Reducing Barriers for Small Businesses

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Good afternoon. Welcome to the New York City Council Committee on Small Business. Please place your phone on silent or vibrate mode. At any time during this hearing, do not approach the dais. We are ready to begin. This hearing is now called to order.

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Good afternoon, everyone. I am CM Shanel Thomas-Henry, Chair of the Committee on Small Business. Thank you for joining today's small business hearing. I have been traveling across the City speaking with business owners, and top of mind is outdated regulations and daily disruptions. With the goal of meeting entrepreneurs where they are and being responsive to their unique challenges, this hearing will focus on discussing three bills and a resolution that do just that.

These include Int 0799-2026 from CM Salaam, Int 0910-2026 from CM Stevens, a Preconsidered Introduction from CM Long and Res 0328-2026 from CM Salaam as well.

I would like to thank my Council colleagues, representatives from the administration and members of the public for being here, as well as members of the public participating remotely.

Small businesses are the lifeline of New York City. They provide us with the diversity of experiences and are the first line of defense for preserving and celebrating the unique cultures that make us great. Beyond this, they help shore up our middle class by acting as engines of economic mobility, especially for our immigrant and minority communities who do not always find the means to enter and stay in the traditional workforce. Despite this, the City has fallen short in its support of our beloved small businesses.

Becoming an entrepreneur is not easy. Many would-be business owners never end up starting because they must navigate so much of the regulatory process alone, coupled by the lack of access to capital to start their business and pay the workforce to put it into operation and grow. This journey becomes a daunting experience and roughly 20% fail in the first year. Even when businesses finally get off the ground, many of them continue to operate on razor-thin margins.

In New York City, the Department of Small Business Services exists to help support these pioneers. They help entrepreneurs navigate and adhere to regulations and provide them with funding streams when needed. The bills that we are hearing today will further allow this mission by centralizing tools to address the real and unique challenges our entrepreneurs face.

In today's hearing, we will discuss Int 0799-2026, Int 0910-2026, a Preconsidered Introduction and Res 0328-2026. Int 0799-2026 from CM Salaam would require the City to provide small business owners with financial assistance when roadway construction negatively impacts them. The Bill will also set deadlines for when applications need to be reviewed and when funds need to be dispersed.

Similarly, CM Salaam's Res 0328-2026 would ask the State of New York to provide a tax credit to business owners impacted by infrastructure construction. CM Salaam's legislative measures would help ensure that we are not letting our businesses suffer from actions taken by the City.

Int 0910-2026 from CM Stevens would repeal the requirement in Local Law 75 that all businesses must have 70% see-through security grilles by July 1. Instead, they would only be required to buy that specific security grille when obtaining a replacement. The Department of Buildings would also be required to perform outreach in the following six months to educate business owners of this requirement. This Bill will also help ensure small businesses are not unfairly penalized by a law that they were never informed about in time.

CM Long is here today and would like to speak to us about her Preconsidered Introduction. This Bill would require the Mayor to establish a program to coordinate inspections and plan reviews among City agencies to speed up the time it takes to open a business. CM Long's Bill would help make things a little bit easier for entrepreneurs.

The legislation that we hear today will not address all the systematic issues burdening our small businesses, but it is a start and it is timely. I look forward to hearing testimony from the Department of Small Business Services and hearing their positions on these bills. I similarly look forward to hearing from small businesses and advocates. I want to thank Rebecca from central staff for putting the work together for this hearing, as well as my own staff, Franklin Richards, Sierra Smith and Derek Slaughter, and anyone working in the background to help make this hearing possible.

I will now turn it over to CM Salaam to provide an opening statement on his Bill.

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Thank you, Chair Thomas-Henry, and thank you to the members of this committee for hearing these two items today, including all of the other bills as well. My Bill, Int 0799-2026, establishes a roadway construction small business support fund, and Res 0328-2026, the companion measure, calls on the State Legislature to pass the designed legislation providing a tax credit to businesses negatively affected by infrastructure construction.

I represent Central Harlem, a district built on the backs of small business owners. The barber who has cut three generations of hair on the same block, the restaurant where neighbors gather, the bodega that knows your name — these businesses are not just commerce. They are the fabric of our communities.

But here is the hard truth: when the City tears up the street to repair infrastructure beneath it, and we know that that work is necessary to keep our City running, the small businesses on that block often pay the price. Foot traffic disappears, deliveries cannot get through, customers walk to the next avenue, and as projects last 30, 60, 90 days and sometimes more, this can be the difference between a business that survives and one that closes its doors for good.

That is not fair. A small business owner did not choose that construction. They should not bear the financial burden of work that benefits the entire City. Int 0799-2026 establishes a support fund of loans, grants and services administered through Small Business Services to help these businesses adapt and stay open. Res 0328-2026 calls on Albany to do its part with a tax credit so that relief reaches every affected business across the State.

Other places have already acted. We see that in Minnesota. Studies have already shown this to be successful. New Jersey built a program for Route 80. Florida moved on disruption assistance. New York should lead and not follow. Small businesses are the backbone of our economy. When the City asks them to endure disruption for the common good, the City should also stand with them.

Thank you, and I look forward to your testimony.

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Thank you. In addition to being joined by CM Salaam and CM... apologies. We are also joined online by CM Santosuosso. I will now turn it over to CM Long for opening remarks.

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Thank you, Chair, and I know you are always a fighter for small business owners. Thank you for holding this hearing about my Preconsidered Introduction. Opening a small business in New York City is one of the most time-consuming and complex processes in the country. People must obtain approval from multiple City agencies with almost no support. A standard plan review can take 4 to 12 weeks under DOB and other agencies, with total permitting timelines often

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stretched to six months or more. That is why the Red Tape Relief Act is designed to create a new interagency inspection coordination program modeled after a proven initiative that cut the time to open a new business in New York City by two to three months. The item is that the administration let this program quietly fade out.

