small business
City Hall as a partner, not an obstacle
The problem
Los Angeles is opening half as many new businesses as it did a decade ago, and new business formation is at a 20-year low. The pandemic is no longer an excuse. Opening a business in Los Angeles means navigating a maze of agencies that don't talk to each other, each with their own timeline, their own requirements, and no obligation to move quickly. A new business can wait months just for LADWP to turn the power on. Inspectors contradict each other. Nobody tells you when anything will happen. That uncertainty makes entrepreneurs entirely dependent on the goodwill of their landlord while they wait, burning through savings with no end date in sight. The focus should be on fixing this bureaucracy, not adding new layers of process, cost, and waiting periods to things like outdoor dining that have worked well for over five years.
Our plan
A shot clock for permitting: just as we have committed to a shot clock for housing, we will apply the same standard to commercial projects: all departments involved would be required to provide responses to businesses by a firm deadline or all permitting fees are refunded.
Create a single inspector model: one citywide person coordinates across all agencies from application through opening, to reduce contradictory instructions and uncertainty about where an application stands.
Make outdoor dining free and simple. San Francisco eliminated permits and fees for sidewalk dining last year. Restaurants simply register, follow a published rulebook, and pay nothing. We will push to do the same for LA's sidewalk dining. For on-street dining and private property, we will consolidate approvals into a single application across agencies and waive transition fees for restaurants that operated safely under the temporary program.
Provide pre-approved construction plans for common restaurant kitchen layouts and offer self-certification for straightforward projects. Instead of months of custom plan review for a standard build-out, restaurants can pull a city-approved design off the shelf and get to work. Restaurants will also be able to use licensed engineers and architects to self-certify that projects meet city standards, rather than having to hire expensive expeditors and deal with months of delays.
Provide dedicated technical assistance for street vendors and home kitchen operators with in-language outreach to the communities where these businesses are most concentrated.
Direct LADWP to act as an economic development partner and provide clear processes and guaranteed power connection timelines. LADWP is often cited as a barrier for businesses, with confusing processes, slow response times, and unexpected changes in project requirements that can all add significant cost. We will change that and bring the speed and accountability new businesses deserve.
Bringing commercial corridors back to life
The problem
Los Angeles has beautiful neighborhoods, but too many commercial streets that feel like nobody is tending to them. There’s little incentive for landlords to fill empty storefronts. The city isn't taking care of the basics. Businesses need support with addressing homelessness, lighting, and trash; parking is impossible; and new development too often ignores the character of the place it lands in. A thriving street requires a city that actively invests in the conditions that make people want to be there, and in the small details that make businesses thrive once they're open.
Our plan
Support flexible parking solutions for small businesses. As major boulevards add denser housing, transit, and bus and bike lanes, small businesses face reductions in customer parking access that impact their bottom line. We will actively work with banks and offices to repurpose parking lots that sit empty after business hours for public use, and launch free shuttles in the busiest areas to connect more people with neighborhood businesses.
Appoint a dedicated Nightlife Czar to coordinate nightlife across city agencies and create designated entertainment zones on key commercial corridors where licensed vendors can operate later, open-container rules apply, and car traffic could be reduced during peak hours or weekends. Special events like outdoor dance parties, night markets, and street festivals currently face a 40-day+ permit process. We will streamline the process, provide low flat fees for community-organized events, and create pre-approved permit pathways.
Expand rapid-response forhomeless outreach, streetlight repair, sanitation, and basic maintenance on commercial streets. Businesses in some neighborhoods often have access to enhanced services because property owners pay for them through Business Improvement Districts (BIDs). Working-class corridors too often go without. We will close the gap by setting a citywide baseline standard for city services and we will help corridors that want to form BIDs do so with free technical assistance.
Work to establish neighborhood-level guidelines in partnership with architects and neighborhoods, so new buildings contribute to the character of the block rather than ignoring it.
Fill vacant storefronts with pop-up businesses on key commercial hubs, modeled on San Francisco's "Vacant to Vibrant" program. Landlords provide the space, the city handles permitting and seed funding, and successful pop-ups convert into permanent tenants. More than half of San Francisco's pop-ups have signed long-term leases since the program launched in 2023.
Pilot incentives to fill empty storefronts. Other cities have used active engagement with commercial landlords and incentive programs to bring new businesses into long-vacant spaces. We will pilot tenant improvement grants to help cover buildout costs, rent subsidies for new tenants, and expedited permitting.
Explore a commercial vacancy tax. Empty storefronts on neighborhood corridors are often the result of landlords betting on a future tenant willing to pay much higher rent. We will explore a commercial vacancy tax, with clear exemptions for owners actively renovating, marketing the space at fair rates, or facing genuine hardship. Revenue will fund the pop-up program and small business loan fund. Vacancy taxes have had mixed results across cities, and require careful design and planning to implement effectively: we will do the work.
Protecting small businesses from being squeezed out
The problem
Small businesses can be quickly overrun by a web of bureaucratic costs that are completely removed from their day-to-day operations. A single ADA lawsuit, often filed by a serial plaintiff, can set them back months. Insurance premiums are among the highest in the country. The small business tax exemption hasn't been raised in twenty years. And when a landlord decides they want a higher-paying tenant, there is almost nothing protecting a mom-and-pop from being harassed out the door. Big companies can absorb these costs, but they represent an existential threat to our small business community.
Our plan
Protect small businesses from predatory ADA lawsuits. It’s important for stores and restaurants to be accessible to all customers, but a small handful of serial plaintiffs have been exploiting ADA lawsuits, leading to $10,000+ settlements for easily fixable issues. We’ll advocate in Sacramento for the bipartisan “right to cure” reform, giving businesses the opportunity to resolve issues and ending the incentive for predatory lawsuits. For small businesses that need financial help to address issues, we’ll subsidize Certified Access Specialist inspections and create a low-interest loan fund for retrofits.
Raise the small business tax exemption and make renewal automatic. The $100,000 threshold was set in 2006 and hasn't moved since — San Francisco's is now $5 million. The City Council is studying an increase, and we will champion it. We will also push to tie the threshold to inflation so it keeps up over time, and make the exemption renew automatically so small businesses that qualify don't lose it over missed paperwork.
Protect commercial tenants from harassment and displacement. When a landlord wants to push out a long-time small business to bring in someone who'll pay more, almost nothing stops them. We will champion a Commercial Tenant Anti-Harassment Ordinance to push back against coercive rent hikes and bad-faith eviction tactics.
Push to ease the cost of putting someone on payroll. Insurance costs are one of the biggest barriers small businesses cite when deciding whether to hire, and California has among the highest workers' compensation premiums in the country. We will advocate at the state level for reforms that reward employers with low claims histories and reduce the cost of putting someone on payroll, while ensuring workers remain protected.