Contact: By: Sarah Lake

Rehoboth Beach | August 21, 2010 - The financial crisis has diminished the economic climate across the state and, at a recent roundtable discussion, Rep. Mike Castle listened as local small business owners aired their concerns.

"My sense is there are things that need to be done on the federal government level," Castle said. "We often deal with the bigger picture, but sometimes we need to consider the smaller picture, too."

Castle said most small business owners are having difficulties securing loans for expansion.

"Bankers say they're having trouble with regulators, such as the (Federal Deposit Insurance Corporation)," he said. "Lending to small businesses has not progressed, and I'm co-sponsoring legislation that helps with that situation."

Nick Benz, chief operating officer at Dogfish Head Brewery in Milton, said the key to acquiring a loan is to build a relationship with the bank.

"Tell them what you plan to do, and hit it," he said. "If you hit, that builds the relationship and next time you go to them, they'll be more relaxed."

Although there are practices that can make borrowing easier for small businesses, Benz said it's difficult to deal with a struggling bank.

"There are healthy banks, and those are the ones I keep tabs on," he said. "But there are also banks that need help, and I can't even begin to think about what those issues are."

Tom Colucci, president of CNC Solar in Rehoboth, said he finds it difficult to keep up with government subsidies and grant application processes.

"I've thought about ways to make the process easier, but I can't spend my time doing that. I've got to grow my business," he said, adding that government subsidies are not effective. "Subsidies are like a drug. I've seen my industry keep prices high because of these tax credits. (People) aren't driven to keep prices down."

The struggling housing market is also a cause for concern, as many local business owners have ties to the construction industry.

Chris Johnson, co-owner of O'Neal Brothers in Laurel, said there is no recovery in sight for Sussex County.

"It really fell off in mid-June, after the federal tax credit for new homebuyers was lifted," he said.

The rising cost of housing is also an issue, as many small business owners believe rising costs deter people from moving to Sussex County.

Susan Townley, owner of The Cultured Pearl restaurant in Rehoboth, said more people would buy homes if the government assisted them with down payments.

"Paying rent is not much different from paying for a mortgage," she said.

Castle said he plans to take the suggestions to Washington.

"It's certainly helpful for me to hear the people's concerns, so I can try to translate them into political action," he said.