Red Tape Relief Act would create new interagency inspection coordination program modeled after New Business Acceleration Team and new bill would establish commission to review and issue recommendations on regulations, permitting, and fine reduction
Today, New York City Council Speaker Julie Menin, Council Member Susan Zhuang, the New York City Hospitality Alliance, and small business owners announced a pair of bills to support small businesses by cutting red tape, reducing fines, and streamlining inspection, permitting, and approval processes. The legislation builds on previous bills enacted by the Council to alleviate challenges facing small businesses, including repealing the requirement for commercial storefronts to install visible security grilles, establishing a small retail business security system program to provide financial assistance, and streamlining child care program permitting.
A Preconsidered Introduction, sponsored by Speaker Menin, would create a Quadrennial Regulatory Review Commission to study the regulatory framework for businesses and issue recommendations related to easing permitting, licensing, inspections, and reducing fines and fees. The Commission would be chaired by a small business representative and include appointees from the Council and city agencies. This bill will be introduced at Thursday’s Stated Meeting.
Introduction 955-A, also known as the Red Tape Relief Act, sponsored by Council Member Zhuang, would require the Mayor to establish a program, modeled after the Bloomberg-era New Business Acceleration Team (NBAT), to coordinate inspections and plan reviews among city agencies to reduce the time it takes for small businesses to open. The Council is expected to vote on the Red Tape Relief Act at the upcoming Stated Meeting.
Photos from the press conference can be found here.
“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,” said Speaker Julie Menin. “My new bill will establish thoughtful, periodic reviews of city regulations, fines, and permitting, with the goal of reducing the barriers for establishments to succeed. At a time when New York has lost thousands of businesses to other cities across the country, our city must take proactive steps to support them. I look forward to advancing this innovative bill and establishing the Quadrennial Regulatory Review Commission to begin its work.
“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,” said Council Member Susan Zhuang. “Too many entrepreneurs, especially immigrant entrepreneurs, spend months or years lost in red tape just trying to get their doors open. I introduced this bill because our small business owners deserve a city government that works with them, not against them. This legislation brings back a model that worked before and gets restaurants and childcare programs open faster. I thank Speaker Menin and my colleagues for their partnership in getting this done, and I’m proud to champion small businesses across our city.”
According to a January 2026 economic snapshot by New York City Economic Development Corporation (EDC), only 3,500 new businesses started in the five boroughs in the second quarter of 2025, the weakest quarter of new business formation in the last five years. With an estimated 8,400 businesses closing during that same period, New York City lost a net of nearly 5,000 businesses, underscoring the importance of supporting small business creation.
Speaker Menin’s bill will establish a Quadrennial Regulatory Review Commission, which will meet every four years and issue recommendations to improve government processes, policies, and rulemaking to make it easier to create, operate, and grow businesses in New York City. The Commission will review regulations within the following city agencies:
- Department of Consumer and Worker Protection (DCWP)
- Department of Health and Mental Hygiene (DOHMH)
- Department of Buildings (DOB)
- Department of Environmental Protection (DEP)
- Fire Department of New York (FDNY)
- Department of Sanitation (DSNY)
- Department of Transportation (DOT)
The Commission will be chaired by a member of the public representing the small business community. It will include representatives from the city agencies being reviewed and Council appointees. The bill will require the Commission to issue a report with its recommendations six months after appointments are made. A report from the Commission will be required to be sent to the Mayor and Council and posted online.
Opening a small business in New York City typically requires approvals from multiple city agencies, including DOB, FDNY, DEP, and DOHMH. Reviews and inspections often take months to complete, with total permitting timelines often stretching beyond six months for food and beverage establishments. Small business owners must navigate a complex and bureaucratic system, which presents challenges that disproportionately impact immigrant entrepreneurs and first-time operators.
Under the administration of then-Mayor Michael Bloomberg, the City administered the NBAT. NBAT served as a single point of contact to coordinate reviews and inspections across relevant city agencies simultaneously. As a result, businesses that worked with NBAT reduced their time-to-open by an average of 45 days. More than 1,500 restaurants opened ahead of schedule due to the program, which was discontinued during the administration of former Mayor Bill de Blasio.
The Red Tape Relief Act, which will establish a program modeled after NBAT to support small businesses, will cover new food service establishments and child care programs, but can include other types of businesses. The bill also requires the City to publicly report on the effectiveness of the new program to advance transparency and accountability. It also allows the City to provide an online application portal for prospective businesses to enroll in the program.
The legislation takes effect 180 days after it becomes law.
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