San Francisco officials redefine small business criteria in funding discussions

The San Francisco County government meeting on July 4, 2025, focused on the definition and support of small businesses in the city. A significant discussion arose regarding the criteria used to classify small businesses, with a distinction made between the state definition of small businesses, which includes those with 100 employees or fewer and gross receipts of up to $15 million, and San Francisco's more stringent definition of 25 employees or fewer and gross receipts of $2 million or less.

Supervisor Chan raised concerns about the level of assistance provided to small businesses under this local definition, questioning how much support in terms of grants and loans is actually reaching these smaller entities. Executive Director Katie Tang clarified that the city’s Office of Small Business adheres to the definition established by voters, which aligns with the broader state criteria. However, she noted that many grant programs do consider the lower threshold of $2.5 million in gross receipts.

The meeting also highlighted the city’s financial efforts, with Mayor Breed announcing a total of $60 million in zero-interest loans available to businesses. However, Tang reported that only about $21.6 million in loans and $12 million in grants had been distributed so far, indicating that only a fraction of the total funds had been utilized. This raised questions about the equitable distribution of these resources, particularly for micro and small businesses that may lack the same access to funding as larger entities.

The discussion concluded with a commitment to provide a more detailed breakdown of the loan distribution to ensure that support is equitably reaching the intended small business demographic. The meeting underscored the ongoing challenges faced by small businesses in San Francisco and the city’s efforts to adapt its support mechanisms to better serve this vital sector of the economy.