Mayor Lurie Extends First Year Free Program Helping Small Businesses Open and Grow

SAN FRANCISCO – Mayor Daniel Lurie today signed legislation to extend the First Year Free program, a key initiative that supports new and expanding businesses by waiving permit fees and initial business registration. The legislation was approved unanimously by the Board of Supervisors, extending the program through June 30, 2026.

The extension of First Year Free builds on Mayor Lurie’s work to support entrepreneurs as they open and grow businesses. Earlier this week, the Board of Supervisors advanced the mayor’s PermitSF legislative package, a program to make the permitting process faster and more transparent for homeowners and small businesses owners. The mayor has also signed legislation to support small businesses and reinvigorate neighborhoods, adding new entertainment zones across the city and strengthening public safety so that residents and visitors feel safe in every neighborhood by fully staffing the police force. 

“San Francisco’s success depends on the success of our small businesses and our administration is making it easier to start and grow a business,” said Mayor Lurie.  “The First Year Free program has helped thousands of new businesses by covering registration, permits, and other fees in their first year. By signing legislation to renew it, we have taken an important step to ensure small businesses across our city can continue to thrive.”

Since the First Year Free program started in 2021, nearly 11,000 businesses have enrolled, saving businesses at least $5.95 million in fees since the program started. In the last 12 months, the program has supported 2,904 businesses by waiving $2.12 million in fees.

“Small businesses are the backbone of San Francisco. But for too long, it's been too hard and too expensive to get started. First Year Free helps change that,” said District 2 Supervisor Stephen Sherrill. “By extending this program, we're continuing to cut red tape, lower startup costs, and make it easier to fill empty storefronts. That brings life back to our commercial corridors and boosts every business on the block. If you want to open a business in San Francisco, we want you here. I'm proud to work with Mayor Lurie to keep supporting programs that deliver real results for small business owners.”

“I love First Year Free and have happily co-sponsored the enabling legislation for the program since its launch four years ago,” said Board of Supervisors President Rafael Mandelman. “Congratulations and thanks to Mayor Lurie and Supervisor Sherrill for ensuring the continuation of this support for new small businesses.”

“Small businesses are the heart and soul of our neighborhood commercial districts,” said District 11 Supervisor Chyanne Chen. “Small businesses face many challenges, and this is a step in the right direction to provide relief, especially to smaller immigrant-owned enterprises who are just getting started.”

“I’m proud to support programs like First Year Free that make it easier to open shop in our neighborhoods and ensure San Francisco remains a city of opportunity,” said District 3 Supervisor Danny Sauter. “This initiative makes it easier for entrepreneurs to get started and invest in our city. By removing financial barriers up front, we’re saying loud and clear: San Francisco is open for business, and we’ve got your back.”

“Starting and sustaining a small business in San Francisco is incredibly challenging. Extending First Year Free is a great way to ease that burden. It helps entrepreneurs cut through red tape, lower startup costs, and build a stronger, more inclusive local economy,” said District 9 Supervisor Jackie Fielder. 

We must always be finding ways to cut the red tape and roll out the red carpet for small businesses and entrepreneurs,” said District 4 Supervisor Joel Engardio. “First Year Free ensures everyone with a good idea can have the runway needed to get their business up and running and turn their idea into the one that will save our local economy.”

“This program is about more than saving money—it’s about showing aspiring entrepreneurs that San Francisco is ready to welcome their ideas,” said José Cisneros, San Francisco Treasurer. “By eliminating startup fees, we’ve removed a key obstacle and opened the door to 11,000 new businesses. I’m proud that our office continues to lead this work with our partners across the city.”

“As Sunset Commons prepares for our grand opening in August, we are glad to have avoided hefty fees through the First Year Free program,” said Carmen Luk and Steven Lee, owners of Sunset Commons. “Opening a small business is hard work but we are committed to bringing a community space to the neighborhood we grew up in. Extending this program will allow more people to bring something special to their communities and contribute to a vibrant San Francisco.”

First Year Free is led by the Office of the Treasurer & Tax Collector, with support from the Office of Small Business/Office of Economic and Workforce Development, Department of Building Inspection, the Department of Public Health, Public Works Department, the Entertainment Commission, Fire Department, and the Planning Department.