This legislation restores this program to streamline the multi-agency permitting process. Restaurants and child care programs will be prioritized, and we would expand it to additional business types later. The history shows this program was successful before. It previously reduced restaurant permitting time from six months to four months and helped over 1,500 businesses open two to three months faster, so business owners can put more money in their own pockets. It would actually generate $9 million more in tax revenue by speeding up restaurant openings.

This new legislation will be permanent and amended to help small business owners. It will reduce the time needed to open a new business with interagency coordination of inspections, so small business owners do not have to run around between agencies. It will allow the administration to prioritize independent small business owners, especially for some business types. It will require an online application portal to make it easier and more user-friendly. It will produce a yearly report starting December 2027 so we will have new data to track this program and the progress for small business owners.

New York City is home to one of the most diverse small business communities in the world. 50% of small business owners are immigrants across the five boroughs. Long permitting timelines hit those business owners hardest. They often lack the legal and financial resources to deal with months of delay. The Red Tape Relief Act is an investment in the economics of every neighborhood in New York City. So I am asking everyone to please support this Bill. Thank you.

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Thank you, CM. CM Stevens could not join us today. However, I want to thank Chair Thomas-Henry for your leadership on the Committee on Small Business and for hearing Int 0910-2026 today. I also want to thank our Speaker for recognizing the importance of this issue and supporting efforts to ensure that our small businesses are not burdened by unnecessary costs.

Small businesses are the backbone of our neighborhoods. They create jobs, provide essential services and contribute to the character and economic vitality of our communities. Yet every day they face increasing challenges, from rising rents and inflation to higher operating costs and workforce pressures.

That is why Int 0910-2026 is so important. This legislation takes a common sense approach to the implementation of Local Law 75 of 2009 by ensuring that business owners are only required to comply with updated security grille standards when replacing their existing security grilles. If a security grille is functioning properly and continues to serve its purpose, a business should not be forced to spend thousands of dollars replacing it before it is necessary. We have heard directly from business owners across the City who are concerned about the financial burden this mandate would create. For some establishments, replacement costs could exceed $10,000. That is money that could otherwise be invested in hiring employees, purchasing inventory, improving storefronts or expanding operations.

This Bill does not compromise safety in any way, as businesses will still be required to comply with updated standards when replacement becomes necessary. What this legislation does is provide flexibility and fairness while recognizing the economic realities facing our local entrepreneurs.

Int 0910-2026 also strengthens accountability by requiring reporting on implementation and impacts. This ensures the Council can monitor how the law affects small businesses, identify challenges and make future policy decisions based on real-world data rather than assumptions.

I am proud that this legislation has earned the support of 34 Council members, because this issue impacts businesses in every borough and every district. It is a practical solution that balances public safety, economic stability and government accountability. I hope my colleagues will continue to support this legislation and move it forward.

Small businesses have carried our communities through difficult times. Today we have an opportunity to support them by removing an unnecessary financial burden while maintaining the safety standards our City expects. Thank you.

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I will now turn it over to committee counsel to administer the oath before we hear from the administration.

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Please begin when ready. Good afternoon. Good afternoon, Chair Thomas-Henry, members of the City Council Committee on Small Business. My name is Kenny Minaya and I am the Commissioner of the New York City Department of Small Business Services. I am pleased to join today's hearing with Assistant Commissioner Ronaldo Hilton from the Department of Buildings and my colleague, Director of Intergovernmental Affairs Jason Ade as well.

The mission of SBS is to deliver economic security for all New Yorkers by connecting them to good jobs, supporting small businesses and investing in our neighborhoods. There are over 126,000 storefronts in New York City, and we are committed to ensuring small business owners are empowered to operate and grow their businesses as seamlessly as possible. Our support includes affordable capital connections, compliance consultations and reform advocacy to make it easier to do business in New York City. Just two weeks ago at our Small Business Month Expo, we brought nearly 2,000 New Yorkers under one roof to connect with City agencies, industry experts and resource providers.

Since becoming Commissioner, I have made it a priority to visit as many business corridors as possible and hear directly from small business owners, advocates and community leaders about the evolving challenges facing our City and the urgent reforms needed to help small businesses across the five boroughs thrive.

The three bills and the resolution attached to this hearing seek to address some of these business challenges. Int 0910-2026 would repeal the requirement that all security grilles installed at businesses located in Group B or M buildings have 70% visibility by July 1, 2026, or be subject to a fine. SBS fully supports the Bill and believes it can go further by prioritizing business choice, and we look forward to working with the Council to craft a version that provides business owners with the choice to install security grilles with the visibility features that best meet their needs.

Int 0799-2026 would require SBS to establish a program offering loans and grants, among other supports, to help small businesses offset expenses incurred due to City construction projects. SBS supports the intent of the Bill but we have some operational concerns with its implementation. However, we will continue to facilitate connections to affordable capital through our seven Business Solution Centers, the Future Fund and the Fund Finder Marketplace.

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Turning my attention to the Preconsidered Introduction: the Preconsidered Introduction would require the Mayor to establish a program that would plan and coordinate agency inspections for businesses to reduce the time needed to open. The administration supports the intent of the Bill and our team is proud of our efforts to reduce opening timelines in New York City. As part of Executive Order 11, we conducted a time-to-open analysis to better understand the status quo and generate insights for reform. SBS delivered those recommendations to the Deputy Mayor for Economic Justice earlier this year.

The administration has also demonstrated its commitment to cutting red tape through the expansion of our SBS BEST team, which gets small businesses to opening day by liaising and advocating with regulatory agencies on behalf of small businesses. Since the start of the administration, our BEST team has helped businesses save over $6 million. As such, we are supportive of the goals of CM Long's Bill and we look forward to partnering with the Council to advance reforms as part of Executive Order 11.

