Small BID

Written By BID Association

Policy Paper: Big Support for Small Business Improvement Districts

Prepared by the Small BID Committee
Alyssa Tucker and Chandler Forsythe, Co-Chairs
NYC BID Association | December 2025

Executive Summary

Small BIDs are defined by the Department of Small Business Services (SBS) as those with an annual assessment of less than $600,000 or less than $1 million in a low- to moderate-income neighborhood. Together, they comprise over half of New York City’s BIDs. These BIDs generally operate with two or fewer staff, resulting in a significant lack of resources that prevents them from delivering services comparable to larger districts. To ensure equitable public space management across all five boroughs, the City must secure more resources for Small BIDs and lessen the current burdensome administrative requirements that draw limited staff away from vital work.

1. Overly Burdensome Grant + Administrative Processes

The Problem:

While grants like the Small BID Grant and Avenue NYC Grants are essential, their application processes are often complicated, have unclear guidelines, impose challenging subcontractor caps, and use a lengthy reimbursement process. Furthermore, Small BIDs are subject to costly and time-consuming independent financial audits. This excessive administration takes away from the important, on-the-ground work that Small BIDs perform.

The Solution:

  • Streamline Grant Applications: Simplify the application process for grants to reduce repetitive paperwork, lessen grant paperwork requirements, and explore ways to open eligibility up for grants so more BIDs may have the option to apply. It must be recognized that Small BIDs are trusted partners with limited staffing that are burdened by a tremendous amount of administration tasks that take away from other impactful and meaningful work. 

  • Lessen Paperwork Requirements for Subcontractors: Lower the amount of paperwork, and not require subcontractors to be registered in PassPort. If subcontractors have been registered and approved previously, remove the registration requirement going forward.

  • Adjust Subcontractor Caps: Via legislation, increase or remove the subcontractor cap (usually 30% or 50%) to recognize the necessity of outsourcing services due to limited in-house staffing.

  • Streamline Grant Applications: Lessen grant paperwork requirements. There is a lot of repetitive paperwork that is time consuming. BIDs are a trusted partner with limited staffing, and Small BIDs are burdened by a tremendous amount of administration that takes away from other important work. 

  • Simplify Audit Requirements: Via legislation and/or policy, allow SBS to accept a financial review of a Small BID instead of a full financial audit.

  • Push Back Audit Deadline: Move the audit submission deadline from December 1st back to December 31st to provide BIDs and their Boards more time to prepare and approve documentation.

2. Dedicated SBS Support and Advocacy

The Problem:

Although the Department of Small Business Services (SBS) is a crucial partner, Small BIDs need more active assistance in navigating City agencies and accessing helpful resources. Additionally, existing annual reporting tools, such as the BID Trends Report, are time-consuming for Small BIDs and their usefulness for comparison is questionable.

The Solution:

  • Dedicated City Agency Advocates: Allocate dedicated SBS staff to serve as City Agency Advocates who can help BIDs connect to the right City contacts, follow up on pending requests, and connect them with New York City resources.

  • Improve BID Box: Add a City Agency Directory (including borough-specific and trouble-area contacts) and a skill-share spreadsheet to the BID Box online toolbox.

  • Reform the Trends Report: Shorten the BID Trends Report, make more data questions optional, and provide more room for explanations to better reflect the unique needs of each BID.

  • Identify New Revenue: Help identify and share ideas for additional sources of revenue, including hosting a grant workshop to access private and state funding.

  • BID Boards: Representatives from Small Business Services, Borough President Offices, Councilmembers, and the Comptroller sit on each BIDs Board of Directors; there needs to be further clarification on these roles and their responsibilities.

3. Liability and Unfunded Mandates

The Problem:

Unfunded mandates, such as the initial trash containerization rule, pose an existential threat to Small BIDs whose fixed assessments cannot sustain costly new additions. Furthermore, insurance requirements and liability prevent Small BIDs from maintaining or activating plazas, parks, and street furniture due to high costs and liability risks. 

The Solution:

  • Financial Protection from Mandates: City Hall and SBS must advocate for Small BIDs and consider their limited resources before imposing new, unfunded mandates.

  • Insurance and Liability Review: As trusted partners, the City should explore indemnifying BIDs from certain liabilities to allow them to take on public realm responsibilities.

  • Trusted Partner Status: Operationalize the "trusted partner" status to allow Small BIDs to be fast-tracked through many City processes.

Conclusion

The Small BIDs represent the majority of districts and are critical to the vibrancy of their respective neighborhoods. Ensuring their success requires more than just good intentions; it demands concrete policy changes from City Hall and SBS to provide equitable funding, simplify administration, and protect these limited-resource organizations from excessive liability and unfunded mandates.

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