Int. No. 971
By Council Members Hanif, Cabán, Epstein, Avilés and Louis
A Local Law in relation to mandating that the department of consumer and worker protection conduct a comprehensive one-time study and publish its findings on the economic effects of private equity firms on small businesses in New York city
Be it enacted by the Council as follows:
Section 1. a. Definitions. For the purposes of this section, the following terms have the following meanings:
Department. The term “department” means the department of consumer and worker protection.
Private equity. The term “private equity” means investment in companies that are not listed on the stock market.
Private equity firm. The term “private equity firm” means any entity that pools together money from individuals or other entities for private equity purchases.
Business closures. The term “business closures” means the rate at which small businesses close following private equity acquisition or market entry by competitors backed by private equity.
Revenue impacts on small businesses. The term “revenue impacts on small businesses” means changes in the revenue, the market share, and the financial viability of small businesses operating in sectors where private equity firms are present.
Worker displacement and job losses. The term “worker displacement and job losses” means any instance in which a worker is laid off, has their work hours reduced, or experiences wage or benefit cuts because of private equity-driven restructuring at their place or in their field of employment.
Loss of tax revenue. The term “loss of tax revenue” means the fiscal impact on the city when small businesses close.
Home services. The term “home services” means personal care support provided in the home, including medical and non-medical care.
Residential contractor. The term “residential contractor” means pest control services and similar essential dwelling services related to property maintenance, repairs, and improvements.
b. By July 1, 2027, the department shall conduct a study on the economic effects of private equity firms on small businesses within the city. This study shall include an examination of business closures, worker displacement and job losses, revenue impacts on small businesses, loss of tax revenue, and other metrics as the department deems appropriate. The department shall examine these metrics as they relate to the healthcare, dental care, pharmacy, veterinary, childcare, education, food and hospitality, fitness and wellness, home services, and residential contractor sectors among other sectors as the department deems appropriate. The department shall further examine whether and how private equity firms interact with or benefit from contracting with the city. The department may further define the terms “private equity” and “private equity firm” within this study as the department deems appropriate based on an assessment by the department of research on private equity, relevant industry standards, and relevant business practices.
c. By December 31, 2027, the department shall submit to the mayor and the council and publish on the website of the department a report on the findings from the study required by subdivision b of this section. The department shall include policy recommendations in this report. Policy recommendations may include recommendations contributive to:
1. Supporting small businesses that may be competing with businesses backed by private equity firms;
2. Supporting small businesses that may be at risk of store closures, employee attrition or sudden workforce downsizing, revenue loss, and other measures the department deems appropriate through, for instance:
(a) procurement preferences,
(b) expanded access to city-backed financing and technical assistance, and
(c) guidelines on the expansion of private equity firms within and into business sectors; and
3. Any other recommendations as the department deems appropriate.
§ 2. This local law takes effect immediately.
MH/LJB
LS #22762
6/3/2026 [4:19 pm]