Thank you so much for the opportunity to testify about SBS's work and how we can make it easier to start, operate and grow a small business in New York City. I look forward to our continued partnership to empower small businesses, and I welcome your questions.

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Thank you. I want to mention that we have also been joined by CM Maloney and CM Morano. Do we have a representative from... what are you representing? Okay. First, questions for you on Int 0910-2026.

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So under Local Law 75 of 2009, the Department of Buildings was required to develop an outreach program beginning in 2010. Can you explain what the outreach looked like? Thank you, Chair.

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So, first of all, I do believe there are always opportunities to improve outreach in general. The more outreach to the affected parties, the better. Of course, there was some initial outreach conducted when the law was first enacted, and a few years

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Later after that, it is first worth noting that the law had a long runway — 15 years to be exact — from the time it was passed to the effective date of the law, which is coming up July 1. However, all subject buildings in Group B and M mercantile occupancies are not required to comply with 7% visibility until July 1 of 2026. And this is for buildings that have been shuttered, for example, and opened under new ownership during the interim period, which could mean some owners may not have been so much aware. So that is a little caveat to your question there. But anyway, leading up to July 1, 2026...

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...the compliance date by which existing grilles must be replaced, the Department has been ramping up its outreach efforts and has used various avenues for getting the word out to owners. These include the insurance service notice, a construction advisory and other media communications. Information was shared via social media platforms. We partner with our colleagues sharing information. We have attended — myself included — Business Improvement District meetings in various boroughs to share information regarding the law and to respond to questions from business owners. And of course, on the internal side, we have also been answering a lot of customer service inquiries through our web portals. That has been the extent of our outreach.

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So nothing prior to the beginning of this year? I believe that is correct. I think it was late last year. Nothing prior in 15 years. Also in 15...

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...years. So there was no... I did not mention before that at the very onset, upon passage of the local law, there was outreach done very, very early. But that was 15 years ago. I know I was alive at that time, but I do not know the extent of the outreach. But I do recall — I know for a fact — that the Department of Buildings had published a service notice advising of it. But I am not sure how much outreach apart from that was done.

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Based on our records, there was no outreach from 2010 to 2025. So just assuming something was published in 2010, there was no additional outreach made until the end of 2025 for a law going into effect this year.

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I am not able to affirmatively confirm that. Okay.

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Okay, so what did the outreach beginning at the end of 2025 look like? How many businesses did you reach out to? You mentioned social media and assistance from SBS, but what did that look like?

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We did a service notice, which goes on our website, and folks who are signed up for buildings information are able to see that. How many people have signed up — I do not know that number. But that is a way for people to get information. We have also issued a construction advisory, which basically outlines what you would need to do with security grilles, also covering the permit requirements and so forth. And of course you mentioned the social media platforms. But most importantly, we have worked with SBS in giving information and disseminating it to those businesses. We do not have a list of businesses — the Department of Buildings does not do that. So we are dependent upon those kinds of connections to disseminate, especially since we do not know if there is a security grille at a particular business. We do not know who those people are, so individual outreach to those folks is not possible for the Department of Buildings. We can just put information out generally.

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Out there. Chair, I can supplement Assistant Commissioner Hilton's answer somewhat. So we, in partnership with SBS, were able to reach 60,000 business owners through our newsletter mailing lists. In addition to that, my first week on the job I convened a regular monthly BID call and this was the topic of presentation to our BIDs, which was also joined by members of the Small Business Advisory Commission. On top of that, through our corridor walks, we have made sure to get information out to business owners about this law and its implications so that they are aware as well.

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I have no doubt, because it was not until this year that business owners sounded the alarm that this was coming into effect. So thank you for that. Going back to DOB, though — if a business is not signed up to receive construction news, they would not have gotten anything from the Department of Buildings about the gates. Correct?

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Now I mentioned the other methods, such as social media, our website information, construction advisories and so on. The Department of Buildings does not deal directly with businesses except for when they do filings with us. So any new businesses that opened up between 2010 and 2025 would have had to seek a permit from the Department of Buildings to do so. Correct?

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Between 2011 and 2025. Yes. At that time, were any of those businesses made aware that if their security gates were not up to code, they would need to be brought up to code by July 1 of this year?

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They would be required — if they were filing for a permit and their construction plans involved a security grille, they would be notified during plan examination that that grille would have to be up to code.

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Let us take, for instance, say I open a business at the beginning of 2025. As part of my permit process, is there anything — or is there an inspector who is going to tell me, when they come to my business, that my security gate has a beautiful mural on it, so there is no visibility at all? Is someone going to tell me at that point in time, "Hey, you are going to have to...

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...replace this in the next year and a half?" Well, we do not know — we do not see pictures. We do not have a picture of what their buildings look like. They have to... we are looking at the plans. If the gate has a beautiful...

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...mural, I see. But during plan examination, they are presenting a set of plans to the Department as to what they need to do. If it involves a security grille, they would be told at that time that the security grille would have to come into compliance during plan examination.

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Okay, so when we pass a law like this in the Council and it was stated that DOB would do the outreach, where is the disconnect in terms of when the outreach starts? Is there immediate coordination with...

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...SBS to do that outreach? Like, you can tag team one another — does SBS assume they will do that outreach? I am just trying to figure out why, in 15 years, none of our businesses — except if they signed up for bulletins — were alerted that the grilles needed to be...

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...updated. Yes. So as I said before, I think there were some missed opportunities by the Department, maybe by both agencies, to coordinate that. But as I said, there was a 15-year-long runway. There was a lot of legislation that came through in that time that the Department of Buildings would have to prepare for, and I think that long compliance period may have displaced some of that awareness on the Department's side. So we apologize for that if that was the case. But yes.

