Budget committee advances amendments to expand San Francisco’s 'First Year Free' small-business fee waiver

The San Francisco Board of Supervisors’ Budget & Finance Committee on Oct. 19 advanced amendments to the city’s First Year Free program, which waives initial registration and certain business fees for qualifying enterprises, and continued the item to the committee’s Oct. 26 meeting for final action.

Chair Hillary Ronan introduced legislation to extend the enrollment period through June 30, 2023, raise the qualifying gross‑receipts threshold from $2,000,000 to $5,000,000, and remove a ground‑floor location requirement so businesses such as food trucks and market stalls can qualify. The ordinance would be retroactive to Nov. 1, 2021. Ronan said the changes respond to feedback from the Treasurer and Tax Collector and the Office of Small Business and aim to expand the program’s reach as the city recovers from the pandemic.

Nick Menard of the Budget and Legislative Analyst’s office reported that the program has waived about $441,000 in fees through August of this year and that the Board previously set aside roughly $4,000,000 in the Treasurer–Tax Collector budget to support the program. Committee members noted the program’s popularity: remote testimony from Sharky Laguana, president of the San Francisco Small Business Commission (speaking in his personal capacity), praised the expansion and said fee waivers have helped sway entrepreneurs who were “sitting on the fence.”

Ronan said she will add amendments broadening the types of commercial businesses eligible and then bring the item back; the committee voted unanimously to amend and continue the ordinance to the Oct. 26 committee meeting so staff can finalize language and materials. The committee’s action sends the amended measure on toward the Board process; the item will return to committee Oct. 26 before being placed on the full Board calendar.