Small business owners take their issue to D.C.
In response to the Basel III Endgame regulation, which could escalate capital costs for small businesses, Dina Akel, owner of Vieira Luxe, a bridal and special occasion wear shop in Nashua, joined more than 50 entrepreneurs in Washington, D.C., on Nov. 14. Their mission: to articulate to lawmakers and Federal Reserve officials the significant impact this regulation could have on small businesses like hers.
How did the Basel III Endgame regulation discussions in Washington impact your business outlook?
I went to D.C. to advocate for small businesses that will be impacted by this proposal. It’s concerning that it will be even more difficult to access capital than it already is. It was my first time in D.C. ever, so I was super nervous, but I knew how important it was to be there. After the discussion we had with our senators and representatives, I felt my story was heard, and I was confident they were in our corner. I’m confident they’ll do everything they can to advocate for us.
What major challenges did you discuss in Washington regarding the high interest rate environment?
One of the discussions was actually my personal story about recently applying for business funding through grants and loans. I applied to various grants and was unsuccessful, so alternatively I applied to my long-standing banks, and was also unsuccessful. I was feeling a little defeated at that time. I finally asked one of my banks and a representative from SBDC if they had any other funding resources for me. They connected me with a nonprofit lender. The first time around, I got denied. The second time I was approved. When I spoke to them, they told me we could aim for the 5 to 8 percent interest rate mark, which is what I was expecting. Once I got the approval, though, they provided me with a loan in the two-digit mark. That was definitely more than I could afford. However, I was desperate since the business was growing so quickly and I lacked the resources to keep up with it, so I accepted the loan, and honestly, we can’t afford for the situation to get any worse.
What outcomes or responses did you receive from your meetings in Washington?
We received very positive responses from our members of Congress. They were all willing to help and push against this proposal, which was great.
How might the outcomes from Washington affect your future business plans?
I’m a little worried that if this proposal goes through our customers might actually experience more inflated prices. We may not be able to provide the same high-quality products our customers love, and we may not be able to keep up with the demand and, God forbid, shut down in the process. I’m already struggling to keep up with all of it. People need to remember that when you’re a small business owner, in your first few years you are literally everything in the business: the customer representative, the cashier, the accountant, the inventory manager, custodian, website builder, you name it. When that gets to be too much, we have to delegate and hire people to help us. The reality is you need money to make money.
What were your key takeaways from the interactions in Washington?
Small businesses are already considered risky to lend to. If this goes forward, and interest rates also go up, we’ll be seeing a lot of businesses closed down.
What follow-up actions or continued advocacy plans do you have post-Washington visit?
I’m part of the Nashua Chamber of Commerce, the Suffolk University alumni, the National Association for Catering and Events, and a few more groups. I’ll make sure I have an opportunity to speak with them all about this. That way they can speak up and share their stories. They can call members of Congress and let them know why it’s important. We can all come together as a community to advocate for all small businesses.
Featured photo: Dina Akel, right, joined by U.S. Representative Ann McLane Kuster and a group of New Hampshire small business owners outside the U.S. Capitol. Courtesy photo.
