Small business red tape in Detroit would get slashed with new Duggan proposal

DETROIT (FOX 2) - For many entrepreneurs, starting and even maintaining a business in the City of Detroit can be extremely challenging, but now a new plan has been proposed to change all that.

Big picture view:

"After 15 years, I too, have still been going through the challenges of the rollercoaster ride of getting my license, renewing my license," said Alicia George, Motor City Java House Owner. "Fill this out. Pay this. I feel like I should get a degree, or diploma, or something."

A proposed plan by the Duggan administration is working to make it easier for small businesses in a plan presented before city council.

"Let's send you two ordinances, one of which will eliminate the business license fee for restaurants altogether, and rely on the state process," said Mayor Mike Duggan. "And the second for all other businesses will take you from a license that lasts for one year to a license that lasts for two years."

Council President Mary Sheffield says she got on board and decided to sponsor it.

"Making Detroit the best city in America to grow and start a small business," she said.

The highlight of the plan will remove licensing requirements that do not deal with protecting health and safety.

"So for restaurants, we are eliminating the city licensing requirement and sticking with the health department license as the primary insurance of health and safety," said Marcus Von Kapff, Detroit CEO.

This will eliminate about 60 days from the process to start a new restaurant in the city.

"That’s not sacrificing anything else around building quality, fire, all of that will happen," said Von Kapff.

For all other businesses seeking a license, the new system is expected to ease the process.

"We’re going to move to a two-year term as opposed to a one-year term, and then align that renewal against the building certificate of compliance process," said Von Kapff.

There will also be improvements to the process that includes upgrades in technology to speed up the approval process and help for business owners.

After city officials did months of analysis and engagement with business leaders, entrepreneurs say they finally feel seen and heard.

"This had to happen for existing businesses. It's been like pulling our hair out (with) the process every year, to new businesses coming in, so this is great," said Grace Keros, American Coney Island.

And the mayor wants council to act fast.

"We’re going to be asking council to move relatively quickly," Duggan said.

If approved, this proposal should be in place by the end of the year.