE IT'S LIKE 30% EQUITY.
UM, I USUALLY STAY ANYWHERE FROM 20 TO 50% IS WHAT I LIKE TO SEE FOR BORROWERS, UM, THAT ARE STARTUPS.
AND SHE'S DEFINITELY A STARTUP.
SHE DOES HAVE FIVE TAX RETURNS THOUGH UNDER HER DBA NAME.
SO THAT IS THE DEFINITION IS LIKE ZERO TAX RETURNS FILED.
SHE HAD TWO YEARS THAT HAD HER DBA WITH TRL MEDIA.
AND AGAIN, THAT'S THE LITTLE REVENUE THAT YOU SEE ON THERE.
UM, SO 30 TO 50% FOR STARTUPS AND THEN, YOU KNOW, MORE ESTABLISHED BUSINESSES, UM, THAT ARE LOOKING FOR LIKE EQUIPMENT AND STUFF.
USUALLY IT GOES DOWN LIKE 10 TO 20%.
I THINK 10 IS THE MINIMUM THAT WE'RE LOOKING FOR, FOR ALL BUSINESSES TO PUT IN, BUT IT'S NOT REALLY LIKE A HARD REQUIREMENT.
IT'S KIND OF IN OUR SOFT LANGUAGE OF WE WOULD LIKE TO SEE THIS.
UM, BUT YEAH, I MEAN THAT'S ANOTHER GOOD POINT.
SHE HAS PUT IN A, YOU KNOW, A HUNDRED PERCENT EQUITY 50% RIGHT.
IF YOU PUT THESE TWO NUMBERS TOGETHER.
WE WORKED BACK AND FORTH A LOT ON THE STATEMENTS AND I WAS, YOU KNOW, EXPLAINING LIKE, WHAT IS THE BALANCE SHEET AND LIKE HOW, WHAT DID YOU, WHAT HAVE YOU PAID? LIKE WHERE HAVE, WHAT HAVE YOU DONE SO FAR TO GET THIS GOING? AND SO THESE NUMBERS HAVE BEEN VERIFIED.
[00:30:01]
SO I WAS, AND AGAIN, WE WENT BACK AND FORTH QUITE A WHILE ON THAT.AND SO YEAH, WE STARTED WORKING WITH HER FOR LIKE BEFORE, BEFORE THE HOLIDAYS.
AND THEN WE WERE KIND OF DONE AND READY AROUND JANUARY, BUT THEN IT TOOK TILL THEN TO GET THIS MEETING GOING.
SO WE'VE BEEN WORKING WITH HER FOR A WHILE, BUT I DID DO QUITE A BIT OF BACK AND FORTH AND I THINK SHE DID AT LEAST MEET ONE TIME WITH THE SBDC.
I THINK SHE WAS ALREADY ESTABLISHED WITH EM.
SHE WAS ALREADY ESTABLISHED WITH 'EM AND SO WE WANTED HER TO GET A LITTLE TA.
UM, BUT I FEEL LIKE I PUT HER THROUGH THE RINGER ON THE FINANCIALS.
I WAS LIKE, I SENT HIM BACK AT LEAST TWICE, THREE TIMES BEING LIKE, OH, LET'S TRY THIS AGAIN.
UM, YOU KNOW, AND JUST KIND OF REALLY FLESHING IT OUT WITH HER, YOU KNOW.
'CAUSE SHE HAD SELLING LIKE, I LIKE 2000 UNITS OR SOMETHING CRAZY.
I WAS LIKE, WHAT IF YOU ONLY SELL 1000 OR ONE? YEAH.
WELL THEN I'M NOT TRYING TO SAY THAT SHE'S ONLY GONNA SELL ONE, BUT LIKE, I KNOW WE, WELL, BUT THAT'S WHY I DID GIVE THE DETAILS OF HER ORDER, WHICH I DID.
YOU KNOW, AND I GOT A, UM, A COPY OF ALL OF THAT FOR THIS FIRST ORDER.
