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Congressman Frank Pallone Jr met Monday with a few local entrepreneurs at Cowerks in Asbury Park to discuss policies that can help bring about quality jobs across the state.

As the ranking member of the House Energy and Commerce Committee, Pallone wanted to hear the self starters thoughts on accessing capital, net neutrality, and immigration issues. He said a subcommittee focuses on communication, technology the internet.

At the table were Cowerks Co Founder Bret Morgan and Community Manager Margo Mindnich, digital marketer Corey Eulas of Factorial Digital and his team, the father daughter commercial real estate team comprised of Daniel Spector and Leanna Rawson of Spector Realty, and digital marketer and PR executive Deirdre Lopian of DLPR.

“I recognize the fact that small businesses and startups create most of the jobs in this country,” Pallone said. “And Asbury Park, in my opinion, is a great example of where startups, small businesses, technology, and the internet has reignited the city.”

Pallone, who made is fourth visit to Cowerks Monday, said the success of the shared workspace hub is a major factor in the revitalization of the town and he now sees it spreading across the state.

Founded in 2010 by Danny Croak, Gregory Edgerton and Morgan, Cowerks not only tapped into the local entrepreneurial spirit but redefined the shared workspace concept at its Lake Avenue and Main Street locations by offering flexible workspace, private office space, and a community for Monmouth and Ocean County entrepreneurs, startups, tech enthusiasts, and business leaders looking to network, learn, and grow their businesses.

Most entrepreneurs express a difficulty in accessing capital, Pallone said.

“Only 2 percent of startups receive venture capital,” he said. “Most of the the times, startups rely on credit cards, personal loans or seed funding. Crowdfunding is a method of receiving capital but there are limitation and caps on that.”

Pallone said the Jobs and Investor Confidence Act, which recently passed the House of Representatives, aims to change the capital formation laws, including updating the accredited investor definition which limits who can invest in most startups. The legislation will make it possible for more startups to receive funding.

Eulas is an Ocean Grove resident who employs 9 people across the nation. As a tech investor he gets more bang for his buck in places like South Carolina where venture capital, angel funding and seed investments are given a tax credit.

“You can invest up to $1 million and get a 30 percent tax credit,” he said. “The reason I’m not investing in technology in New Jersey is A – tech companies have to step up their game, and B – there is no incentive.”

Pallone said they could try to make easier access to whatever grants are available on the federal and state levels as well as opening the door locally for private investments.

Spector, a Wanamassa resident, questioned the need for more commercial ventures over the flux of residential properties being developed.

Pallone, a strong supporter of net neutrality, said startups with an innovative product or service must compete with large companies. With the repeal of net neutrality they must pay more to have their websites or services load as fast as their competitors.

The entrepreneurs questioned whether the state could pass its own net neutrality law. Pallone said California has passed its net neutrality law and New Jersey may look to do the same.

“These extra connection costs would make it harder for startups to attract funding and get off the ground,” he said.

The discussion also included how work visas affect the local work market.

“The problem is that in theory no one can get a work visa to come here unless the employer can show they can’t hire people locally,” Pallone said. “I do think there are many circumstances where a company certifies that is the case and it isn’t.”

He said just as with the nursing shortage from 20 years ago that brought in an influx of those from overseas to staff hospitals, the tech industry must provide an opportunity for education and training people to do the jobs.

“Other than better enforcement, there needs to be some sort of initiative at the federal, state or private industry level that says we can now train people here, particularly people of lower income or those who didn’t have that ability to get that kind of training or schooling.

In the end Pallone said entrepreneurs are important to growing the economy and creating quality jobs in the 21st century.

“We need to be investing in technology and creating policies that help entrepreneurs succeed,” he said. “I’m so thankful for the insights of those taking part in the roundtable and I look forward to bringing their ideas back to Washington.”

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