Mamdani signs executive order to cut costs and red tape for NYC small businesses
Credit: Ed Reed/Mayoral Photography Office on Flickr
An executive order signed by Mayor Zohran Mamdani this week gives seven city agencies 45 days to inventory the thousands of fees and penalties facing small businesses and identify ways to reduce and streamline them. Signed on Wednesday, Executive Order 11 directs newly appointed Deputy Mayor for Economic Justice Julie Su and city agencies to compile a comprehensive inventory of more than 6,000 rules, regulations, fees, and penalties affecting small businesses. The effort aims to lower costs and make it easier for small businesses to operate across the five boroughs.
The action responds to long-standing complaints from small business owners about the complex web of fees and permits required to open a new venture. Owners have also said that once they finally open, they are often hit with a barrage of fines for seemingly minor violations, most commonly for failing to post a refund policy sign or display prices on shelves, according to the New York Times.
Under the order, the agencies—including the city’s Departments of Health and Sanitation and the FDNY, according to the New York Post—have 90 days to identify which fees are unnecessary and can be eliminated through rulemaking. Within 180 days, officials must flag additional fees and penalties that would require legislative action to reduce.
Within one year, the agencies must also produce a report assessing the feasibility of an amnesty and relief program for business owners.
The order builds on a central tenet of Mamdani’s campaign platform, which emphasizes protections for small businesses as part of his broader push to make the city more affordable. It also continues previous efforts by former Mayor Eric Adams, who in May reduced some fines and updated inspection procedures for these businesses, according to amNY.
Previous mayors, including Michael Bloomberg and Bill de Blasio, also enacted measures to make it easier for small businesses to comply with city rules. According to the Times, Bloomberg introduced 14 measures to streamline the process, while de Blasio eliminated fines for some first-time violations. Adams eliminated 30 violations and reduced fines for 49 others.
“You cannot tell the story of New York without our small businesses,” Mamdani said. “Yet, our city has long made it too hard for these same businesses to open their doors, and to keep them open. With today’s executive order, we will bring that chapter to an end, instead delivering relief to businesses from the fines and fees that drive up their costs.”
In December, the Five Boroughs Job Campaign (FBJC)—which includes the city’s five chambers of commerce, the Real Estate Board of New York, and other industry groups—urged the then mayor-elect to freeze “non-safety-related fines and fees” during his first months in office and quickly reduce penalties facing small businesses, as amNY reported.
Tom Grech, president of the Queens Chamber of Commerce and co-chair of the FBJC, called Mamdani’s order a “great first step,” but urged the administration to reconsider what he described as a “fine first, ask questions later” enforcement culture. He also expressed hope that the city will move away from relying on fines as a revenue source in favor of a more educational, corrective approach.
Grech added that he hopes Mamdani will respond to the FBJC’s request for a small business director, or “czar,” who reports directly to the mayor, giving small business owners a stronger voice within City Hall.
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