'CAUSE YOU KNOW, SO IT IS WHATEVER, SIX UNITS PLUS THE ANCILLARY STUFF.
SO I THINK EACH ORDER IS LIKE, YOU ORDER A COMBINATION.
YOU KNOW, YOU'RE ORDERING DIFFERENT SIZES AND A COUPLE OF EACH PLUS THE LIKE DISPOSABLE TRASH CANS, THE BAGS, THE PRIVACY TENT, THE AIR PUMP, LIKE IT ALL COMES IN LIKE A LITTLE PACKAGE.
AND HER, HER BRANDING LOOKS PRETTY GOOD.
HAS, SHE HAS LIKE A LITTLE TOTE BAG THAT IT ALL LIKE GOES INTO KIND OF, YOU KNOW, KIND OF LIKE THE LITTLE, UH, KAYAK OR YEAH.
HER PADDLEBOARD ALL KIND OF GOES INTO A UNIT.
HAVE YOU SEEN A MODEL? UM, I BELIEVE YES.
SHE HAD A PHOTO OF IT IN HER, UM, BUSINESS PLAN.
WHICH I COULD HAVE PUT IN HERE, I GUESS.
UM, BUT I FEEL LIKE IT WAS LIKE A, LIKE A CGI RENDERING, NOT LIKE AN ACTUAL PHOTO OF ONE.
SO DID IT LOOK LIKE A TOILET OR DID IT LOOK LIKE A BUCKET WITH A TOILET SEAT ON TOP OF IT? I'M JUST CURIOUS WHAT IT LOOKS LIKE.
IT LOOKS MORE LIKE A PORTA-POTTY.
IT'S LIKE SQUARE AND TALL AND YOU SIT ON IT.
AND THEN THERE'S A TENT AROUND IT.
HAVE YOU SEEN THOSE LIKE CHANGING TENTS THAT PEOPLE DO SOMETIMES TOO? IT'S LIKE YOU GO INTO A LITTLE, THE SHOWER THING, LIKE THE TANNING, IT KIND OF LOOKS LIKE A SHOWER THING, LIKE A SQUARE LITTLE CAMPING SHOWER THING.
AND SOMETIMES THEY PUT THOSE AROUND PORTA-POTTIES TOO.
SO LIKE BLOCK, SO WHEN YOU COME OUT OF THE PORTA POT, THERE'S STILL LIKE A LITTLE AREA AND THAT'S USUALLY JUST SOMETIMES WHERE THE WASH BIN IS.
IT'S LIKE RECTANGULAR MORE THAN LIKE ACTUAL TOILET
THE ONLY COMMENT I HAVE, UH, JUST, I KNOW IT'S VERY ODD.
SO THIS, I'VE NEVER SEEN LIKE UNDERWRITTEN A TRANSACTION LIKE THIS, BUT I HONESTLY THINK IT'S A PRETTY INNOVATIVE.
UM, AND I DO SEE, AGAIN, LIKE WHERE THE MARKET COULD BE.
I DO SEE THAT THERE ARE OTHER COMPETITORS TOO.
LIKE I HAVE PER PRICE POINT VERSUS LIKE THE LUG BELOW.
AND THAT THING WAS LIKE 50 OR 60 BUCKS.
SO THIS IS DIFFERENT, BUT IT IS FOR MORE COMFORT.
AND SHE'S KIND OF TARGETING FOLKS THAT ARE GONNA HAVE HIGHER TRAFFIC AND REALLY ARE LOOKING FOR SOMETHING THAT'S NICER THAN A QUARTER POTTY.
BUT I THINK IT IS STILL THE PRICE POINT OF LESS THAN PAYING FOR A QUARTER POTTY.
SO QUARTER POTTY IS A THOUSAND BUCKS A DAY.
UM, SO IT'S CHEAPER THAN THE PORT BODY, BETTER THAN AN RA BRAND BUCKET.
IS IT THIS ONE? UH, YEAH, THERE IT IS.
LIKE A, IT'S LIKE A RACE FOR BODY THAT YOU SEE OUT IN NATURE.
