NEWS
Small business newsletter for January 2026
Office of Small BusinessUpdates, trainings, announcements, and more, from the Office of Small Business
2026 is off to a busy start in San Francisco, and the newsletter highlights some key insights for small businesses. This includes the implementation of $10 million in license fee waivers beginning this year. It also features how to get involved in the Super Bowl coming to the Bay Area in February.
Key updates
NEW Business tax dates & reminders for 2026
In November 2024, voters approved Proposition M, which reformed San Francisco’s business tax structure. This restructuring allows the City to set aside $10 million each year to waive annual license fees for many small businesses starting this year. Many small businesses can expect fewer license fees. Additionally, Proposition M modified the following deadlines:
- March 2, 2026 – First joint Annual Business Tax filing and Business Registration Renewal deadlines under Proposition M rules and rates. View rates.
- March 31, 2026 – Approximately $10 million in certain permit, license, and other fees will be waived for businesses and individuals. Learn more.
- November 30, 2026 – New Annual Business Tax extension deadline to align San Francisco more closely with the California deadlines. (Note: Proposition M raised the small business exemption threshold to $ 5 million in San Francisco gross receipts.)
Carryout bag requirements change on January 1, 2026
State law (SB 1053) places new restrictions on the types of bags distributed at the point of sale by most grocery stores, retail stores with a pharmacy, convenience stores, food marts, and liquor stores.
- Effective January 1, 2026, stores are only allowed to distribute recycled carryout paper bags to customers for a minimum charge of ten cents ($0.10) per bag, including delivery bags.
- Stores are defined as retail establishments that meet any of the following:
- Makes over $2 million in gross annual sales that sells dry groceries, canned good, nonfood items and some perishable items.
- Has at least 10,000 sq ft of retail space and has a pharmacy.
- Is a convenience store, foodmart, or sells limited amount of milks/bread/soda/snack foods and holds a Type 20 or Type 21 liquor license.
- Is a convenience store or foodmart that sells goods for off-site consumption and holds a Type 20 or Type 21 liquor license.
- Bags used to contain unwrapped foods (produce or bulk food), dry cleaning bags, and pharmacy bags for prescription medications are exempt.
- This law does not apply to restaurants.
Learn more about new bag requirements.
New state law for corn masa products
Effective January 1, 2026, California requires corn masa flour and wet corn masa products be fortified with folic acid. Certain businesses, including cottage food operations, are exempt.
Read the FAQs about this new law
New Entertainment Venue Self-Post Program
SFMTA now allows entertainment venues and theaters to print and post their own official “Temporary Tow-Away No Stopping” signs following an approved permit application. The initial pilot program showed that venues can save approximately 30-50% on permit fees by putting up their own signs.
Learn more about the sign program
SF Health Care Security Ordinance (HCSO) Rates for 2026
Effective January 1, 2026, the expenditure rate for business with 100+ employees worldwide is increasing to $4.11 per hour payable. Businesses with 20-99 employees worldwide have an expenditure rate of $2.74 per hour payable.
Office of Small Business in the Community
Let us know if you would like the Office of Small Business to visit your corridor and share resources for small businesses. Please send requests to: sfosb@sfgov.org.
Coming up
New labor laws in California
All California employers must provide all employees a notice of their workplace rights by February 1, 2026 and every year after that. The CA Labor Commissioner has developed a notice template for 2026 that is available in English and Spanish.
Coffee shop lease available at SFO
Complete the Response Form by January 15
SFO has started the selection process for filling coffee shop leases in Terminal 3 Boarding Area E and the International Arrivals Terminal. If you are interested, you must complete the “Response Form.”
Learn more about the lease opportunity
AMEX Shop Small grant program
Deadline to apply: January 16 at 11:59 CT
This program will fund 500 grants of $20,000 each, empowering small businesses to grow, innovate, and support their local communities. This is a national program.