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I am going to hold on questions for a moment and let some of my colleagues ask. Actually, one more question — I will turn it over to CM Salaam. Thank you for your testimony. This is in relationship to Int 0799-2026, which sets per-business caps of $50,000 for loans and $15,000 for grants per storefront per year. Would it strengthen the program to pair those with an annual aggregate ceiling that the agency could adjust each fiscal year based on demonstrated demand and available appropriation, so that the program scales responsibly with the needs rather than committing the City to an open-ended obligation?

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Does Small Business Services see administrative value in that structure? And would the aggregate ceiling be best set by agency rule or through the annual budget appropriation itself?

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Thank you for the question, Council Member. I think any time you provide flexibility to be able to match the resource to the need and try to get the biggest bang for our buck on that resource, I think that is always welcome.

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So let us say that an annual ceiling for the program that is appropriated each year is built into this legislation. The per-business grant and loan is a maximum of $50,000 for loans and $15,000 for grants, functioning as a permanent upper limit per business that can never be exceeded no matter how large the program's annual appropriation grows. In a year where the aggregate ceiling is lower, however, the per-business maximum could be scaled down proportionately so that limited funds reach more businesses rather than being exhausted by a few. Does the agency see this fiscal structure as workable to...

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...administer? I think that speaks to some of the operational concerns we have with the Bill. I mean, historically when we have implemented products like this — whether a fund account or a sandwich fund — we do those in partnership with a community development financial institution. So the more requirements we have, the more challenging it becomes.

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Understood. And for the loan component, would it help the program's long-term sustainability to build in basic criteria such as creditworthiness or repayment capacity, so that loans support businesses positioned to recover and repay the fund so that it can keep revolving? And what criteria extend credit responsibly without screening out the businesses that in fact need it most, as with any other loan product?

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We want to make sure that we have strong underwriting standards in place to make sure that we are assessing the ability of the business to pay back the loans. But also, one of the things that we try to focus on at our Business Solution Centers is making sure businesses are ready to apply for loans — helping them get credit-ready. We certainly would continue to do that work in service of this Bill and this product and any other future products.

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This Bill requires a determination no later than 14 days before construction begins and disbursements within 14 days of approval. To ensure that promise holds at scale, what systems or staffing would help the agency guarantee those timelines even in a year with many concurrent projects? We want speed built into the foundation of this program rather than added later.

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And I think that harkens back to one of the operational concerns we have with the Bill — the timelines. We would partner with somebody to help distribute these funds and we certainly would not want to prescribe timelines on their review as well.

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Gotcha. This Bill tasks the agency with writing eligibility guidelines to keep the program targeted and defensible. Would it help to anchor eligibility in objective market markers such as documented construction duration, demonstrated access limitations and proximity to the work zone, so that determinations are consistent and businesses know exactly what qualifies? What objective criteria would the agency find most workable to administer, and how would it distinguish losses attributable to City construction from broader economic...

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...conditions? Absolutely, Council Member. I think there is always a trade-off. So in the Bill as written, there is a spirit of speed — of trying to get the resources to the businesses as quickly as possible. In order to achieve that, objective criteria is critical. You do not want to have to do a novel review for every single application as a unique review. You want everything to be as standardized as possible. So we would certainly support a change along those lines. Thank you.

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Thank you, CM Morano.

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Thank you very much, Chair. And thank you on a personal note for coming out to Staten Island to visit some of the small businesses in my district. I appreciate your leadership of this Committee and taking the time to actually hear from small business owners on the ground.

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It meant a great deal to them. Commissioner, thank you for your testimony as well. I would love to show you around some of the small businesses in my district as well.

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You mentioned that you recently completed a time-to-open analysis and delivered recommendations to the Deputy Mayor. I would love to start there. What is the current average amount of time it takes to open a small business in New York...

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...City? So in our analysis, what we found is that it varies. Council Member, you can imagine — on one end of the spectrum you have a business that just needs a single license to operate, and that will have its own shorter timeline. Then on the other end of the spectrum we are talking about a gut-rebuild renovation, and those construction timelines are long. So it varies. There is no single...

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...marker there. I guess what I am trying to get at is, before you undertook these reforms, what was the difference? How many days have actually been eliminated from the process as a result of the administration's efforts, understanding that it varies?

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Just a point of clarification there, Council Member — the proposed reforms are still forthcoming. According to...

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...Executive Order 11, those are due soon, so we are still working through this issue, listening to small business owners about what their pain points are. Got it. And planning accordingly. You also referenced the BEST team and you mentioned it has helped save businesses more than $6 million. That is a significant figure. How exactly is that number calculated? Is it actual dollars saved, fees avoided, consultant costs avoided or a projected value of time saved?

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And how many businesses generated that $6 million in savings?

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Sure. So it is a fines-avoided number. I actually had the privilege to sit in on one of these compliance education visits, where a dedicated staff member walked around the business, met the business owner at the location and pointed out items that needed to be corrected. Each of those items, as we know, if a summons is issued in a real-life situation, has a dollar amount allocated to it. And that is how we calculated that number. As far as the number of businesses served, let me see if we have that for you — or basically the average benefit per business. I just have that number in the aggregate, but I will ask and see if we can pull that...

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...up. Got it. Thank you. One thing I do worry about is that government often measures activity rather than outcomes. So let me ask a bit of a different question. For every hundred entrepreneurs who begin the process of opening a business in New York City, how many actually make it to opening day? Do we track that figure? Do we know how many people simply give...

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...up? What I can speak to is that just in five months of this calendar year we have helped 58 businesses open their doors through the BEST program. Just last week at the Small Business Month Expo, we heard from a business owner who just opened — talking about the frustration of having to try to navigate the process on her own, and then when she approached BEST, being able to cut down opening time and open two months early.

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My last question on the construction bill — and I guess this would apply potentially as well. I represent Staten Island and my constituents certainly are not opposed to infrastructure projects. They are opposed to projects that appear poorly coordinated, poorly communicated and endlessly delayed. Have we calculated the economic impact on small businesses when a government construction project exceeds its original completion date? Do we know how much revenue is lost when construction drags on for months or years beyond schedule? And if we do not know that number, how can we determine what level of assistance is appropriate?