LIKE I WAS EXPECTING SOMETHING.
IN, OUT IN THE WILDERNESS THEY'RE METAL.
SO THIS ONE, IT LOOKS VERY SIMILAR.
THERE'S SEVERAL RENDERING AND THEN YOU DO A TENT AROUND THAT.
SO THERE GONNA BE LIKE A LITTLE PRIVACY TENT
SOME PEOPLE ARE LIKE, I WOULD NEVER BE OUTSIDE.
I'M LIKE, I WOULD RATHER JUST LIKE A, YOU KNOW, YOU KNOW EVERYBODY, THERE'S NO HER AT ALL.
AND, AND IF YOU WERE AT A FESTIVAL WHERE THE PORT PARTY'S LIKE OVERFLOWING, I'M PROBABLY GONNA GET GROSS AFTER A WHILE.
LIKE I WAS AT A FESTIVAL THE TIME AND I WAS LIKE, OH MY GOD, I'M NOT GOING IN THERE.
AND SHE, SHE SAID, IT'S KIND OF LIKE THE DIAPER JEAN RIGHT WHEN YOU TURN IN.
THAT'S WHAT SHE HAD MENTIONED.
AND I LIKE, I KNOW THAT AND IT JUST, YEAH.
OR LIKE SOME AIRPORTS HAVE THAT RIGHT WHERE IT TWISTS AND IT LIKE GOES AWAY.
AND SHE DID A LOT OF WORK ON THE PATENT 10, SO, MM-HMM.
IF, IF IT TAKES OFF, I MEAN, WE CAN SAY WE WERE EARLY.
ALSO, I JUST REALLY THINK SHE COULD USE THE CREDIT.
[00:35:01]
NOT YET.SO OF ALL THE LOANS WE'VE DONE ALL THESE YEARS, I THINK TO ME THIS FEELS LIKE THE RISKIEST MM-HMM.
BUT IT'S, THERE'S A HIGH RISK IN IT.
SO, UH, BUT I HEAR WHAT YOU'RE SAYING.
I SEE IT, YOU KNOW, IT'S NOT, AND IT LOOKS LEGIT AND IT'S WELL, SO I THINK IN ORDER TO MITIGATE THAT RISK, YOU GUYS COULD REQUIRE THAT THERE HAS BEEN CO OR SORRY, PARTNER CO-SIGN ON THE LAW KEEP SAYING SHE HAS TO PAY BACK IMMEDIATELY.
THEY'RE NOT GIVING HER, IS IT LIKE A NO, NO, NO.
SO SHE WOULD START MAKING, YOU KNOW, IT'D BE THREE YEARS.
UM, JUST, YOU KNOW, AS SOON AS YOU DISPERSE 30 DAYS LATER, HER FIRST PAYMENT IS DUE.
I WOULD FEEL A LOT MORE COMFORTABLE IF HER PARTNER HAS SIGNED.
UM, HE'S THE ONE THAT HAS LIKE MORE REVENUE.
YOU KNOW, I HAVEN'T SEEN HIS FINANCIAL, SHE WOULDN'T SUBMIT ANYTHING.
WE COULD PULL HIS CREDIT IF WE REALLY WANTED, BUT I THINK THAT'S REALLY THE STORY HERE.
BECAUSE LIKE HE'S SUPPORTING HER
SO SHE'S BEEN ABLE TO LIKE BE YOGA YOGI AND LIKE YOUTUBEING AND ALL.
LIKE IF WE REALLY, THAT WOULD GIVE ME A LOT OF SECURITY.
WE CAN'T, I COULDN'T REQUIRE IT AS AN UNDERWRITING REQUIREMENT OFF THE BAT BECAUSE THEY AREN'T LEGALLY MARRIED.
BUT AS A CONDITION OF APPROVAL, YOU GUYS COULD PUT THAT CONDITION THAT WE APPROVE THIS LONG CONDITIONAL TOO.
CHAUNCEY HOOD CO-SIGNING OR PROVIDING A PERSONAL GUARANTEE.
