In 2021, the 'First Year Free' program waived initial registration, license, and permit fees for new small businesses through October 31, 2022. It had certain limitations such as a business ceiling of $2,000,000 in annual San Francisco gross receipts and a location requirement on the ground floor.

The amendment waives retroactively to July 1, 2023, first-year permit, license, and business registration fees for specified small businesses that newly form or open a new location, without the previous requirement to be on the ground floor, and increases the gross receipts ceiling to $5,000,000.

This ordinance is intended to promote equitable economic recovery, focusing on small businesses, lowering barriers for new businesses, and stimulating job creation in commercial corridors and among communities of color and immigrant communities.

The changes support a robust recovery from the economic downturn caused by the COVID-19 pandemic, fill commercial vacancies, sustain and encourage new small businesses, and provide a pathway of economic development and wealth creation for marginalized communities.

Upon the ordinance's effective date, it will be retroactive to July 1, 2023. The Mayor and Board of Supervisors are involved in enacting the ordinance.

Audits and reporting measures are in place to ensure compliance with the fee waiver requirements, with repayments required if a business does not meet the criteria or exceeds the gross receipts threshold. Refunding of waived fees is also provisioned in the ordinance.