San Francisco supervisors are not ready to ditch a popular break for small businesses just yet. This week, the Board of Supervisors’ Budget and Appropriations Committee moved to keep the city’s widely used fee waiver program, "First Year Free," in place while departments sort out how to keep funding it. The program spares new and expanding small businesses from upfront permitting and registration costs, and supporters say that pause on fees helps entrepreneurs get storefronts open faster and fills long empty commercial spaces.
As reported by the SF Examiner, the committee advanced an ordinance sponsored by Supervisor Stephen Sherrill and sent it to the full Board for a vote expected next month. At the hearing, Supervisor Danny Sauter told colleagues that First Year Free has been a really nice thing for businesses to have right off the bat, a view echoed by business advocates who lined up to support extending the program.
How the program works
First Year Free launched in 2021 as a pilot championed by Supervisor Hillary Ronen and the mayor’s office to waive initial permit, license and business registration fees for qualifying new or relocating businesses. The city’s ordinance and the city’s board packet define eligibility, generally businesses with $5 million or less in San Francisco gross receipts, and spell out which applications, inspections and registration costs are covered. The program’s launch and eligibility details are described by the mayor’s announcement and documented in the city materials.
Money and timeline
According to the SF Examiner, the Office of Economic and Workforce Development proposed transferring roughly $881,000 from the Small Business Assistance Fund to support the extension while the Board considers the ordinance. City budget documents show that the assistance fund is financed largely by commercial vacancy tax receipts, which ties the program’s longevity to that revenue stream, and the city’s six-month report lays out how those vacancy tax dollars are allocated.
Who it helps
City materials and the Budget & Legislative Analyst report that the program enrolled just over 10,000 businesses since 2021 and provided more than $3.8 million in fee relief through June 2024. Local coverage and past city announcements highlight business owners, from a Mission District caterer to small wine and retail shops, who say the waiver helped them cover costly upfront build-out and permitting expenses. Supporters argue the waivers are a relatively low-cost lever to encourage neighborhood investment and reduce vacant storefronts.
The full Board is expected to take up the ordinance next month. If it passes, the city would continue the fee waivers while monitoring available fund balances and how many businesses are using the program. For entrepreneurs weighing a move or a new storefront, supervisors say the waivers remain practical relief in an expensive market.
