What's Happening?
Delaware Governor Matt Meyer has announced progress in implementing Executive Order 21, which he signed in May to establish an Office of Small Business Access (OSBA) within the Division of Small Business. The initiative aims to remove regulatory barriers,
promote equitable access, and foster collaboration for small businesses. Governor Meyer, a former small business owner, emphasized that the government should be a partner in growth, not a roadblock. In the months following the signing of EO 21, the OSBA has made significant strides, including establishing an inter-agency Small Business Liaison Network to quickly resolve concerns, conducting 13 Small Business Listening Tours across all three counties to gather feedback on policy and regulatory reform, and partnering with the Office of New Americans to engage immigrant business owners. Additionally, the OSBA is working with the Delaware Division of Public Health to review cottage food and food truck regulations to reduce barriers to entry and is preparing to launch a Joint Inspection Pilot in Fall 2026, allowing businesses to coordinate all agency inspections through OSBA. Samantha Jackson, owner of Amazing Graze, a mobile charcuterie cart, credited OSBA with facilitating meetings that helped her obtain her license.
Why It's Important?
This initiative is crucial for Delaware's economy, as small businesses are considered its backbone. By cutting unnecessary red tape and providing support, the state aims to create a more favorable environment for entrepreneurs to succeed. The establishment of the OSBA and its various programs directly addresses common challenges faced by small business owners, such as navigating complex regulations and licensing processes. The Joint Inspection Pilot, for instance, will streamline state inspection processes, saving businesses time and resources. The regulatory review of cottage food and food truck regulations is expected to expand opportunities for these businesses, potentially leading to increased local commerce and job creation. Furthermore, engaging with immigrant communities through the Office of New Americans ensures that support is accessible to a diverse range of entrepreneurs, fostering inclusive economic growth. These actions demonstrate a proactive approach by the state government to enhance the business climate and stimulate economic development.
What's Next?
Delaware is set to propose updates to its Cottage Food Regulations in early 2027, a result of collaboration between OSBA, the Governor’s Office, and the Division of Public Health. These proposed changes will expand opportunities for cottage food establishments by allowing them to sell products online to customers both within and outside Delaware, provided they meet applicable FDA registration and labeling requirements. The regulations will also permit cottage foods to be sold through retail establishments under the same conditions. The approach will shift from an inclusion-based list of permitted foods to an exclusion-based one. Additionally, the pre-operational inspection requirement prior to opening will be removed and replaced with a self-attestation checklist, with inspections only triggered by complaints. The Office of Small Business Access Joint Inspection Pilot is scheduled to launch in Fall 2026, which will enable small businesses to coordinate all agency inspections with OSBA. Businesses are encouraged to contact the OSBA for assistance or to report regulatory challenges.
Beyond the Headlines
The shift in regulatory philosophy from an inclusion-based to an exclusion-based approach for cottage food regulations signifies a broader move towards deregulation and trust in business owners to comply with standards, while still maintaining public health safeguards. This could set a precedent for other sectors and states looking to reduce administrative burdens. The emphasis on a 'self-attestation checklist' instead of mandatory pre-operational inspections reflects a modern governance trend that prioritizes efficiency and places more responsibility on businesses, with oversight primarily through complaint-driven inspections. This approach could foster a more dynamic entrepreneurial ecosystem by lowering initial hurdles for new businesses. The creation of a dedicated Office of Small Business Access and its proactive engagement through listening tours and a liaison network also highlights a recognition of the need for government to be more responsive and accessible to the business community, potentially leading to more effective policy-making that is directly informed by the experiences of small business owners.
