Committee endorses one‑year extension of First Year Free small‑business fee waiver

The Budget & Appropriations Committee on March 20 voted to forward to the full Board an ordinance extending the "First Year Free" program through June 30, 2025, a program that waives certain first‑year permit, license and business registration fees for qualifying new small businesses.

Amanda Fried of the Treasurer & Tax Collector’s Office and Katie Tang of the Office of Small Business presented the item. Fried said enrollment is automatic when a qualifying business registers (under $5 million in San Francisco gross receipts and a commercial location), and that since the program began in November 2021 more than 6,500 small businesses have enrolled and roughly $3 million in fees have been waived. Tang offered examples of businesses that saved thousands of dollars in initial permit and license fees when opening new locations.

The Mayor’s Budget Office and BLA confirmed the extension can proceed without a new appropriation and that an estimated $2.2 million would remain available for the next fiscal year if the program were not extended. The Mayor’s Office said continuing the program is a priority and that it may be considered again as part of broader budget or tax proposals.

With no public comment, the committee voted 5–0 to forward the ordinance to the full Board with a positive recommendation.

Next step: full Board consideration as part of upcoming budget discussions or separate ordinance process.