UM, AND I DID WARN HER THAT THAT MIGHT HAPPEN.
I WAS LIKE, I'LL PRESENT IT WITHOUT IT.
BUT THAT TO ME IS, UM, SHE WOULD BE 100% TIED UP BESIDES THE MONTHLY PAYMENTS.
DO YOU DO ANY OF THESE LOANS, REGULAR CHECK-INS WITH THE, WITH THE, UM, THE ACCOUNTS? MEANING, UM, LET'S SAY TODAY WE WERE DOING FIVE MM-HMM.
AND OFF THEY GO, THEY GET THE MONEY THEY BUSINESS.
DO YOU CHECK IN WITH, WITH THEM REGULARLY OTHER THAN JUST RECEIVING THE MONEY OR THAT'S A, THE REASON I ASK IS LIKE, CAN YOU DO PROGRESS REPORTS WITH EM? HOW ARE YOUR SALES GOING? UH, WHAT ARE YOUR NEW LEADS? LIKE, UH, DO YOU HAVE ANY NEW ORDERS? YEAH, SO A CONDITION OF ALL THE LOANS, IT'S KIND OF LIKE THE BOILERPLATE DOCUMENTS IS THAT THEY HAVE TO SUBMIT FINANCIAL STATEMENTS ON A QUARTERLY BASIS.
UM, WHEN THE CITY IT, THE CHALLENGE HERE IS THAT THERE'S NO STAFF TO DO THAT.
THERE'S A WHOLE PERSON THAT'S LIKE DOING THE PORTFOLIO MANAGEMENT ON THE CITY SIDE.
JUST MAKING, I CAN HELP ASSIST WITH THAT, BUT YOU REALLY NEED LIKE A DEDICAT.
SO SOME, SO THE THING ABOUT IT'S IS WE DO PORTFOLIO MANAGEMENT, BUT THE ONES THAT ARE CURRENT AREN'T THE ONES THAT WE'RE CONTACTING.
THE ONES THAT ARE NOT CURRENT ARE THE ONES THAT WE'RE CONTACTING TO GET TO HELP THEM BECOME CURRENT.
BUT THIS CASE FOR THE LAST SAYING, WE WANT TO STAY IN TOUCH WITH YOU ON REGULAR BASIS.
I FEEL LIKE THERE WAS A FEW THAT WE SAID THAT TO TOO, LIKE LAST TIME WHERE WE WANTED TO CREATE LIKE A WATCH LIST TO WHERE WE, LIKE, AFTER WE FIRST APPROVED THEM AND WANTED TO LIKE KEEP, KEEP TABS ON THEM AND, AND CUT AND LIKE FOLLOWED WITH 'EM, YOU KNOW, ON THAT QUARTERLY BASIS.
UM, BECAUSE TYPICALLY IT BECOMES LIKE IF THEY'RE CURRENT THEN WE DON'T FOLLOW THEM.
AND JESSICA, WE LOVE, WE KEEP LAUGHING.
LIKE IS SUPPOSED TO ONLY BE LIKE 25%.
HE HAS BEEN HELPING SOME OF THIS TOO, BUT HE HAS OTHER FISH TO FRY.
LIKE HE, HE'S A PART OF APARTMENT.
THERE'S I MONEY FOR ME TO HAVE THAT.
THAT'S A WHOLE OTHER THING THAT JULIE IS WORKING WITH.
THERE WOULD BE A WHOLE PERSON THAT WAS ASSISTING A LITTLE BIT MORE LIKE ON THE FRONT END ADMIN ON CLOSING AND THEN DOING PORTFOLIO MANAGEMENT.
AND THEN CARL AND I WOULD BE WORKING ON LIKE MORE OF THE MARKETING UNDERWRITING PROGRAM MANAGEMENT.
REALLY NEED, THEY NEED ONE WHOLE PERSON.