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Thank you for the question, Council Member. So we do not know that number, and part of the reason why we do not have that number is that it would require business owners to share revenue data with a government entity before and after the project. But I can speak to anecdotal reports of frustrations that I have heard and anecdotal reports from business owners of lost productivity as a result of a construction project taking place in front of their business.

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Thank you very much. Thank you, Counselor. And just one more...

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...point. I will see you in Staten Island next week. Looking forward to it.

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Wise, do not go showing off because I want to stand...

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...now trying to keep up with the Chair.

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No, thank you, CM Morano. I had a lovely time in your district and cannot wait to get back. At this point, while we do have a quorum, I do want to turn it over to CM Salaam, who is...

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...online. Good afternoon. Can you hear me? Yes, we can. Thank you, Chair. I just have one question for Commissioner Manu and one question for Deputy Commissioner Hilton. So, Commissioner, you were talking about how you have some reservations about the legislation — referring to Int 0910-2026 — and wanted to further discuss the potential for choice. Can you talk more about what you mean by that?

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Absolutely. Thank you for the question, Council Member. So as I mentioned, I have tried to do a lot of business engagement in my first few weeks on the job, and one of the consistent points I have been hearing from business owners as it relates to the security grille requirement — separate from the cost — is: why is what is being proposed in the law not what works for me in my borough, in my neighborhood?

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So I have brought back that feedback from business owners, and I think we should try to find a way to give them choice. By that, you mean choice to even install a grate — that would be within the law to begin with?

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Correct. Choice to choose the visibility requirements that best meet their needs.

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And then turning to Assistant Commissioner Hilton. You have given me the issues with outreach over the last 15 years since the original underlying law was passed, and I understand the long runway and the challenges there. How exactly would you want to see this legislation strengthened in some way in order to provide more consistent instructions as to how to conduct outreach for these new businesses? Do you feel that it is written as such now that it gives you sufficient opportunity to comply? How can we prevent this from happening again, essentially?

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Understanding, of course, that there is the runway that was provided for before. Thank you, Council Member. That is a loaded one — a lot of questions. But I just want to say that the Department of Buildings' mission itself is regulatory, right? We are typically engaging with folks who come to us for construction and alteration needs. They are filing something with us. This has been our focus a lot, but yes, we recognize the need.

I am just struck by the Chair's question earlier about where we could have done something even more proactive. As folks filed with us, we could have asked those questions at that time and gathered more information. So yes, I will take that back to our folks, and we will absolutely make some adjustments in the plan exam phase where folks will be able to answer certain questions about these pending items during the examination phase — even if it is not brought to light initially that they have a security grill, or if it is not made clear, we should be prompting those questions.

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This one is important to me because I actually owned a business with a security grate between 2019 and 2025, and I have been in the Council for some of those years, and I actually still did not know about the underlying law. So I just think we do not want small business owners to be in that situation again. Whatever way — if there are ways that you feel the legislation needs to be clearer about outreach requirements, or if there are new plans to do outreach to the businesses that would be subject to this, then I think the Council would like to hear it. But I thank you both for your time, and thank you, Chair, again for letting me ask these questions.

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Thank you for joining us. I do want to mention we have been joined by CM Brooks-Powers, and I will now turn it over to her for questions. Thank you.

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Madam Chair, and thank you for your testimony, Commissioner. Just two quick questions. First, many small businesses, particularly in Queens, struggle when major roadway, sewer and infrastructure projects disrupt access to the

(00:47:03)

store for months at a time. Can you provide examples of how the agency currently supports businesses impacted by construction, and where the budgets are being prioritized?

(00:47:16)

Council Member, there are a couple of interventions that we deploy. I think first and foremost, information is power. So we make sure that small business owners are aware of what is happening with the construction project and try to get that information to them through our partnerships with City agencies engaged in infrastructure improvements. We also bring back the feedback from small business owners to the City agencies about the impacts.

I think another intervention we deploy is that we provide access to resources for small business owners. The first that comes to mind is through our Small Business Solutions Centers, connecting them to services such as webinars on how to make their customer base aware of the impact. We also connect them through the Funds Finder to affordable loans and grants for whatever their business need may be, and we have staff at the Small Business Solutions Centers to help them get loan-ready. And just one point that I missed earlier — in our advocacy with City agencies,

(00:48:31)

one of the points that we hear consistently from small business owners is: if you are going to be disruptive, at least help me with signage so that people know that I am still here. That is something where our advocacy has been successful in the past as well. Thank you.

(00:48:48)

I like the signage piece. I definitely think it is important to create some semblance of a fund, especially if it is tied to a development or some level of construction, having the developers invest in a fund for things that come up and disrupt businesses — whether it is rodent mitigation, or being out of business for one day because something disrupted water service or something like that. We have seen those issues in Downtown Far Rockaway in particular over the course of some of the construction that has happened along the commercial corridor, and I welcome you to come visit the district. You are my fourth commissioner since being elected, and all of the commissioners in the past have come to the district, so we welcome you.

My last question for you is: one of the most common concerns I hear from small business owners is the length of time it takes to navigate inspections and approvals before opening their doors. Which agencies and inspections create the most significant delays today, and how much time could a coordinated inspection program realistically save for new businesses?

(00:50:03)

Thank you for that question, Council Member. What we find in our conversations with small business owners is that there is not just one agency or one type of inspection that comes up and gums up the works, so to speak. It is more a question of filling the information gap. Oftentimes, small business owners do not even know that they need to go to a particular agency for a particular item. That is precisely the gap that SBS tries to fill. We try to ensure that business owners are aware of the various City agencies they need to connect with in order to open quickly, and we help them line up the inspections by making sure their paperwork is in order and understanding the vision they are trying to put forth, so that we can issue-spot and identify the right agencies.

