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New Report Finds Mayor Breed's Small Business Streamlining Legislation to have Positive Economic Impact

Reforms that remove red tape to support small businesses and fill commercial vacancies could lead to up to $300 million boost to local economy, according to City Economist; Builds on previous efforts that have streamlined opening for over 4,200 businesses since 2021 and waived fees for over 3,600 businesses to open
October 30, 2023

San Francisco – Today, Mayor Breed’s small business streamlining legislation will be heard at the Board of Supervisors Land Use and Transportation committee. If approved, it will move onto the full Board for a vote next week. The legislation is co-sponsored by Supervisors Joel Engardio, Matt Dorsey, Myrna Melgar, and Catherine Stefani.   

A report issued by the City Economist in advance of Monday’s hearing found that the Mayor’s streamlining legislation for small business will have a positive economic impact in San Francisco. The report by the City Economist forecasted that the legislation could provide up to $300 million in economic benefit and create up to 2,400 new jobs.   

Under the legislation, changes to the Planning Code will serve to ease restrictions across five main categories:   

  • Allow more business uses on the ground floor   
  • Lift restrictions on bars and restaurants   
  • Incorporate new liquor license for music venues   
  • Simplify public notice requirements   
  • Enable priority permit processing for nighttime entertainment, bars, and restaurants   

The Land Use and Transportation Committee hearing is at 1:30 p.m. today at City Hall.   

This new legislation builds on the work that Mayor Breed has led over the last three years to change how San Francisco supports the ability of small businesses to open and operate, including passing new laws and a ballot measure and opening a new Permit Center where all City departments involved are located together in one space.    

“We have made significant progress in removing the red tape and offering financial incentives for small businesses to open and operate in this City,” said Mayor Breed. “Whether it’s by getting bureaucracy out of the way, waiving fees through the First Year Free program, or launching our one stop Permit Center, our goal is to be a city that lifts up our small business operators. When small businesses thrive, our neighborhoods and city thrive.” 

This legislation builds on the success of Prop H, which was passed by the voters in November 2020. Prop H required the City to shorten the permitting process for small businesses to 30 days in many areas, relaxed zoning restrictions, and allowed businesses to provide a more diverse mix of services without having to go through a lengthy permitting process 

Since Prop H began in January 2021, over 4,200 projects have benefitted from the program, which allows more small business projects to be processed over-the-counter and within a shorter time frame. 

It also works in concert with the First Year Free program, which was extended in the most recent budget. First Year Free waives the cost of initial registration fees, initial license fees, first-year permit, and other applicable fees for qualifying businesses. Since the First Year Free program started in 2021, over 5,400 businesses have enrolled in the program, with over 3,600 businesses benefitting from fee waivers totaling up to $2,211,731 thus far.  

These legislative reforms and extension of the First Year Free program are integral to Mayor Breed’s Roadmap to San Francisco's Future. One of the nine strategies is to make it easier to start and grow a business. Simplifying City processes while reducing cost will encourage more businesses to start and remain in San Francisco.

 

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