NFIB

Frattarelli Speaks Up for Rhode Island Small Business
05/02/2002

Joan Frattarelli has always spoken her mind. It's a valuable quality for small business owners. And she's found it helpful over the past decade on the NFIB/Rhode Island Leadership Council, working with state lawmakers to show them how small business is affected by government laws and mandates. Frattarelli is office manager for the business she and her husband own, Smithfield Diesel & Transmission Repair.

"We've been NFIB members for more than a decade. A salesman stopped by during an election year -- Bush Sr. was running. The salesman was very opinionated when it came to politics, and we were both Bush supporters," Frattarelli laughs. "And, he explained the function of NFIB very well. I thought NFIB would be a good tool for a small business owner."

But Frattarelli didn't stay in the "dues-paying member" category for long. She moved right on to "activist."

"I happened to meet NFIB/Rhode Island State Director Terry Martiesian at a social function. We got to talking about the unfriendly state legislature at the time and had a nice conversation," she says.

Martiesian noticed her interest.

"I got a call the next day asking if I would join the Leadership Council. That was several years ago," Frattarelli says.

On the state's Leadership Council, Frattarelli says members closely monitor issues that affect small business in Rhode Island. But every NFIB member in Rhode Island has a voice in the process, she says.

"All members in Rhode Island get a ballot and we vote on different bills, and they compile the votes. Terry lobbies for us, according to what the membership thinks is important," Frattarelli says. "Leadership Council members also write letters and make calls on important issues. On close votes we get on the horn.

"A recent issue we've been involved in is the phase-out of the inventory tax. It's still not entirely complete. We're in the third or fourth year of a 10-year phase out," she says. "We are taxed on all equipment -- on office equipment, chairs, computers -- and inventory. Each city or town has its own tax rate. Here in Smithfield, it's about $38/$1000. It really discourages you from keeping much inventory, especially if your inventory is expensive.

"Even worse, communities in bordering states don't have this tax. So they can be more profitable and lower their prices. That lures customers to Massachusetts and Connecticut."

Quick Facts:
Business name: Smithfield Diesel & Transmission Repair, Inc.
Founded: 1974
Location: Smithfield, R.I.
Number of employees: 7

What services does your business provide?
We are a diesel engine repair facility. We don't do automobiles. We work on heavy-duty trucks, tractor trailers and heavy equipment. We are a Mack authorized service dealer, but we handle all manufacturers -- Cat, Cummins, Detroit -- all of them.

How did you start your business?
My husband was working for a construction company as a mechanic and started building this business part time in January 1974. He kept his full-time job. He did that for six months, but then he had enough business to make this his career. We didn't have a choice to do it another way -- we had three babies to feed! Now my son Anthony III is in business with us as the shop manager. He's doing a good job. My husband is still in the business, still here to advise.

What are your policy concerns for small business in Rhode Island?
We have a very strong labor state and that often hurts small business. Unions funnel money into the campaign of legislators that will help them. We have to fight tooth and nail to get our agenda through because many lawmakers are so strongly connected to the labor unions.

We also have one of the highest tax rates in the country.