Mayor Lurie Announces Legislation to Help Small Businesses Open, Grow

SAN FRANCISCO – Mayor Daniel Lurie today announced that he will introduce legislation to the Board of Supervisors to renew the successful First Year Free program, which makes it easier for entrepreneurs to open small businesses in San Francisco. The program has helped thousands of businesses open—including Wow Kids Playground on Polk Street—waiving the cost of initial registration fees, initial license fees, first-year permit, and other fees.

The introduction of this legislation is part of Mayor Lurie's ongoing efforts to support small businesses and drive economic growth throughout the city. Last month, Mayor Lurie launched PermitSF to reform and streamline the city’s permitting processes, cutting red tape for small businesses and housing development. He also partnered with State Senator Scott Wiener to introduce state legislation to create new, more affordable liquor licenses and bring new restaurants and bars to downtown San Francisco. And just this week, the city partnered with b. Patisserie to bring the bakery to a kiosk in Union Square. From local neighborhoods to the downtown core, these initiatives are designed to support entrepreneurs and ensure San Francisco remains dynamic and welcoming for residents, and visitors.

“I have heard from countless small business owners that it can feel like government is working against them. My administration is not OK with that, and we are fixing it,” said Mayor Lurie. “The First Year Free program has helped thousands of new businesses by covering registration, permits, and other fees in their first year. With this legislation to renew it, we are taking an important step to make it easier for businesses to start and grow in our city.”

“Small businesses are the backbone of San Francisco, but for too long, our city has made it too difficult and expensive to get started,” said District 2 Supervisor Stephen Sherrill. “That’s why I called a hearing on the success and expansion of First Year Free—because when we cut red tape and lower costs, we make it easier to start and grow a business in San Francisco. Extending this program is an exciting step forward, and it’s our responsibility to make government a partner, not an obstacle, for entrepreneurs trying to invest in our city. I’m always proud to work alongside Mayor Lurie to ensure San Francisco remains a place where small businesses can thrive.”

“First Year Free has been transformative in helping to lower fees, remove barriers, and welcome amazing new small businesses to San Francisco. Today's renewal of this popular program is a significant step in showing interested entrepreneurs and business owners that San Francisco is open for business,” said District 3 Supervisor Danny Sauter. “It's fitting that we make this announcement at Wow Kids Playground, a family-run business that used First Year Free to open and has become a joyful space for countless children and families.”

“First Year Free provides immediate and substantive relief to new businesses, without any red tape,” said Treasurer José Cisneros. “We identify eligible businesses from their very first interaction with the city, and provide a seamless citywide experience so time-strapped small business owners can focus on growing their business in San Francisco.”

First Year Free, which started in 2021, has already saved businesses nearly $5 million in fees, supporting roughly 10,000 businesses. The program waives initial registration fees, license fees, first-year permit fees, and other applicable costs for qualifying new businesses and new locations of existing businesses. To qualify, businesses must have $5 million or less in San Francisco gross receipts and operate from a registered commercial location. Home-based businesses and short-term rentals are not eligible. Businesses that exceed $15 million in gross receipts in the year they commence or within three years must repay the waived fees.

The program is currently set to expire in June 2025. This legislation will continue the program through June 2026, ensuring that entrepreneurs have the support they need to grow and thrive as the city’s economy recovers.

“While small businesses face many headwinds, programs like First Year Free are making a real difference,” said Ben Bleiman, Director of Discover Polk and President of the Entertainment Commission. “By alleviating the burden of initial fees and offering support throughout the first year, the program empowers entrepreneurs to focus on growing their businesses, helping to create more jobs and productive spaces throughout the city.”

“The First Year Free program is an example of a policy that makes an immediate and real impact for entrepreneurs starting businesses in San Francisco,” said Katy Tang, Director of the Office of Small Business. “Many businesses save thousands—even tens of thousands—of dollars in start-up costs during a time when they aren’t yet bringing in revenue. Continuing the program for another year will not only extend its impact to more entrepreneurs, but the workers and neighborhoods that benefit from a vibrant small business sector.”