GEORGETOWN — In the first 100 days of President Donald Trump’s second term, the Delaware Small Business Development Center was flooded with letters and emails for help.
“We’re kind of stuck because of the changes, and the credit is getting lighter because people are getting nervous,” Mike Bowman, the Delaware SBDC Director, said in April. “We’re very worried about small businesses because they’re not as able to be as resilient as others in the supply chain.”
Small businesses account for more than 98% of Delaware’s business profile and Gov. Matt Meyer has made it an economic priority to focus on those entrepreneurship professionals through existing state grant programs, as well as other wrap-around services with hopes of bringing the “jobs of tomorrow” to Delaware.
But that could be challenging as the U.S. Small Business Administration (SBA) works on recalibrating its focus under the Trump administration. U.S. SBA Director Kelly Loeffler announced in March that her office would be focused on initiatives to spark small to medium manufacturing in rural areas – all while taking on federal student loan servicing.
Sussex County Center Director Tom Thunstrom says the Delaware Small Business Development Center (SBDC) also sees a fair share of tourism, agriculture and manufacturing businesses in need of support. In his six years in the role, he’s helped 400 entrepreneurs and secured more than $13 million in capital for businesses. Like other Delaware SBDC officers, he’s also helped businesses workshop a business plan and loan applications as well as exploring financing options.
“When it comes to manufacturing, it’s honestly on a smaller scale compared to what you may see up north,” he said, pointing out that the SBDC target is for businesses that generate under $20 million in sales. “It’s great that [the administration] wants to do that, but my personal opinion is that there’s a lot you need to know about the workforce in manufacturing. A lot of the folks who were candidates in this space 20, 30 years ago are no longer there. We’ve gone through two generations of students where shop class wasn’t taught that much.”
The Federal Reserve Bank of St. Louis collects employment data for different sectors, and shows that in April, Delaware employed 26,500 people in manufacturing, a little more than half the jobs that were there in the 1990s. Delaware in particular is moving more toward pharmaceutical manufacturing rather than traditional services – and robotics has helped fill the employment gaps in the recent past.
The 145% tariff on Chinese goods will also complicate things for small manufacturers, as many may rely on exports for goods and machine parts. Thunstrom said recently he’s had many conversations with southern Delaware manufacturers grappling with the extra $100,000 to $200,000 in added costs to purchase equipment. Those talks turn to how that will impact the company’s business plan three to five years down the line.
“The best thing we can do is strategize with businesses to react in the short-term,” he said. “That’s all I can say. If the end game is to reshore [materials and processes] we help them figure out how to do it without getting too punitive on a price point.”
Down in Georgetown, Thurnstrom continues to get a lot of calls for appointments and services. It’s quite possibly the busiest he’s seen in his seven years with the Delaware SBDC which is supported by federal funds used to hire consultants and staff.
When asked about the Trump administration’s quick decisions and how that impacts the advice and services he gives to clients, Thurnstrom said that, much like in 2020, the hope is to remain nimble.
“We’ve largely told our clients to just expect the unexpected and be prepared to pivot,” he added. “Start thinking of a strategy long term, not short term.”
