Council Member Oswald Feliz, representing the 15th district, has introduced a plan to ease the financial burden on small businesses. This initiative responds to local business owners' frustrations with fines ranging from $100 to $2,000, which can be devastating for those fighting to stay afloat.
His proposal tasked the Department of Small Business Services (SBS) with supporting business owners by providing tools to help them understand the city’s regulations and rules rather than imposing punitive costs.
The critical component of the proposed legislation centers on regulatory compliance education and the education of business owners to understand the CSA regulations before they are required to implement them. Instead of dishing out fines immediately, the SBS wants to educate business owners to understand the codes they must comply with before investing time and resources into growth.
Navigating the complicated regulations can be challenging for new business owners. Educational support that provides a supportive relationship between the city and its small business community can bridge this gap.
Feliz pointed out that so many small businesses have their heads in the sand and are blindsided by regulations they had no idea would exist. If the city focused on education, it wouldn’t just relieve the fines; it would give small businesses more money to bolster their roots in the community.
Part of the proposal is to create a system to track and map fines to neighborhoods and among business types. It would collect and analyze data on fines issued to small businesses to see how much data could help develop new SBS services or discover what other amenities would suit these cities.
Simply put, this data-driven approach would illuminate how enforcement is especially stringent in these areas or industries and help city officials determine the origin of the problems and when they exist.
The transparency is a good thing, said the Bronx Chamber of Commerce president, Lisa Sorin, as it would expose any possible inequities in how the fine is distributed. “If we can map and track where fines are concentrated, we can make fairer decisions,” Sorin said. “Some businesses feel targeted more than others, but without data, that perception remains unverified.” Nuanced data reporting annually could inform city policy and develop more equitable and targeted compliance.
For years, some small business owners in some neighborhoods have believed they carry a heavier enforcement burden than others—a perception that has rarely been challenged. Fines tracked geographically would also confirm that particular neighborhoods receive higher rates of penalties. If differences are discovered, the city can use this data to balance small businesses on both sides of the fence.
Business owners and advocates say the system puts too much pressure on lower-income areas, where many businesses operate on narrower profit margins. Inequitable enforcement not only costs businesses money, but it also erodes trust between communities and city agencies, said Sorin.
This trust could be restored through a transparent, data-backed approach, enabling the city to deliver fairly supported neighborhoods.
Indeed, this proposal comes at a critical moment. Many small business owners don't have the resources to handle such hefty penalties. While there are accessible financing options, such as car collateral loans, to keep operations running smoothly, some can’t secure loans, especially in challenging economic times.
Also, high operating costs, inflation, and the pandemic challenges have left small businesses in Brooklyn and all over New York City in an even more difficult position. Of those in the small business category surveyed by the Federal Reserve, 60% in New York City said they were experiencing difficulties controlling expenses, and many reported fines as strains. This one fine could be the difference between those businesses staying afloat or their doors needing to be shut.
This could help small businesses via a supportive, education-based approach, with a lifeline to concentrate on growth and long-term sustainability. Feliz said he believes businesses are more likely to feel informed and supported, rather than penalized, and to help thrive and contribute to the local economy. The new proposal aims to do one thing: Allow for making the compliance onerous without unnecessarily ruinous for business.
What Lies Ahead?
If approved, the proposal may become law as early as next year. Local business owners, community leaders, and policymakers who have drafted preliminary versions of the anticipated legislation have expressed support for a degree of progressive change to Brooklyn’s business landscape.
Sorin and other proponents of the measure hope it will set a precedent for a better relationship between small businesses and city agencies, opening the door for entrepreneurs to thrive and contribute to their community. This could be a shift away from punitive fines where education and transparency replace support for a future where people are supported, educated, and transparent for Brooklyn small businesses and sustainable growth across the entire borough.
