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San Francisco Proposes Extension of First Year Free Program for Small Businesses

June 14, 2023 | San Francisco County, California


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San Francisco Proposes Extension of First Year Free Program for Small Businesses
The San Francisco County government meeting on June 14, 2023, focused on budget discussions and the extension of the First Year Free program aimed at supporting small businesses. Key points included proposed funding increases and adjustments to the budget for the upcoming fiscal years.

Treasurer Cisneros highlighted several budget changes, including funding for a new database to implement the empty homes tax and support for low-income residents through various programs. The budget breakdown indicated that 66% would support revenue collection, with additional allocations for treasury services and financial empowerment initiatives. Despite rising costs, the burdens on the general fund are expected to remain stable.

A significant topic was the First Year Free program, which waives fees for small businesses. This initiative, originally launched during the pandemic, has successfully waived nearly $1.5 million in fees since its inception. The proposed ordinance aims to extend the program through June 2028, although it would exclude home-based businesses and short-term rentals. As of June 5, 2023, the program has enrolled over 4,100 businesses.

However, concerns were raised regarding the funding for the program. While $1.4 million has been allocated for the first year, there is no funding proposed for the second year. Some supervisors expressed apprehension about the message this sends, suggesting that a longer-term commitment to funding is necessary to ensure the program's success and sustainability.

The meeting concluded with a call for further evaluation of the program's financial impact and the need for a more consistent funding strategy. The discussions underscored the ongoing challenges faced by small businesses in San Francisco and the city's commitment to supporting them through targeted initiatives.

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