Learn more about the AMEX grant and apply
Participate in Boldly SF, with Star Trek and Paramount+
February 12-19, submit your listing by January 16
Boldly SF is a week-long, city-wide celebration inspired by Starfleet Academy, a new show streaming on January 15 on Paramount+. Host a themed event or promotion and share the information with Paramount+. They will send you a free digital asset pack and may be featured in their social channels. It’s free to participate.
Get your business ready for the Super Bowl
The Super Bowl is coming to San Francisco and the Bay Area in February. Here are several ways to leverage the event:
- Become an NFL Source Partner: NFL Source is a procurement program for local businesses. Complete the Vendor Interest Form to be notified of partnership opportunities.
- Host an event:
- Shop Dine SF will promote Big Game-related events in San Francisco. To be added to this page, please fill out this form. Tag @ShopDineSF on Instagram so we can give your event a boost.
- Learn the rules for marketing your event.
- Use general phrases in your marketing, like "Big Game" or "Football Championship"
- Post social media promotions with generic content such as #theBigGame or #TeamSpirit
- Don't use trademarked phrases like "Super Bowl," "NFL," "60" or "LX" in conjunction with host city name
- Don’t use team logos
- Don’t post social media promotions with trademarked materials such as the NFL logo or #SuperBowl
- Read Bay Area Host Committee’s Screening Playbook for more information
- Get a 15% Discount for the Super Bowl Experience: Bay Area residents and employees can get 15% off general admission tickets to the Super Bowl Experience at Moscone Center. Use promo code PARTNER15 at: Superbowl.com/ExperienceTickets. Note: you have to click "UNLOCK" after you select your time and then enter the code. Event runs Feb. 3–7. Kids 12 and under are free. Courtesy of the Bay Area Host Committee.
Learn business skills
January 12
Pricing for Profitability in 2026
Host: Renaissance Entrepreneurship Center
Format: In-person at Excelsior Branch Library
A practical workshop for existing food, product and retail businesses. Learn how to determine a profitable pricing model, manage rising costs, and plan for a financially stronger 2026.
January 13
The Worlds We Built: Resilience, Entrepreneurship and Belonging
Host: SF Public Library
Format: Panel at Main Library
Immigrant entrepreneurs Jeffrey Dumlao (Chartreuse by Roje), Nafy Flatley (Teranga), Naz Khorram (Arcana) and Wendy Lieu (Socola Chocolatier) share stories, inspired by The Worlds I See.
January 14
City Contracting 101
Host: City Administrator’s Office
Format: In-person workshop
For businesses to ask questions and get guidance from City staff at a variety of departments on10 Supplier onboarding, contracting, and compliance. This event is designed for SF-based small businesses who are ready to contract with the City or have question about the process.
January 15
Set, Connect, Launch – New Year Goal-Setting & Mixer for Small Businesses
Host: SF Public Library
Format: In-person at Main Library
Kick off 2026 with a practical goal-setting session and guided networking mixer designed to help entrepreneurs clarify priorities, build momentum and connect with supportive peers.
January 20
Business Plans That Work
Host: Norcal SBDC
Format: Webinar
Learn how to develop a detailed format for writing Business Plans. Facilitator Steve Roth developed this model over 40 years of investing and has successfully used it for hundreds of companies across all industries.
January 22
SF Small Business Tax & Compliance Clinic
Host: SF Chamber of Commerce
Format: In-person at YesSF
Join Pilot, the San Francisco Chamber of Commerce, Gusto, and YesSF for a hands-on event designed to help local business owners get fully prepared for the 2026 tax season. Get a customized 2026 readiness plan: checklists, timelines, and compliance reminders tailored to your business.
Legacy Business Spotlight
Heritage Happy Hour at Italian-American Social Club
January 8, 5:00 – 7:00 PM
Heritage Happy Hours offers a casual “no-host” gathering of heritage professionals, young preservationists, aficionados, friends, and Legacy Business cohorts interested in safeguarding San Francisco’s unique architectural and cultural identity.
The Italian American Social Club dates back to 1928 and hosts a variety of events from weddings and birthdays to dance workshops and church groups. Their space also includes a full restaurant, two bars, and catering services.