AND WE DID TALK ABOUT THAT AND WE TRIED TO PUT THAT INTO THE BUDGET AND INTO THE NEW EBA PLAN WITH LIKE FUNDING SOME OF THE REVENUES GENERATED WOULD BE, COULD FUND THAT FOR SOME SALARY.
WELL, GIMME A TIMELINE TIMEFRAME BECAUSE IF YOU'RE GETTING A FESTIVAL SEAT, ALL THE ADS ARE COMING OUT.
SO IF SHE GETS, LET'S SAY SHE'S APPROVED TODAY, WHEN WOULD SHE RECEIVE THE MONEY? WHEN COULD SHE START SELLING ON THE BASIS OF, YOU KNOW, APRIL THROUGH AUGUST, SEPTEMBER, UH, FESTIVAL SEASON? MM-HMM.
BUT IT'S REALLY ON THE BUSINESS.
THERE'S CLOSING DOCUMENTS THAT WE REQUIRE THEM TO SUBMIT.
LIKE, IF YOU APPROVE THIS TODAY, SHE'LL GET THE CHECKLIST BY
[00:40:01]
FRIDAY.WELL WE ACTUALLY ALREADY SENT IT TO HER AHEAD OF TIME BECAUSE IT'S BEEN HAVING SUCH CHALLENGES GETTING THAT CHECKLIST FROM, FOR THE BORROWERS.
THIS ONE IS VERY CUT AND DRY THOUGH.
WE ALREADY HAVE THE LIKE LEASE AGREEMENT.
IT'S NOT REALLY COMMERCIAL SPACE.
THERE'S A LOT LESS DOCUMENTATION.
OTHER, UM, BUSINESSES THAT HAD COMMERCIAL SPACE, LIKE THE TWO AUTO AUTOMOTIVE COMPANIES, LIKE ONE OF 'EM FINALLY FUNDED.
'CAUSE HE HAD TO RENEGOTIATE HIS LEASE.
THIS LEASE WAS I, BUT IT TOOK LIKE THREE MONTHS.
AND SO WE'RE NOT GONNA MAKE A, LIKE A 10 YEAR, SEVEN YEAR LOAN TO 'EM WHEN THEY HAVE A ONE YEAR, THREE MONTHS LEFT ON THEIR LEASE.
LIKE, WE HAVE TO MAKE SURE THAT WE HAVE THAT SECURITY, THAT THEY'RE IN THE COMMERCIAL SPACE OPERATING FOR AT LEAST A REASONABLE AMOUNT OF TIME TO BE ABLE TO PAY BACK THE LOAN.
DO YOU SEE A RISK THAT I'M TALKING, OH, I MEAN ONE OF MY QUESTIONS ON IT WAS RISK LEVEL.
I, BUT I THINK THE PRODUCT IS REALLY INVENTIVE AND I THINK THERE IS A DEMAND FOR IT.
I, IT'S JUST THE TIMING FROM WHICH IT WILL GET PRODUCED AND HOW SHE GETS IT IN FRONT OF PEOPLE.
UM, I DON'T KNOW IF I THINK THAT'S A REASON TO DENY THE LOAN.
I THINK YOU JUST NO, NO, THAT'S, BUT IT'S POSITIVE SHE COULD GET LAUNCH THE KICKSTARTER.
LIKE ONCE WE FUND, I THINK SHE'S READY TO LAUNCH THE KICKSTARTER.
SHE'S BEEN WORKING ON THAT FOR A WHILE.
SO SHE HAS A CHECKLIST WHEN SHE SUBMITS THE DOCUMENTS THAT, SO WE DON'T WAIT FOR HER.
I'M SUBMITTING TO THE CITY ATTORNEY TO GET THE LOAN DOCUMENTS PUT TOGETHER SOON AS YOU GUYS APPROVE.
AND ALSO THAT'S ANOTHER ISSUE THOUGH.
STATE ATTORNEY IS RETIRING, RIGHT? YEAH.
OH, I DON'T KNOW IF THE, WE DIDN'T SAY WHICH ONE.
THE ONE THAT WORKS WITH US AGAIN.
