SEATTLE - Kristin Loffer Theiss’ passion is making toys.

Video: Local toymakers concerned about new toy regulations

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“I made my own patterns out of just regular paper,” she said.

But next month, her fledgling home business in Mount Vernon may come to a halt.

New federal guidelines require all toy makers to test products for lead and other chemicals. It’s an expensive endeavor for small toy makers, according to Loffer Theiss.

“No, there's no way I'd be able to do it at all.  I don't even think in numbers that have too many zeros,” she said.

The testing requirements were approved last summer by Congress after lead and other harmful chemicals were found in some children’s toys.

"This is Selecta. This is the company that won't be selling in the U.S. anymore," said Planet Happy toy owner Kaylene Burger. She says the German toy maker decided to halt shipments to America because of the new testing requirements.

"Certainly it's going to be a price increase," she said.

The law could mean higher prices and less to offer. And while she agrees with some parts of the law, she says it “needs to be done in a way that it doesn't shut out the small manufacturers and leave us with just the larger manufacturers."

But the Washington Public Interest Research Group, which fought for this law, says no one should be exempt.

"They need to comply with the law the big emphasis should be on children's health.  We shouldn't allow them to be exposed to dangerous chemicals like phthalates and lead,” said Blair Anundson of WashPirg.

Loffer Theiss may now focus on the overseas market, where she won't have to test her toys, which she's confident are safe for children.

"I think what concerns me is the general statement that anything handmade for babies in the US is illegal. That is a worrisome statement," she said.

The CPSC recently clarified that toys made of wood or cotton are exempt. 

Also, re-sell shops are not required to have toys tested, but will be required to keep up with recalls.

The new regulations take effect Feb. 10.