(00:50:57)

I said that was my last question, but this is my last last question. The redevelopment program — I am not sure if you are familiar — is a multibillion dollar infrastructure program that has been happening for about the last seven or eight years now, and there is a joint certification process. The reciprocal process is: if you want to get certified with the Port Authority, you can get certified with the State and the City. The City has probably the fastest process out of the three.

But I wanted to know: has there been any coordination with the Port Authority to look at a more efficient, streamlined process? Because I do still hear from some of the businesses about it being very time-consuming and overwhelming for them. So I just wanted to understand if there is anything that has been done — obviously you are new here — but if there is anyone in the agency that is focused on that, I would like to know.

(00:52:07)

We certainly have had some preliminary conversations. I want to connect with you to understand what the issues are a little bit.

(00:52:12)

I welcome that. Thank you. And thank you, Chair.

(00:52:16)

Thank you. I will now turn it over

(00:52:17)

to CM Long for questions. Thank you, Chair. I also wanted to thank the Commissioner for supporting my bill — thank you so much. I also want to mention my district also needs some love. If you have time, please come to my district as well. I would love that.

I have businesses — quite a few in Sunset Park — and a lot of businesses are actually down 30 to 40% because of the immigration issue and also the tariff issue. I actually have a business owner who just texted me with a question. So for Int 0910, about the security gate issue: if they are in the process of opening a business right now and plan to open hopefully at the end of this month, do they still need to comply with the law? Thank you for that question. They are actually in the process and they do not know what to do right now.

(00:53:26)

Correct. So I understand. The Department of Buildings has anticipated that question. As you know, the law requiring the 70% visibility, as it currently stands, does not take effect until July 1, 2026. So with this legislation in place, the Department of Buildings has effectively decided to withhold enforcement — to stand down on any enforcement — until we see what this legislation looks like when passed. The enforcement piece would reflect what the resulting legislation looks like, so we are not enforcing.

(00:54:16)

We do not plan on enforcing the current law. Can we say there is a grace period? There is a grace period until we know what this new law

(00:54:29)

says. Okay. And the effective date of this law — what we do not want to do is enforce a law that becomes nullified by this piece of legislation.

(00:54:42)

Okay, great. Thank you so much. That is very helpful. Thank you.

(00:54:48)

You are welcome.

(00:54:48)

Thank you, Council Member. I will now turn it over to CM Maloney. Thank you so

(00:54:53)

much, Chair. I want to thank you, Commissioner Minaya, for your testimony and also for visiting my district early on in your term. My question on Int 0910: do you have information on compliance by borough, or on the types of businesses that are still noncompliant with the 70% visibility requirement? I think that is a question for you.

(00:55:23)

Thank you. I thought I was off scot-free, but I am coming back. Good.

(00:55:33)

The answer to that is I do not. We do not have information yet because the Department of Buildings has not yet begun enforcement, except during the plan examination for those businesses that went through their plan examination from 2011 to 2025, as the Chair brought up. We have no knowledge, really, of any noncompliant businesses because we have held off on enforcement until the effective date of the law.

(00:56:08)

Do you have a loose set of assumptions on where businesses have already upgraded? I represent Manhattan, and I think the majority of the businesses in my district have adopted the legislation. We are just trying to get a

(00:56:25)

back-of-the-napkin sense of which businesses are going to be the most impacted by this requirement.

(00:56:32)

Right. I stand by my earlier answer: the Department of Buildings does not have any information. We did not gather any surveys or collect any data on that.

(00:56:42)

Okay, thank you. I want to switch gears to Int 0799-2026 on cutting red tape specifically for opening new businesses and reducing time to open new businesses. I applaud the work of Executive Order 11, which seems to be more focused on fines, fees and regulations that are impacting existing businesses. Understanding that the results are going to be coming out soon, do we have a sense of how many of the recommendations are focused on accelerating the opening of

(00:57:19)

new businesses, or is it really focused on that fines and fees piece? I think there is a mix of proposals addressing both reduction of fines and fees and some outdated requirements as well that are impediments to opening.

(00:57:41)

And with expanding the SBS team — it is great to see that you have helped businesses save over $6 million. Does that also include staffing increases and budget increases? What can we expect from expanding that program? As part of the preliminary budget, there is an expansion of SBS of 30 staff lines, nearly $4 million in the preliminary plan. We want to serve more businesses and provide more in-depth services as well. That is great to hear. And then how will the Mom and Pops Czar play into these recommendations, and what

(00:58:24)

specifically is the role of the Mom and Pops Czar? I am in close consultation with the Mom and Pops Czar, Delia. We both report directly to the Deputy Mayor for Economic Justice, and we are both laser-focused on making it easier to open a business in New York and to operate once you are open. So the Mom and Pops Czar is reviewing recommendations and proposing some of her own that are informed by the interactions she is having with small business owners as well.

(00:58:56)

Great. I am looking forward to seeing the recommendations, and echoing the Council Member's point around the baseline metrics of where we are and what improvement looks like, as well as common issues that businesses have and the completion rate from people who start this process and actually get to the finish line. Thank you very much.

(00:59:21)

Thank you, Council Member.

(00:59:25)

I am going to give you a break for a minute. Commissioner Minaya, a couple of questions around CM Salaam's bill. If a business begins struggling and believes it is connected to road construction, are there any current resources that the City can connect them with? The resources we have available to small businesses are the loans and grant programs that we connect them to through the Funds Finder. Those are generally applicable to address any business need, including the one you just mentioned.

I am curious — a lot of businesses that I actually visited while in CM Encarnación's district along Second Avenue subway have been experiencing challenges. The contractors did do the signage and everything, but it is so chaotic down there that as a consumer you just assume that entire stretch is closed. There is no way you would reasonably assume that those businesses are open, even with signage. So I am curious: have any of those businesses in particular along the Second Avenue subway route reached out for assistance?