WHEN HE SPOKE TO US, HE TOLD US HE HAD SUBMITTED HIS
SO IT'S NOT LIKE IT'S IT HE'S HERE FOR MONTHS.
SO WE HAVE SOME, BUT THAT'S ANOTHER CHALLENGE IS LIKE KIND OF WORKING WITH 'EM, GETTING THE PAPERS.
BUT I THINK IT'S GONNA BE GOOD.
WHICH IS WHY I'M, HE'S, BECAUSE HE'S, WE'VE BEEN WORKING WITH HIM FOR MANY, MANY YEARS.
SO THERE IT IS GONNA BE FOR SURE A LEARNING CURVE.
WHOEVER NEW AND HOPEFULLY HE'S GROOMING OTHER PEOPLE NOW, BUT AT THE SAME TIME, HOPEFULLY HE HAS ALL THE TEMPLATES AND EVERYTHING THERE.
HE DRAFTS THE LOAN DOCUMENTS, THE PROMISSORY NOTE AND ALL THAT.
AND SO WITH THIS ONE WE WILL, DEPENDING ON HOW IT MOVES FORWARD, WE WOULD ASK IT TO ALSO DRAFT A PERSONAL GUARANTEE OR PUT AIGNER ON THAT.
I WOULD JUST LIKE TO ASK YOU, I UNDERSTAND THERE'S THE STAFFING ISSUE.
CAN THERE BE JUST A LITTLE ASTERISK CARE IF IT'S APPROVED? HOW ABOUT CHECKING IN WITH THE COMMITTEE? CAN WE HEAR, YOU KNOW, HOW'S IT GOING? WHAT'S THE STATUS OF THE KICKSTARTER 30 OR 60 DAYS OUT? WHAT'S THE STATUS OF WELL WE COULD DO THAT.
LIKE JUST REPORT BACK, YOU KNOW, IT DOESN'T HAVE, I'D SAY THE LEGAL TEETH PER SE, BUT IT'S AT LEAST, UH, GOOD TEMPERATURE.
IDEALLY THESE MEETINGS WOULD INCLUDE A LITTLE BIT MORE OF THAT.
LIKE, SO THERE'D BE LIKE SOME TIME FOR NEW LOANS TO BE PRESENTED, BUT THEN THERE'D ALSO BE TIME TO GO OVER THE PIPELINE.
WHAT, WHAT'S PORTFOLIO LOOKING, WHAT'S IN WORKOUT THERE? QUITE A FEW LOANS.
I'D LOVE TO KNOW THAT I, AND THEN JUST GOES OUT IN THE, SO BOTH LIKE THE OLD, LIKE THE PAST PORTFOLIO BUT THEN THE PIPELINE.
SO WE'RE TALKING ABOUT GREEN LOANS COMING DOWN SO THAT YOU GUYS ARE KIND OF LIKE HEARING ABOUT SOME STUFF BEFORE I'M ACTUALLY SHOWING YOU IT.
AND THEN ALSO ON THE BACK END YOU CAN GO AHEAD AND LOOK BACK AND ASK ABOUT OTHER TRANSACTIONS AND THINGS LIKE THAT.
UM, AND WE DO APPRECIATE LIKE YOUR EYES AND EARS ON THE GROUND TOO.
WE'D LOVE FOR YOU TO LIKE, YOU KNOW, COME BY.
WE'RE ALWAYS TALKING ABOUT YEAH.
I FEEL THERE'D ALWAYS BE AN ITEM ON THE AGENDA THAT HAD TO DO WITH PIPELINE AND PORTFOLIO.
SO WE WOULD HAVE SOME REPORTS SO WE COULD AT LEAST LOOK AT IT.
SEE, AND WE HAVE, I MEAN KEEP IT, WE KEEP IT AS UP TO DATE AS WE CAN BECAUSE WE DO, LIKE I SAID, FOR THOSE THAT ARE VERY DELINQUENT, WE ARE WORKING WITH THEM TO, YEAH.
