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
NEW YORK, NY – 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.
“Small businesses are the heart of our neighborhoods, but too often they face unnecessary delays before they can open their doors,” said Majority Whip Kamillah Hanks. “This legislation will improve coordination among City agencies on inspections and plan reviews, helping eligible businesses open faster. I’m proud to support this common-sense reform that will reduce red tape, create local jobs, and strengthen our communities.”
“I’m proud to co-sponsor the Red Tape Relief Act. By cutting red tape and making City government work better, we can make it easier for small businesses to open, grow, and succeed,” said Deputy Whip Elsie Encarnación. “As a Council, we must continue finding new ways to reduce barriers for our small business owners and help them invest in the neighborhoods they call home. When our local businesses thrive, our neighborhoods become stronger, our commercial corridors become more vibrant, and every New Yorker benefits.”
“Every extra form, every unnecessary inspection, and every delay adds costs that many small business owners simply cannot afford,” said Deputy Leader Sandra Ung. “Speaker Menin’s proposal to establish a Regulatory Review Commission and Councilmember Zhuang’s Red Tape Relief Act are the kinds of reforms that can make a real difference for entrepreneurs who are investing their savings, taking risks, and creating jobs in neighborhoods across our city. I am proud to stand with them in support of these efforts, and I look forward to continuing our work to ensure that New York City remains the best place in the world to start, grow, and sustain a small business.”
“Small businesses are the economic engine of our communities, but too many entrepreneurs face unnecessary delays and bureaucratic hurdles when trying to open their doors,” said Deputy Leader Chris Banks. “Intro. 955-A takes a commonsense approach to improving coordination between City agencies, streamlining inspections, and making the process more efficient without sacrificing public safety. By reducing red tape, we can help businesses open faster, create jobs, and strengthen our neighborhoods. I am proud to support this legislation and thank Council Member Susan Zhuang for her leadership on this important effort.”
“Far too often, unnecessary delays in the City’s approval process keep small businesses from opening their doors and prevent New Yorkers from accessing the services they need,” said Council Member Lynn Schulman. “By improving coordination between agencies, this legislation will help restaurants, child care providers, and other small businesses open more efficiently without compromising the health and safety standards that protect our communities. Every New Yorker deserves a City government that works for them, not against them, and this bill is an important step toward making our neighborhoods healthier, more equitable, and more vibrant.”
“Every day a small business is stuck waiting on city bureaucracy is another day they’re paying rent without bringing in customers,” said Council Member Phil Wong. “This common sense legislation cuts unnecessary red tape, helps local entrepreneurs open faster, and sends a clear message that New York City should be making it easier, not harder, to do business.”
“Opening a restaurant in New York City means navigating an alphabet soup of government agencies, from DOH and DOB to FDNY and many more,” said Andrew Rigie, Executive Director of NYC Hospitality Alliance. “Too often, delays in permitting and inspections keep restaurants from opening, workers from getting hired, and neighborhoods from benefiting from new small businesses. This commonsense legislation will help coordinate and streamline the permitting process so restaurants can open faster and create jobs sooner. We applaud Speaker Menin, Council Member Zhuang, and their colleagues for advancing this important reform, and we urge Mayor Mamdani to sign it into law without delay.”
“Speaker Menin and the Council’s leadership on cutting red tape and reducing unnecessary burdens is exactly the kind of practical action small businesses need,” said Tom Grech, Co-Chair of the Five Borough Jobs Campaign and President and CEO of the Queens Chamber of Commerce. “These bills would improve coordination across agencies, streamline approvals, and create a thoughtful process for reviewing outdated regulations, fines, and fees. We thank Speaker Menin, Chair Thomas-Henry, Council Member Zhuang, and the Council for advancing common-sense reforms that will help neighborhood businesses open, grow, and create good-paying jobs in every borough.”
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