(01:00:45)

We have certainly connected with those businesses along the Second Avenue corridor you just mentioned. I am unable to provide specifics, but

(01:00:54)

I know that we have done outreach in the area. I can speak to that.

(01:00:57)

Okay, I would definitely like to follow up. Honestly speaking, those businesses nine times out of ten are going to have a hard time surviving during that construction. I was going to say that in addition to the supports that we offer on the loan and grant fund, we also offer marketing support to make sure that businesses are able to communicate to their customers that they are still in business and make them aware of the situation.

Okay. We found an example — I am not sure if you are familiar with Route 80 in New Jersey. There was a sinkhole under construction, and the New Jersey Economic Development Authority created a grant program for small businesses and nonprofits that were affected by the construction. The program specifically targeted businesses with up to 50 employees that sustained a negative financial impact of a thousand dollars due to the sinkhole, and qualifying businesses could receive anywhere from a thousand to $15,000. Have you looked into that program or are you aware of it? Were any businesses provided with

(01:02:11)

assistance? I am not familiar with that program, no.

(01:02:16)

DOB, if a company — when a

(01:02:23)

company has a plan examination, what does that look like? Chair, the company itself does not come to us — meaning the business itself. Plan examinations are done between what we call a registered design professional, which is a registered architect or a professional engineer, who comes to us with a set of plans about the construction and what they need. A lot of this is now done online, and there is a back-and-forth online, but there is also an opportunity for them to come in by appointment.

So it is a matter of presenting a set of plans to a plan examiner, who reviews those plans to make sure they meet code and zoning requirements, and then returns them. If the plans are not fully up to code or do not meet whatever requirements are needed, the examiner issues objections. The design professional then satisfies or answers the objections and sends the plans back, and it goes back and forth — hopefully not too many times — before the plans are approved.

(01:03:53)

So with those objections — not exemptions. I guess what I am getting at is: does that examiner go over with the architect and or business owner anything beyond the scope of that particular plan, such as a security grill? That is my point. Before they

(01:04:14)

The plan examiner is looking at what they are presenting, what they present on the plans. So, for example, if the plans do not show a security grill, these are actually drawings. And so if that is not a part of saying this is a security grill that is going to be installed or replaced, the plan examiner does not see that. And my point to you before, where you were saying that is an opportunity there to ask a question, that is what we will take back to see. But I think it is important, and this is going to go back to CM Maloney's question that I missed. We have an electronic system that captures this whole plan examination back and forth, and it does not, as currently, and this is where we could improve, capture a permit type for security grilles. It is a construction alteration, whether it involves a certificate of occupancy or not. It is just a construction, a set of plans showing what they intend to do, where they changed the occupancy. They are not so beat, but our electronic system currently does not capture a security grille or the type of construction. So maybe if we did have that, maybe that would be a trigger that the examiner would have to check: does this involve a security grill? And then that would trigger the plan examination to focus on the

(01:05:52)

compliance of the security grill. So with this new Bill, I should say it is a great opportunity because this Bill, if passed, would be effective only for new installations or changes and replacements. And so this is the opportunity for us to capture some of that and improve our plans and the process.

(01:06:23)

Aside from the grills, if a new business is opening, is there a checklist that is provided to the business owner? So even if something particular to that plan is not in there, to avoid the back and forth... I would say so. Aside from security grilles, there could be anything. If you have a plan examiner in someone's business, are they going over with them everything that is needed to open their business?

(01:06:43)

If the examiner is in someone's business, are they going over with them everything that is needed to open their business?

(01:06:55)

That is precisely what we do.

(01:06:59)

Yes, yes. OK. Does anyone have any idea — can anyone answer this — how many companies in New York City install security grilles?

(01:07:12)

So, Chair, as I said before, the Department of Buildings' electronic system does not capture the security grille type of construction. It is a basic renovation type of thing, which means we have no way of capturing the information about security grilles — how many are out there, how many are new, how many are replacements. We just do not have that information on security grilles.

(01:07:34)

But does anyone know how many businesses do that type of business? No, we do not have that information, Chair.

(01:07:41)

I am trying to understand whether those businesses were at the very least notified that this law was being passed. So if I am operating a security grill business and I am going out to replace a grill, am I aware this law exists so that I can let the business owner know at that time the requirements that are needed for the right grill to be installed?

(01:08:11)

I will just say that the matter is this: it is the building owner's responsibility to maintain their building in a code-compliant manner. It is on the owner to make sure that whatever their building is, it is maintained that way.

(01:08:38)

So your question regarding... I am sorry, I have lost my train of thought there a little bit. Your question is regarding... I am sorry, could you just repeat that?

(01:08:45)

So I own a security grill company and I install grills. Someone with a new business calls me. At the very least, if I am doing my work right, I should know — I am just assuming I should be aware — what type of grills are permitted.

(01:09:04)

If SBS or the City of New York knows that I have this type of business, would they alert those types of businesses that are out there doing this work: please install these types of grills? Because if I am a business owner, I do not know.

(01:09:22)

Yes, yes. That is a fair point, because just today we were alerted that certain businesses that install grills are putting notices on people's storefronts, alerting them to the fact that this law is coming. So they are aware. Prior to now, when they were called in to install these grills and installed noncompliant grills, that puts the business owner and owner of the building in jeopardy of getting a violation. We do not know for certain, but of course I know for a fact that these businesses are aware, because a lot of them have reached out to the Department of Buildings asking for clarification on the law. But that was not done prior to 2020.

(01:10:27)

I cannot say how much, but I know there were outreach efforts because in preparation for this, and before when we started ramping up our outreach, I did some searches, especially on the internet, and I found very, very old outreach flyers from security grill companies that were noticing owners of this very same thing that I just

(01:11:01)

mentioned. I am going to end with this: provided that local law Int 0910-2026 goes into effect, what is the plan moving forward? How will we let businesses know? I think, as outlined in the Bill and in close partnership with any other agency you mentioned... let me rephrase. How will we do it better this time, Chair?

