One of the key challenges facing our city's small business community is reliable access to the critical capital that entrepreneurs need to launch, grow and sustain their businesses. In recent years, the lending institutions that small businesses have historically relied on have declined dramatically, leaving fewer funding options and posing an existential risk to the foundation of our local economy. In PROPEL's latest "Good Policy" explainer, we cover one potential solution years in the making to help small businesses thrive. 

A public bank could fill in the crucial gaps created by a financial market increasingly driven by venture capital gambles. If you value the commercial corridors that make San Francisco's diverse neighborhoods vibrant and unique, if you value cultivating our entrepreneurial spirit or growing local jobs for our neighbors, then this explainer is for you.

In this “Good Policy” video, we take a look at one symptom of the affordability crisis – commercial vacancies — and dive into an effective solution that helps level the playing field for small businesses by making affordability (not speculation) central to their storefront success. The Commercial Vacancy Tax (CVT) has already helped stabilize local business districts in San Francisco and beyond. It was designed with a simple idea: incentivize landlords to keep storefronts active through affordable lease terms.

SF small business owner, Christin Evans, gives a straightforward explanation on how the tax works, the benefits it has created for small business owners, and why it earned broad constituent support across political lines. We also take a clear look at the challenges that remain, including lingering structural issues in the commercial rental market and funding barriers to local entrepreneurs. These are the policy areas that still need attention if we want thriving, resilient neighborhood business corridors.