AND JUST SO YOU GUYS KNOW, UM, I'M MORE STRICTLY CLERK, BUT, UH, SO ONE OF THE THINGS WE'RE PLANNING ON DOING IS ESPECIALLY STANDARDIZING THE MEETINGS FOR THE EDC, THAT COMMISSION MM-HMM.
AND EVERY TIME, EITHER BEFORE OR AFTER, DEPENDING ON YOUR AVAILABILITY, WE CAN LIKE JUST TACK THIS ON AS WELL.
SO YOU GUYS AREN'T COMING AND GOING ALL THE TIME.
IT JUST STREAMLINE EVERYTHING.
SO IT SETS EXPECTATIONS ON ALL THE DOCUMENTS.
AND I THINK HAVING GET REGULARLY, MONTHLY, WHETHER OR NOT WE HAVE TRANSACTIONS TO PRESENT WOULD BE GOOD AS WELL.
JUST INFORMATIONAL TO DO THESE REPORT OUTS ON THE PORTFOLIO AND THAT KIND OF THING.
SO MAYBE IT'S ONLY 30 MINUTE MEETING AND WE JUST TALK ABOUT PORTFOLIO AND BECAUSE YOU GUYS ALREADY BE HERE, WE'RE TRYING TO GET THE PIPELINE GUIDE SO THAT THERE'S AT LEAST ONE OR TWO OTHER TIMES TO APPROVE AS WELL.
DO YOU WANNA ADD THE GUARANTEE? YEAH, I'D LIKE TO, UM, MAKE A MOTION TO APPROVE WITH, UM,
[00:45:01]
THE CONDITION OF A QUARTERLY 90 DAYS.I SAY QUARTERLY CHECK IN WITH THE REVOLVING LOAN COMMITTEE VIA ECONOMIC DEVELOPMENT ON STATUS OF SALES, UH, FINANCES, ANYTHING ELSE OR, AND JUST GENERAL PROGRESS.
AND THE PERSONAL GUARANTEE, UH, UH, CHAUNCEY HOOD.
THEN THAT'S ALL LEGIT, I MEAN, YEAH.
AND SO THEN, SO I MEAN JUST SO YOU KNOW, LIKE, SO YOU GUYS APPROVED IT, THEN WE GO BACK TO THE APPLICANT OR THE BORROWER SAYING LIKE, IT WAS APPROVED WITH THESE CONDITIONS, ARE YOU GOOD WITH THAT? ARE YOU GONNA ACCEPT THESE CONDITIONS AND SIGNS? MM-HMM.
AND THEY, THEY HAVE THE CHOICE AT THAT POINT TO BE LIKE, NO, I DON'T ACCEPT THESE CONDITIONS.
BUT I THINK, UM, YOU LET 'EM KNOW IT HAD THAT THIS COULD BE A BOOK I DID, I DEFINITELY SAID ABOUT THE PERSONAL GUARANTEE.
I WANTED TO REQUIRE IT FROM THE BEGINNING, BUT OKAY, SO IT'S BEEN DISCUSSED.
BUT THE COMMITTEE, THE VOTING MEMBERS, YOU GUYS ARE AT YOUR DISCRETION TO ADD ADDITIONAL CONDITIONS WHETHER OR NOT THEY ARE OR ARE NOT TECHNICALLY LEGALLY REQUIRED.
JUST LIKE THE ONE YOU SAID ABOUT THE MONITORING.
I DON'T THINK THE REPORTING PIECE IS TO, THAT'S NOT OUTSIDE OF THIS.
AND THEN IT'S JUST THE GUARANTEE.
AND I THINK IF YOU'VE ALREADY HAD A PRE-CONVERSATION WITH THEM ABOUT THIS, IT'S, I MEAN IT'S A RISKY THING.
AND AS THE MAKER OF THE MOTION, DO YOU ACCEPT THE AMENDMENT? YES, I WILL.
AND IF YOU, WE CAN CALL FOR A VOTE.
IT WAS CHAIR LARKIN WAS GONNA SAY ABOUT THIS.