(01:11:34)

I think I have acknowledged the fact that we could improve. With this new Bill, which will put less of a burden, we are going to do the same things that we have done and also look at ways in which we can improve the notification of these plans. Thankfully, this Bill, if passed, does not impose a retroactive requirement, so it is going forward. We are going to be focused on using the same social media outreach. We are going to be doing the same service notices and construction advisories, revising those and putting them out, and working with our partners at SBS to put that information out.

But in addition to that, I am going to go back to the development folks and see how we can improve our notices to our plan examiners to make sure that we actually make mention — regardless of whether the security grill issue comes up or not — that this is a new business. Have you asked: does this involve a security grill? Just ask the question. If it is not explicit in the plans, we can ask the question and make them aware of that. I cannot tell you how quickly we can do that, but we will aggressively pursue it. I will bring that back and check.

(01:13:03)

Thank you, Commissioner. In addition to outreach, I would love to partner with you and other Council members to make sure we are in the community getting the word out. I think one of the impressive pieces of this administration is the ability on social media to generate attention. We should certainly leverage that and make sure people are aware. I will say this: a lot of businesses, particularly in my Council district, are not online, they are not on social media, and English is not their first language. So we do have to get creative and even, I would say, old school — door to door, direct outreach to a lot of these businesses. I think it really starts, not for nothing, when these businesses are opening and have to pass inspections. I think that is a perfect opportunity to say this is what is coming down the pike, this is what you need to

(01:13:58)

be successful. Sure. I just want to say we do want to work with you. You just brought up a good point, because with this new Bill we are going to have to revise our construction advisory. That is a printed piece of paper that we can work with your team to distribute to those businesses, especially those affected. But I think the most important information that needs to get out to businesses is that they need to pull a permit to replace or install these new grills. So if they know that and do not go the route of putting this in without a permit, then at least you have a better chance of being advised of the requirements of the grill going forward, if the Bill is passed, which is the going-forward approach.

So we will work with you or whoever it takes to get a printed advisory construction notice out stating exactly what needs to be done. A permit needs to be pulled for these, and people need to be aware of it, because there are also additional consequences for doing work without a permit, in addition to the visibility issue. And will they apply for this permit? Yes. And how long — any idea how

(01:15:28)

long it is going to take once they apply? A permit — plans have to be submitted. I can tell you now, if it is just a security grill on a frontage, it should be easy, right? A quick online submission with the applicant and approval could be within a week. And then permitting, depending on how quickly... but if it is an elaborate type of renovation or there are occupancy changes involved, it could extend. It all depends, honestly, on the competence of the design professional and the knowledge of the owner who is hiring them to make sure that they are getting the right information to us.

(01:16:11)

From 2020 to 2025, and then how many have been applied for this year? So we do not know specifically from 2020. We are not prepared to answer that but we can get back to you.

(01:16:27)

How many have been applied for this year? Lauren Navarro, Department of Buildings — we do not have those numbers for you right now, but if you could follow up with us, we will get those numbers to you.

(01:16:41)

Okay, that would be great. Are you talking

(01:16:43)

about permits in general?

(01:16:45)

No, because the law is supposed to go into effect in less than a month. So I am curious how many businesses actually applied to get that grill replaced. As for security grilles, we do not actually have a permit specifically for security grilles. Depending on the type of permit or type of security grill, excuse me...

(01:17:04)

Some security grilles will not actually need a permit to be installed if you are replacing in kind. That is a situation where it would never come to us. So we will never

(01:17:10)

know about those security grilles. So specifically for security grilles, we do not have those

(01:17:17)

numbers. Okay, if you want numbers of that kind we can get them for you if you ask.

(01:17:21)

So what were you talking about a permit for just now? I thought the permit was for grills.

(01:17:25)

For grills if they are new. Okay. On existing ones, in some situations we do not need

(01:17:33)

permits. I did not get four minutes. I was about to say — you need to swear them in. Apparently the manager had to... Mike, pull up a chair. Would you be quick? Be brief. You affirm to tell the truth, the whole truth and nothing but the truth before this Committee and to respond honestly to Council member questions? Thank you. You may begin. We are ready.

(01:17:58)

So to clarify for me: we just said there is a permit needed for replacing a gate. Would there be a permit needed? It is not always a

(01:18:08)

permit that is needed. But if it is a new security grill, most likely a permit will be applied for as part of the overall building construction. Correct?

(01:18:17)

So if I have a grill on my place now, I do not have to apply for a permit to get a new grill, according to this Bill?

(01:18:29)

Okay, right. But they have required a permit before they installed it. We do not know that for certain.

(01:18:34)

Let us go back to the middle of 2009. Okay, did you need to apply for a permit to install a new grill? You always

(01:18:41)

had to get a permit. And so it is a construction permit — it is not a security grill permit, it is a construction

(01:18:46)

permit. How many construction permits specifically for... I understand what you are saying. Sure. Okay, I am just making sure.

(01:18:55)

We do not clarify on the permits whether it is for a construction grill or not. The permits are just for alterations that affect occupancy.

(01:19:03)

So there is no little check box for that?

(01:19:06)

Okay. If you can get back to us, that would be great. Sure.

(01:19:10)

I do not believe we collect those numbers, but we can double check.

(01:19:15)

Well, one of my Council members mentioned that her district has done well to comply. So I am curious, from borough to borough, who was aware and who was actually able to do it. That is the kind of thing that our colleagues might be able to suss out a little bit better, because we do not have direct contact with the businesses.

(01:19:33)

All right. Well, that is all the questions I have for this panel. Thank you very much. Thank you. Thank you.