NYC Chambers sound alarm as city loses 1,000+ businesses in Q3; Support CLCPA reforms
Alliance Calls on Albany to Pass CLCPA Reforms in Final State Budget Before Energy Mandates Deepen the Economic Toll
NEW YORK, NY — April 9, 2026 — Earlier today, the NYC Five Chamber Alliance—representing the Chambers of Commerce of the Bronx, Brooklyn, Manhattan, Queens, and Staten Island—held a press conference outside a vacant storefront near City Hall. The Alliance gathered to address a deepening economic crisis for small businesses across the five boroughs, fueled by consecutive waves of devastating economic data.
The chambers responded to the newly released New York City Economic Development Corporation (NYCEDC) snapshot, which revealed that New York City experienced a net loss of 1,050 businesses in the third quarter of 2025. Despite 4,660 new businesses opening, an estimated 5,700 businesses closed their doors. This marks another quarter of negative net business formation, compounding the crisis following a disastrous Q2 2025, which saw a net loss of 4,900 businesses.
Furthermore, this newly released business closure data follows recent revised state labor figures indicating that New York City lost 20,000 jobs in 2025.
In response to the alarming trajectory of job losses and business closures, the Alliance is urgently calling on the state legislature to include Governor Hochul’s proposed reforms to the 2019 Climate Leadership and Community Protection Act (CLCPA) in the final state budget. Small business owners joined chamber leadership at the event to highlight the severe impact that rising operational costs are already having on their livelihoods.
“New York City’s small businesses are fighting for survival, and the numbers don't lie,” the Alliance stated. “We cannot afford to burden our local economy with unworkable mandates while storefronts are emptying. The legislature must act now.”
The chambers warned that failing to pass CLCPA reforms will make the economic environment dramatically worse for local entrepreneurs. According to NYSERDA’s own analysis, the current climate mandate timeline would add $2,300 to New York City natural gas household costs, over $4,100 annually to upstate heating costs, and add more than $2.00 per gallon at the pump.
The state budget missed its April 1 deadline, and the proposed changes to the CLCPA remain a central sticking point in negotiations. The legislature has passed a budget extender through April 14, leaving a narrow window to enact these crucial reforms to protect New Yorkers from severe energy cost increases.
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