WHAT? SAME AS HE HE DEALING, HE COULD NOT MAKE IT.
ALRIGHT, SO HOW MUCH THERE NO PUBLIC COMMENT.
IS THERE ANY PUBLIC COMMENT? NO PUBLIC COMMENT.
SO ANY FURTHER DISCUSSION FROM THE COMMISSIONERS? ALRIGHT.
IF NOT, WE'LL CALL FOR A VOTE.
SO WE'LL MOVE ON TO THE, ANY PUBLIC COMMENT, WHICH, YOU KNOW, THERE IS NOT, NOT ANY RIGHT NOW, BUT ANY NON AGENDA, PUBLIC COMMENT, SEE THAT THERE IS NONE.
CAN WE MOVE ON TO, UH, ANNOUNCEMENTS? IS THAT OKAY? ANY ANNOUNCEMENTS ON STAFF? WELL, WE JUST MADE THE ANNOUNCEMENT THAT THAT'S RIGHT.
OUR, UH, PROGRAM ASSISTANT BE, SHE'S WORKING THROUGH APPLE ONE AND SO SHE SECURED A FULLTIME PERMANENT JOB WITH PUBLIC WORK.
WHICH, WHICH, WHICH, UM, DEPARTMENT HE'S GONNA BUG YOU ONCE HE FINDS OUT IT
AND SO YOUR LAST NAME WITH US WILL BE THE 2080 SECOND MARCH.
SO GOOD THAT SHE HAD TO PROMOTE OUT.
THAT WAS THE ULTIMATE, THAT THE ULTIMATE GOAL.
I MEAN, HONESTLY FOR THIS, FOR THIS SUPERVISOR, IT IS THE ULTIMATE GOAL THAT, TO GIVE SIGN OF SUCCESS.
SO I'M VERY, VERY HAPPY AND PROUD THAT JESSICA IS GOING TO BE A FULL-TIME PERMANENT EMPLOYEE WITH THE CITY OF LONG BEACH.
AND THE OTHER ANNOUNCEMENT I JUST HAVE WAS JUST WHAT I MENTIONED EARLIER, WHICH IS WE WANNA, WE'RE MOVING TOWARDS STANDARDIZING EVERYTHING.
SO JUST TO MAKE IT EASIER, MORE PREDICTABLE FOR EVERYONE, YOU KNOW, WE CAN ALWAYS MOVE THINGS AROUND IF THERE'S, UH, AN ISSUE.
BUT GENERALLY SPEAKING, WE WANNA SET THE COMMISSION MEETING AND THEN TACK ON OUR LAB COMMITTEE EITHER BEFORE OR AFTER THAT WE ALL KNOW WHAT THE YEAR LOOKS LIKE AHEAD.
AND THEN THAT HELPS ALL OF US GET ALL OUR PAPERWORK, YOU KNOW, KNOWING WHAT NEEDS TO BE DUE TO EVERYBODY.
AND WE'LL PRESENT IT TO YOU GUYS AND WE CAN WORK TO ADD ON THOSE, UH, ASK THAT, UH, ANDREA WAS TALKING ABOUT, UH, ON KIND OF JUST THE PROGRESS REPORTS ON THE OUTSTANDING WORLD.
AND THEN THE ANNOUNCEMENT OF THE CITY ATTORNEYS, UH, RETIRING
I KNOW, I, I, HE LIKE ONE IN MY MIND, BUT NO, I, ONE OF THEM THAT SHALL BE, THEY LISTEN UNTIL HE BECOMES PUBLIC WITH IT.
IS THERE ANY OBJECTION? IF NOT, WE CAN, UH, DECLARE THE MEETING ADJOURNED.
CAN WE THANK NATALIE FOR HER SERVICE TO
[00:50:01]
IS THERE ONE? NO, IT'S AN YES.SO IF ANY, IF YOU NEED ANYTHING I HAVE TO SAY.
NATALIE, THIS IS AMAZING, MY OWN SCRIPT, BUT I DON'T HAVE TIME TO LEAVE ON SCRIPT.