Ahead of “Small Business Saturday” and Holiday Shopping Season, Mayor Adams Expands Outreach and Education Effort to Support Small Businesses, Help Them Avoid Federal Fines and[...]

November 29, 2024

Businesses Could Face Civil Penalties of More Than $500 Daily for

Not Completing Corporate Transparency Act Filing Requirement

City Agencies Have Made Over 320,000 Contacts, Reached 39,000 Businesses, Representing a

Potential Savings of Approximately $19.5 Million Per Day for New York City Businesses

Outreach Efforts Come as Adams Administration Celebrates Milestones in Employment,

Entrepreneurship Before 'Small Business Saturday'

NEW YORK - New York City Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Dynishal Gross announced efforts to support small businesses in advance of "Small Business Saturday" and the holiday season by educating small businesses ahead of the filing deadline for the federal Corporate Transparency Act (CTA). The federal law requires U.S. corporations and LLCs to disclose ownership information to the U.S. Department of Treasury. Under the new federal guidelines, most businesses will need to file a Beneficial Ownership Information Report about the individuals who own or control them by December 31, 2024, and newly formed businesses must do the same within 90-days of being registered. Eligible businesses and entrepreneurs that fail to comply with the new federal guidelines may be subject to civil penalties of more than $500 for each day that they have not completed the filing requirement by the federal government. The outreach, set against the backdrop of the upcoming holiday shopping season in New York City, is another example of how the Adams administration remains committed to helping small businesses succeed, including through connecting small businesses to over $290 million in grants and loans and nearly $30 million in commercial revitalization for Business Improvement Districts.

"Since day one, our administration has prioritized cutting red tape for small businesses and helped them better navigate regulations at all levels of government, and, as a result, we've created more small businesses than at any time in our city's history," said Mayor Adams. "Educating small businesses about the Corporate Transparency Act is fundamental to making sure small businesses avoid unnecessary fines and continue to power New York City's recovery, unhampered. This outreach is a great way to provide substantial support to small businesses in advance of 'Small Business Saturday' and a busy holiday season, and has already helped us potentially save 39,000 businesses $19.5 million each day in federal fines."

"SBS is here to ensure that small businesses across the city can grow, thrive, and reach their full potential," said SBS Commissioner Gross. "We know that small business owners want to be compliant with the law. Our education and compliance specialists help entrepreneurs across New York City save time and money while avoiding fines, fees, and scams. Beneficial Ownership Information reporting is fast, free, and easy - and so are our informational webinars."

The city launched a multi-agency campaign - including SBS, New York City Department of Buildings, New York City Department of Consumer and Worker Protection, New York City Department of Finance, New York City Department of Veterans' Services, New York City Economic Development Corporation, New York City Mayor's Community Affairs Unit, New York City Mayor's Office of Contract Services, New York City Mayor's Office of Immigrant Affairs (MOIA), New York City Mayor's Public Engagement Unit (PEU), and the Taxi and Limousine Commission - to deliver resources to small business owners about this federal law and how to comply with its mandates ahead of the December 31, 2024 filing deadline.

Through this multi-agency outreach and education initiative, the city has reached at least 320,000 contacts through email and newsletters and is working with PEU to conduct additional business owner outreach via text message, and have already reached approximately 39,000 businesses. This outreach represents a total potential savings of at least $19.5 million per day in fines under CTA guidelines.

Last week, SBS and MOIA hosted a media roundtable to answer questions from community and ethnic media and provide multilingual CTA compliance resources to the public. The agencies also shared resources with over 600 community partners, 76 business improvement districts, and all chambers of commerce. SBS is raising awareness through social media and is canvassing neighborhoods across all five boroughs of the city, targeting small business owners and entrepreneurs. Additionally, SBS has hosted eight webinars in partnership with The Legal Aid Society and Patterson, Belknap, Webb, and Tyler LLP, which have drawn 1,450 unique attendees, with presentations available in 18 languages.

The city is also educating New Yorkers about how to protect themselves from bad actors preying on small business owners, especially in the city's immigrant communities. While compliance with the CTA is fast, free, and easy, several third-party actors have been advertising services charging upwards of $1,000 to file Beneficial Ownership Information forms. SBS will continue to host webinars through the end of 2024, including two in conjunction with the United States Department of Treasury. Those interested can register on Eventbrite.

The city's outreach and education efforts follow the Adams administration's commitment to putting money back into the pockets of New Yorkers. Recognizing the importance of small businesses to the health and vibrancy of the city's neighborhoods and commercial corridors, the administration has prioritized cutting red tape, improving public safety, fostering the public realm, and promoting economic development. As a result of the administration's efforts, New York City reached a record of 183,000 small businesses across the city - the most in its history - with one in five businesses operating in the city having started in the Adams administration.

Since the start of the Adams administration, SBS has helped businesses save millions of dollars in fines and fees through its "NYC Business Express Service Team" and has facilitated the disbursement of more than $290 million in financing through grants and loans. SBS has also overseen the direct investment of more than $35 million in grants to community-based development organizations, merchants' organizations, and Business Improvement Districts.

As "Small Business Saturday" approaches, the administration is asking all New Yorkers to shop small and shop local, and encourages everyone to take SBS's "Shop Your City Challenge." New Yorkers can support small businesses through committing to purchase from neighborhood shops listed on "Shop Your City."

"Our 220,000 diverse small businesses, half of which are immigrant-owned, make New York City tick," said New York State Assemblymember Jenifer Rajkumar. "They are there 24/7 offering what we need when we need it, and we are committed to making sure they have every spare dollar to operate. With 'Small Business Saturday' upon us, we are supercharging our small businesses by educating them on new federal ownership disclosure rules. We will save owners from fines that can exceed $500 per day, giving them more money to invest back into their businesses and create jobs. Together, we will do everything we can to uplift our small businesses and the communities they serve."

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