San Francisco’s initiative to foster small business growth, known as the First Year Free program, could see an extension following favorable feedback from Mayor Daniel Lurie. Originally set to conclude this summer, the program is now on track to be available until June 2026.

Program Overview and Benefits

Launched in 2021, the First Year Free program allows new ventures to operate without worrying about various fees during their initial year. Key benefits include:

• Waived registration and license fees
• Eliminated permit fees

The initiative targets new businesses and existing entities launching new locations. According to city data, over 9,600 businesses have already taken advantage of the program.

Eligibility Criteria

To qualify for the First Year Free program, businesses must meet specific requirements:

• Gross receipts must be less than $5 million within the city
• A physical commercial location is necessary; home-based enterprises do not qualify

Additionally, businesses that exceed $15 million in gross receipts during their first three years must return the waived fees.

Eligible businesses will receive automatic evaluations through the city’s Office of the Treasurer & Tax Collector when they register.

Mayor’s Commitment to Small Businesses

Mayor Lurie emphasized the importance of supporting local entrepreneurs. “I have heard from countless small business owners that it can feel like government is working against them. My administration is not OK with that, and we are fixing it,” he stated in a recent press release.

Complementary Initiatives and Future Plans

The proposed extension of the First Year Free program aligns with a wider set of measures aimed at revitalizing the city’s business environment. These measures include:

• Streamlining the permitting process through a working group known as PermitSF, led by Planning Department Director Rich Hillis
• Advocating for an increase in liquor licenses to bolster the nightlife scene, particularly downtown

The effort to expand liquor licenses is part of a bill sponsored by State Senator Scott Wiener, which aims to introduce 20 new permits within a designated “hospitality zone.”