Coons, Carper say more can be done to start businesses

Delaware's two senators challenged a recent study rating the state as the second-worst place for a woman to start a business. However, the legislators conceded more work is needed to connect Delaware small-business owners with available capital.

"I don't agree with Delaware's ranking, but it is a reminder that there is unfinished work for us to do," Sen. Chris Coons, a Democrat, said Tuesday. "There isn't enough access to capital, counseling and opportunities as there should be."

Coons' remarks came during a walking tour to meet with women small-business owners in downtown Wilmington. He was joined by Sen. Tom Carper, also a Democrat; Delaware Economic Director Alan Levin; and Maria Contreras-Sweet, head of the U.S. Small Business Administration and a member of President Barack Obama's Cabinet.

American Express Open, a division of American Express focused on small business, ranked Delaware as the second-worst state for women to launch a business since the recession. Women-owned businesses in Delaware increased by 18 percent between 2007 and 2015, tying it with Florida and ranking it ahead of only Nevada, according to the study.

"I don't know what criteria American Express used, but I know a few years ago the unemployment rate in Delaware was around 9 percent and now its around 4.5 percent," Carper said.

Contreras-Sweet highlighted some of the SBA's efforts to connect women-owned businesses with available capital. She said the agency instituted zero fees on loans under $100,000 and started a new program, InnovateHER. The initiative provides an opportunity for entrepreneurs to showcase products or services that have a significant impact on the lives of women and families.

She said the new projects, which also include efforts to improve the technology used by female entrepreneurs, have increased SBA lending in the state.

"Our lending to women in Delaware is up by 22 percent," Contreras-Sweet said. "Our numbers are the strongest we've had in a long time."

During the walking tour, Coons and Contreras-Sweet met with several female small-business owners.

Christy Crkvenac, president and founder of Fulcrum Pharmacy, and Alisa Morkides, who launched Brew HaHa in 1994, were among the businesses owners who discussed how they got their starts.

Crkvenac started the pharmacy, a supplier of medicines to special-needs clients who require long-term care, in 2003 with an SBA loan. She said the SBA was "instrumental" in creating her business, but noted if she needed to expand or required additional capital she would use her own resources.

Morkides credited the SBA with providing financial support to launch the local coffee shop chain.

"I wouldn't be here without the SBA," Morkides said. "It helped me when I needed help."

Morkides acknowledged regular bank loans from lenders such as WSFS Bank also have played a role in her success. She said she faced bankruptcy twice and the bank worked with her to delay loan payments until she was more secure. The bank also provided her with a loan to launch a new juice bar in Delaware.

After meeting with the women entrepreneurs, Coons and Contreras-Sweet attended a roundtable with lenders and small-business owners to discuss how to increase the capital deployed to Delaware companies.

Coons said the study's results highlight the need for lenders and entrepreneurs to work together.

"I think we should all take [the study] as a sign to be more engaged and more effective at taking advantage of the financial services here in Delaware and urge [lenders] to get more involved in lending to the small, the start-up, the entrepreneur and the women-owned businesses that are possible to grow here in Delaware," he said.

Contact Jeff Mordock at (302) 324-2786, on Twitter @JeffMordockTNJ or jmordock@delawareonline.com.