Mayor Adams launches effort to help small businesses avoid federal fines

New York City Mayor Eric Adams, alongside Small Business Services (SBS) Commissioner Dynishal Gross, launched an extensive outreach campaign to support small businesses ahead of the holiday shopping season, including “Small Business Saturday.” Their focus: ensuring local businesses comply with the new federal Corporate Transparency Act (CTA) to avoid costly fines.

The CTA, which requires U.S. corporations and LLCs to disclose ownership information to the U.S. Department of Treasury, mandates that most businesses file a Beneficial Ownership Information Report by December 31, 2024. Failure to comply could result in civil penalties of more than $500 per day. As the filing deadline looms, the city’s initiative aims to educate business owners and provide resources to help them avoid fines, enabling them to thrive during the busiest time of year.

“Since day one, our administration has prioritized cutting red tape for small businesses and helped them navigate regulations,” said Mayor Adams. “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 has launched a multi-agency campaign involving over 320,000 contacts through emails, newsletters, and outreach across all five boroughs. They have reached approximately 39,000 businesses so far, with the initiative potentially saving businesses millions in penalties. SBS Commissioner Gross emphasized the importance of this effort: “SBS is here to ensure that small businesses across the city can grow, thrive, and reach their full potential. Beneficial Ownership Information reporting is fast, free, and easy—and so are our informational webinars.”

In addition to the direct outreach, the city has hosted eight webinars, drawing 1,450 unique attendees, and collaborated with more than 600 community partners. These webinars have provided multilingual resources, offering guidance on CTA compliance and protecting small businesses from scams—particularly those targeting immigrant communities.

As the holiday season approaches, the city is urging New Yorkers to support local businesses, which are integral to the city’s economic and cultural fabric. “Our 220,000 diverse small businesses, half of which are immigrant-owned, make New York City tick,” said State Assemblymember Jenifer Rajkumar. “Together, we will do everything we can to uplift our small businesses and the communities they serve.”

The city’s proactive approach is not just about education but also about financial relief. The Adams administration has facilitated more than $290 million in grants and loans to small businesses, with the goal of keeping them financially healthy and competitive during the busy holiday season.

With Small Business Saturday around the corner, the city is calling on all New Yorkers to shop local and support the small businesses that help drive the city’s economy.