Item - 2025.EC23.10
Tracking Status
- City Council considered this item on October 8 and 9, 2025 and referred this item to an official or another committee or body. Consult the text of the decision for further information on the referral.
- This item was considered by Economic and Community Development Committee on September 16, 2025 and was adopted with amendments. It will be considered by City Council on October 8 and 9, 2025.
- See also EC24.7
EC23.10 - Creating a Small Business Friendly Approach to Licensing and Permitting
- Decision Type:
- ACTION
- Status:
- Referred
- Ward:
- 14 - Toronto - Danforth
City Council Decision
City Council on October 8 and 9, 2025, referred Item EC23.10 to the Economic and Community Development Committee for consideration.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2025/ec/bgrd/backgroundfile-258466.pdf
Communications (Committee)
Motions (City Council)
That City Council refer the item back to the Economic and Community Development Committee for further consideration.
EC23.10 - Creating a Small Business Friendly Approach to Licensing and Permitting
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 14 - Toronto - Danforth
Committee Recommendations
The Economic and Community Development Committee recommends that:
1. City Council request the Deputy City Manager, Infrastructure Services and the Deputy City Manager, Community and Emergency Services to report to the February 24, 2026, meeting of Economic and Community Development Committee on:
a. a more business- friendly approach and protocols for small business licenses and permits with a focus on compliance rather than enforcement and issuing a summons for these simple matters;
b. an outline for a cross divisional training plan by Municipal Licensing and Standards and Economic Development for small businesses; and
c. options to increase the role of Economic Development and Culture in facilitating small business administrative licensing and compliance, including the feasibility of shifting or sharing the responsibility between Municipal Licensing and Standards and Economic Development and Culture, in line with the one-stop-shop business licensing approach contemplated in the Economic Action Plan.
Origin
Summary
Small business is the backbone of our main streets and neighbourhoods and an important part of our local economy. Mayor Chow’s Love Local Campaign is one way the city is working to help small businesses be successful in these challenging and uncertain economic times.
It’s not easy running a small business in today’s economy. The vast majority of small businesses operate in compliance with the city’s bylaws and without complaints, except for them meeting Municipal Licensing and Standards administrative paperwork requirements for licencing, permits, encroachments and other bylaw matters. I am writing to share concerns raised by several local business owners regarding the recent enforcement approach taken by Municipal Licensing and Standards in relation to the new small business licensing categories as well as existing permits such as marketing display permits and encroachment agreements.
An enforcement style that may risk being perceived as punitive may unintentionally discourage the very entrepreneurs who contribute so much to our local economy. Toronto has prided itself on being a business-friendly city, and our regulatory practices should reflect our commitment.
A more coordinated approach is needed that will help protect small business and foster a thriving local economy.
Background Information
https://www.toronto.ca/legdocs/mmis/2025/ec/bgrd/backgroundfile-258466.pdf
Communications
Motions
That:
The Economic and Community Development Committee refer the item to the General Manager, Economic Development and Culture for consideration as part of the progress report on the Action Plan for Toronto’s Economy, which will report back on the Red Tape Hotline for businesses, to be brought forward in the first quarter of 2026 to the Economic and Community Development Committee, and request the General Manager, Economic Development and Culture to undertake the following:
1. enhanced marketing efforts of the Red Tape Hotline over the fourth quarter of 2025, in consultation with local Councillors to ensure uptake in their wards; and
2. work with the Executive Director, Municipal Licensing and Standards to build upon the success of the CaféTO model, with Economic Development and Culture and Municipal Licensing and Standards working collaboratively on awareness and education efforts for small business to support business compliance and reduce regulatory burden.
That Councillor Carroll be permitted to withdraw motion 2.
That the Economic and Community Development Committee amend Recommendation 1 by deleting the date "October 28, 2025" and replacing it with the date "February 24, 2026" so that it reads as follows:
1. City Council request the Deputy City Manager, Infrastructure Services and the Deputy City Manager, Community and Emergency Services to report to the February 24, 2026, meeting of Economic and Community Development Committee on:
a. a more business- friendly approach and protocols for small business licenses and permits with a focus on compliance rather than enforcement and issuing a summons for these simple matters;
b. an outline for a cross divisional training plan by Municipal Licensing and Standards and Economic Development for small businesses; and
c. options to increase the role of Economic Development in facilitating small business administrative licensing and compliance, including the feasibility of shifting or sharing the responsibility between Municipal Licensing and Standards and Economic Development and Culture, in line with the one-stop-shop business licensing approach contemplated in the Economic Action Plan.