NEW YORK—Council members and civilians gathered at city hall to push for an emergency vote on the Small Business Survival Act Tuesday, with one councilman promising to boycott the upcoming city council meeting if it doesn’t get voted on.
Proposed by Councilman Robert Jackson, the Act seeks to prevent extortion of small businesses by reforming the current commercial lease renewal process, which has forced 158,000 small businesses in New York City to close, according to Stephen Null of the Coalition for Fair Business Rents.
“We have to push the mayor and Speaker Quinn to act because obviously they’re not going to do it unless we pressure them … If we don’t get a promise right now by the speaker to move this legislation ahead, I’m going to ask each and every council member to boycott the August city council meeting,” said Council Member Tony Avella, who is running for mayor.
“New immigrants established small businesses and find out that they can’t keep it open because of escalating rents. This is a disgrace, it is a disgrace that we allow the real estate industry and the landlords in this city to go unregulated,” said Avella, who added that hardworking immigrants are having the American dream—“to own your own home, to own your own business”—taken away from them.
Under the existing system, some landlords require small businesses to pay an under-the-table fee of $30,000 to $40,000 in order to renew their lease, according to Yudelka Tapia, candidate for city council.
According to Null, 53,000 warrants for eviction were issued during the Bloomberg administration. He added that more than 42 percent of small businesses in New York City are owned by immigrants and minorities.
According to a survey of 937 Latino small business owners, conducted by the U.S.A. Latin Chamber of Commerce, 91 percent believed that New York City was the “best city in America” to fulfill the American dream. However, 84 percent answered “no” when asked whether they still believed that New York City is the best city in the U.S. for an immigrant to “invest their savings and hard work in starting a small business.” Of the group surveyed, only 18 percent would recommend to their “family, friends, or people from [their] home country to start a business in America.”
“Small businesses are getting killed out there,” said Council Member David Yassky, chairman of the Small Businesses Committee. He added that, “I think we need tax incentives, we need financing, we need some fair treatment from the landlords of this city to make sure the mom and pops can stay in business and serve their communities.”
According to the same survey, 53 percent of Hispanic small business owners believe their business is at risk of being closed. A majority cited high rents, operating costs, and taxes and fees as the cause for concern.
Small businesses bring more jobs to the city than large corporations. However, in New York City, a lease for a storefront is as short as one year long, in contrast to a minimum of nine years in France, according to Null. Many small businesses cannot survive because of the high rent, “pass-along” costs, and the shortage of time to expand and make a profit. Banks are unwilling to lend to small businesses with such a short lease.
According to a survey conducted by the Small Businesses Congress Inc., few small business owners know that the NYC Department of Small Business Services offer programs to start businesses but not help sustain them.
The current leasing system is an “inherently unequal playing field,” said Joe McNearny, Legislative and Budget director for Council Member Robert Jackson.
The goal of the program is to give small businesses the right to a lease extension without having to pay exorbitant fees, said McNearny.
The Small Businesses Survival Act stipulates that the landlord and small business should negotiate to come to a fair agreement on rent and lease. If they cannot reach an agreement, they can seek mediation from an impartial party, such as the American Arbitration Association. The program is a safeguard against abuse of small business owners by landlords, and will use no taxpayer dollars since it isn’t a government program.
Currently of the 50 members of the city council, 32 council members have signed on to the Small Business Survival Act.
Proposed by Councilman Robert Jackson, the Act seeks to prevent extortion of small businesses by reforming the current commercial lease renewal process, which has forced 158,000 small businesses in New York City to close, according to Stephen Null of the Coalition for Fair Business Rents.
“We have to push the mayor and Speaker Quinn to act because obviously they’re not going to do it unless we pressure them … If we don’t get a promise right now by the speaker to move this legislation ahead, I’m going to ask each and every council member to boycott the August city council meeting,” said Council Member Tony Avella, who is running for mayor.
“New immigrants established small businesses and find out that they can’t keep it open because of escalating rents. This is a disgrace, it is a disgrace that we allow the real estate industry and the landlords in this city to go unregulated,” said Avella, who added that hardworking immigrants are having the American dream—“to own your own home, to own your own business”—taken away from them.
Under the existing system, some landlords require small businesses to pay an under-the-table fee of $30,000 to $40,000 in order to renew their lease, according to Yudelka Tapia, candidate for city council.
According to Null, 53,000 warrants for eviction were issued during the Bloomberg administration. He added that more than 42 percent of small businesses in New York City are owned by immigrants and minorities.
According to a survey of 937 Latino small business owners, conducted by the U.S.A. Latin Chamber of Commerce, 91 percent believed that New York City was the “best city in America” to fulfill the American dream. However, 84 percent answered “no” when asked whether they still believed that New York City is the best city in the U.S. for an immigrant to “invest their savings and hard work in starting a small business.” Of the group surveyed, only 18 percent would recommend to their “family, friends, or people from [their] home country to start a business in America.”
“Small businesses are getting killed out there,” said Council Member David Yassky, chairman of the Small Businesses Committee. He added that, “I think we need tax incentives, we need financing, we need some fair treatment from the landlords of this city to make sure the mom and pops can stay in business and serve their communities.”
According to the same survey, 53 percent of Hispanic small business owners believe their business is at risk of being closed. A majority cited high rents, operating costs, and taxes and fees as the cause for concern.
Small businesses bring more jobs to the city than large corporations. However, in New York City, a lease for a storefront is as short as one year long, in contrast to a minimum of nine years in France, according to Null. Many small businesses cannot survive because of the high rent, “pass-along” costs, and the shortage of time to expand and make a profit. Banks are unwilling to lend to small businesses with such a short lease.
According to a survey conducted by the Small Businesses Congress Inc., few small business owners know that the NYC Department of Small Business Services offer programs to start businesses but not help sustain them.
The current leasing system is an “inherently unequal playing field,” said Joe McNearny, Legislative and Budget director for Council Member Robert Jackson.
The goal of the program is to give small businesses the right to a lease extension without having to pay exorbitant fees, said McNearny.
The Small Businesses Survival Act stipulates that the landlord and small business should negotiate to come to a fair agreement on rent and lease. If they cannot reach an agreement, they can seek mediation from an impartial party, such as the American Arbitration Association. The program is a safeguard against abuse of small business owners by landlords, and will use no taxpayer dollars since it isn’t a government program.
Currently of the 50 members of the city council, 32 council members have signed on to the Small Business Survival Act.
