By Aaron Allen, The Seattle Medium
Seattle Mayor Bruce Harrell, joined by City Council President Sara Nelson and Office of Economic Development (OED) Director Markham McIntyre, recently announced a series of new and expanded investments in the mayor’s proposed 2026 budget aimed at supporting small businesses across the city.
The new package is designed to make it faster, easier, and more affordable to start, grow, and sustain a business in Seattle. Key elements include streamlined permitting processes, a proposed rewrite of the city’s Business & Occupation (B&O) tax structure, and a $5 million expansion of the Back to Business program over two years.
“Seattle’s small businesses are the heart of our neighborhoods and the backbone of our economy,” said Harrell. “By cutting red tape, lowering costs for small businesses, and expanding access to capital, we’re helping entrepreneurs open, grow, and keep our communities vibrant.”
The mayor’s proposal includes exempting 90 percent of small and medium-sized businesses from paying the B&O tax, which has long been viewed as a barrier to entrepreneurship. Additionally, legislation will offer support for businesses occupying long-vacant commercial spaces by reducing permitting timelines and associated costs.
Central to the reforms is the Permitting Accountability and Customer Trust (PACT) Executive Order, which is expected to simplify and clarify the city’s permitting process. The updated system includes a multilingual online guide and an AI-powered tool to help reduce application errors and shorten processing times.
The proposal also increases financial assistance for businesses impacted by Sound Transit 3 (ST3) construction. Under House Bill 1733, relocation support will rise from $50,000 to $200,000.
“Small businesses are at a tipping point for survival in Seattle for multiple reasons,” said McIntyre. “Our small businesses define our city’s character—they shape our neighborhoods, power our economy, and reflect and enhance our culture. The city needs to act to ensure small businesses survive and thrive.”
“We listened to what small businesses need right now and we have delivered results,” McIntyre continued. “There’s more to do, but this package demonstrates that we are listening and we are acting.”
The $5 million allocated to expand the Back to Business program is intended to offer direct support and resources tailored to local businesses and entrepreneurs. The initiative also includes improved access to vandalism prevention resources—an ongoing concern for many storefront owners.
Nelson expressed strong support for the new proposals, highlighting the long-term goal of helping local businesses not just reopen, but remain competitive and resilient.
“It’s not enough to get our Seattle entrepreneurs and workers back to business—we have to keep them here,” said Nelson. “This package of reforms and critical investment shows our urgent commitment to supporting local businesses—something I’ve worked hard for during my time on the Council.”
“I am proud of all of the work we have done to help small businesses, and I am thrilled to see the level of investments the mayor has proposed for the 2026 budget,” added Nelson. “Moving forward, I will continue to fight for more no-brainer changes like these, while also exploring new innovative solutions.”
Several Seattle business owners responded positively to the announcement, expressing optimism about the potential impact of the new policies.
“This executive order will empower us and other small businesses like ours,” said Leah Martin, Partner and Architect at Allied8. “As we encounter regulatory hurdles in the future, we can point directly to this executive order. It will give a voice to small businesses dedicated to the making of affordable housing.”
Keith Tucker, Founder and Executive Director of Hip Hop Is Green, reflected on challenges encountered during the permitting process for one of the organization’s recent projects.
“We faced significant hurdles and multiple delays during the permitting process for Cherry Street Farm, which ultimately drove up our costs,” said Tucker. “The City’s increased support for innovative projects like Cherry Street Farm is essential in overcoming such obstacles, ensuring that we can continue to serve our community and promote sustainable practices.”
City leaders are urging business owners and residents to explore available resources through the Office of Economic Development and to stay engaged as the 2026 budget process moves forward.
Seattle’s small businesses continue to serve as a critical economic engine and a defining element of neighborhood identity. City officials reiterated their commitment to delivering practical tools that help local businesses not only survive—but succeed.
