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Jamaican Cafe Cuisine owner Nyron Cameron talks about the frustration of his restaurant dealing with federal regulations that impact day-to-day operations. | DBT PHOTO BY KATIE TABELING[/caption]
WILMINGTON — Delaware small business owners shared their issues with regulations and government policies with the U.S. Small Business Administration Office of Advocacy last week, in a bid to have their voices heard on Capitol Hill.
Ngozi Bell, the regional advocate with the SBA Office of Advocacy who represents Delaware and five surrounding states, gathered several businesses that crossed tourism, manufacturing, biotech, restaurants and more to discuss how big picture problems affect their bottom line last Wednesday.
Formed in 1976 after a series of White House summits on small business matters, the SBA Office of Advocacy is an independent office that represents the views of the nation’s small businesses in Congress, the White House and various federal agencies.
Bell and colleagues like SBA Office of Advocacy Deputy Chief Counsel Major Clark, as well as other attorneys and officials, came to discuss proposed policy issues that may impact the day-to-day work of small businesses, as well as sharing resources on a local level.
As the head of the organization, Clark noted that there’s been several legislation passed over the years designed to lift small businesses up, but the reality may not have matched the experience small business owners have experienced. That legislation includes the Prompt Payment Act, which requires agencies to pay vendors 30 days after receiving goods or an invoice, or the Small Business Innovation Research Act that puts billions of dollars in the hands of business owners.
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Major Clark, the Office of Advocacy's Deputy Chief Counsel for Advocacy, met with Delaware small business owners on Aug. 21 as part of a listening tour to understand some of the struggles they deal with. | DBT PHOTO BY KATIE TABELING[/caption]
“We read these regulations that come out, and sometimes they’re 15 pages and sometimes they’re 200 pages. I know that, sometimes, there’s problems in digesting the regulations and those running a business don’t have the time to read all that while making payroll,” Clark said. “So we want to hear from you, since we analyze these regulations and have advocates in each state to take the information of how it will impact your business.”
The summit was also instrumental in making direct connections for small business owners like Jason Roslewicz, the vice president of SUMURI. The digital forensics firm makes hardware and software as well as training and cybersecurity services, and clients include the Delaware State Police and the U.S. Department of Homeland Security. In fact, Roslewicz told Office of Advocacy offices that his firm still has an outstanding invoice from the Homeland Security for $177,000 for work previously done.
“We have a small budget, but as far as the Department of Homeland Security is considered, that’s a small amount. They continue to push it through legal reviews and they ask for detailed invoices of the work done,” Roslewicz said.
That adds up for a company like SUMURI, which has been in “hyper growth” mode for a decade. SUMURI started with a half million dollar budget and in a garage, to a 18,000 square-foot building and around 40 employees. The company’s budget is now at approximately $22 million. But more important to Roslewicz is SUMURI’s mission to help end human trafficking, a cause he’s passionate about.
“Along the way, there’s been things we had to learn when it comes to compassionate leave, FMLA, as well as the other regulations we need to navigate as we compete with the IBMs,” he said. “I worked for the Fortune 500 companies, and I could go back and make the money and benefits I used to. But then I don’t get the chance to change the world. We’re looking for partners in the state and federal government to help us position ourselves on where we need to be.”
Scott Bruneau, who just bought Delaware Metals with his wife, talked about the ever-changing demands from clients, such as domestic-provided materials that are more expensive and affidavits on whether its processes are green energy certified.
“We 100% support being good stewards of the earth. Barrel coolant that I use now to lubricate my machines to make parts is $1,000 a barrel more than oil-based water. I use three or give them,” he said. “There’s 110 of the machines we have right here in our shop in Delaware in the world. That machine is precise to one micron, and a red blood cell is eight microns wide. We want to leverage that?”
Delaware Metals machines are valued at $1.2 million, and allow the company to stand apart from competitors in Taiwan and Mexico. But Srueneau said that the cost of line items like Microsoft programs and invoice systems cost thousands of dollars — and unexpected expenses like broken air conditioning units can also stretch the budget.
“We got into this business because we have a passion for legacy and we want to play a role in our community. We did a food drive last year, after we closed that gap between revenue and profit. But we’re making less of a profit as a result of all these things that are required of us,” he said.
For others like NLP Aqua Solutions Chief Development Officer Devon Mitchell, the problem is the difference in the paperwork and certification to move a thriving business from one state to another. NLP Aqua Solutions creates water filtration systems that help remove synthetic per- and polyfluoroalkyl (PFAS) chemicals.
While the company hit some stumbles with name recognition in 2020, Mitchell said that the NLP Aqua is starting to explore opportunities to help farmers fertilize their crops while reducing nitrogen, phosphorus and potassium.
“We want to bring our manufacturing to Delaware, because I’m a Delawarean,” Mitchell said. “I don’t want to travel to Wisconsin or Florida, and I think there’s an opportunity to reach some of the largest industries in agriculture here. But the challenge in moving those certifications, because it’s pages and pages and we’re a small team.”
Other business owners talked about the frustration of the broad category of small business itself, which the SBA Office of Advocacy defines as an independent business having fewer than 500 employees. For Nyron Cameron, who opened Jamaican Cafe Cuisine in Bear about six years ago, it meant that there's a lot of new rules introduced with good intentions that end up hurting small businesses.
"We have 18 people, but we offered a 401(K) but we had to stop because the IRS wants us to give more of that back to the employees, which we couldn't afford. We offer 3% match if you've been with us for three years. I had some assistance from a local bank, which is great, but for some the risk is way too great," he said. "A lot of small businesses are closed not because they don't have vison, but it's not enough funding stability for them to follow the right procedures to land the right loans."
