NYC Small Businesses Could Open Faster Under New Plan

NEW YORK, NY— Opening a small business in New York City often means waiting months for permits, inspections and approvals from multiple city agencies.

Two City Council bills aim to shorten that process by improving coordination among agencies and reviewing regulations that business owners say create unnecessary delays.

The proposals build on previous council efforts to ease requirements for small businesses, including reforms involving storefront security grilles, child care permitting and financial assistance for retail security systems.

"Small businesses are the economic drivers of our local economy and of vibrant neighborhoods, which is why we must be focused on making it easier to start and sustain them in our city," City Council Speaker Julie Menin said.

What Would The Red Tape Relief Act Do?

Introduction 955-A, known as the Red Tape Relief Act, would require the Mayor to establish a program that coordinates inspections and plan reviews among city agencies for new businesses.

The proposal is modeled after the former New Business Acceleration Team, created during the Bloomberg administration, which served as a single point of contact for businesses seeking approvals.

Under the bill, the program would initially focus on:

• Restaurants
• Food service establishments
• Child care programs

The City could later expand the program to additional business types.

The legislation also requires public reporting on the program's performance and allows the city to create an online application portal.

The City Council is expected to vote on the measure at an upcoming stated meeting.

What Would Menin's Bill Change?

Menin's proposal would establish a Quadrennial Regulatory Review Commission to evaluate city business regulations every four years.

The commission would examine licensing, permitting, inspections, fines and fees across several agencies, including:

• Department of Buildings
• Department of Consumer and Worker Protection
• Department of Health and Mental Hygiene
• Department of Environmental Protection
• Fire Department
• Department of Sanitation
• Department of Transportation

The commission would be chaired by a representative from the small business community and include city agency officials and City Council appointees.

Six months after appointments are made, the commission would issue recommendations to the mayor and City Council and publish its report online.

Why Are Lawmakers Proposing These Changes?

According to the New York City Economic Development Corporation, only about 3,500 new businesses opened during the second quarter of 2025, the lowest quarterly total in five years.

During the same period, approximately 8,400 businesses closed, resulting in a net loss of nearly 5,000 businesses citywide.

Supporters of the legislation said reducing administrative delays could help entrepreneurs open sooner and lower startup costs.

"As an immigrant who came to this city seeking opportunity, and as the daughter of a small business owner, I have seen firsthand what it takes to build something in New York," council member Susan Zhuang said.

She said the legislation would revive a model that previously helped businesses open more quickly.

What Was The New Business Acceleration Team?

The New Business Acceleration Team operated during former Mayor Michael Bloomberg's administration.

Rather than requiring businesses to schedule separate reviews with multiple agencies, NBAT coordinated inspections simultaneously.

According to the City Council, businesses participating in the program reduced their average opening time by 45 days, and more than 1,500 restaurants opened ahead of schedule before the program ended during the de Blasio administration.

The Red Tape Relief Act would create a similar system.

Andrew Rigie, executive director of the New York City Hospitality Alliance, said restaurant owners often face lengthy delays because several agencies conduct separate inspections.

"Opening a restaurant in New York City means navigating an alphabet soup of government agencies, from DOH and DOB to FDNY and many more," Rigie said.

"Too often, delays in permitting and inspections keep restaurants from opening, workers from getting hired, and neighborhoods from benefiting from new small businesses."

He said the legislation would help restaurants open sooner and create jobs more quickly.

What Happens Next?

The City Council is expected to vote on the Red Tape Relief Act at an upcoming stated meeting.

Menin's proposal creating the Quadrennial Regulatory Review Commission will also be introduced for council consideration. If enacted, the inspection coordination program would take effect 180 days after becoming law.