Just like any business, you pay more, you can do more. The feds want to to make darn sure they get their cut. There is some common sense reasoning behind it, to protect the general population from someone who might sell some gawdawful concoction as a miracle skin cure, but for the rest of soapmakers who can't afford thousands just so they can say their bar is moisturizing or soothing, it sucks.
I was going to make wooden kid's toys some time ago. Then the feds decided any product developed for children under 12 had to be tested (costing thousands per item) and I said screw it. The US claims to support small business, but everything I see, from my own experience, says we're not. It's sad.