U.S. Senator Joni Ernst (R-Iowa), who chairs the Senate Committee on Small Business and Entrepreneurship, has raised concerns from Iowa’s agricultural community about challenges in accessing capital in rural areas to the Trump administration.
Ernst led a committee hearing that included testimony from two Iowans, Melissa Spurgin and James Funke, who described difficulties faced by rural small businesses and banks. Following the hearing, Ernst called on Small Business Administration (SBA) Administrator Kelly Loeffler to review and respond to their recommendations for improving support for rural communities. She specifically highlighted the need to reduce bureaucracy in the SBA’s 7(a) loan program and modernize opportunities for local banks serving Iowa’s agricultural sector.
In a letter to Loeffler, Ernst wrote: “During the Committee’s hearing, witnesses underscored the critical role rural community banks play in providing capital to small businesses, farmers, and entrepreneurs. Our witnesses' testimony outlined several key recommendations to tailor SBA loan programs to better serve community banks and rural small businesses. These include incorporating the judgment of experienced bankers who understand local market dynamics and seasonal income patterns; taking into account that assets are commonly inherited or jointly owned in rural communities; and ensuring greater clarity and support for community banks to avoid guaranty denials based on technicalities.”
She added: “I am eager to partner with you to address these challenges so that rural community banks can more effectively utilize the 7(a) program, provide necessary capital to rural small businesses, and do so while safeguarding the integrity of SBA loan programs.”
Ernst has consistently advocated for increased access to capital for rural communities, including support for small business owners, manufacturers, and young farmers. The recent committee hearing featured Spurgin—chief financial officer at First Iowa State Bank in Albia—and Funke—sales manager at Del Clay Farm Equipment in Edgewood—as witnesses.
The Senate Small Business and Entrepreneurship Committee plays a significant role in shaping national fiscal priorities by supporting informed decision-making on federal budget matters through oversight functions such as those over the Congressional Budget Office (official website). The committee was established under the Congressional Budget and Impoundment Control Act of 1974 (official website), operates out of Washington D.C., offers policy options regarding components of the federal budget (official website), contributes through resolutions and reconciliation instructions (official website), and provides nonpartisan analysis during budget planning (official website). Lindsey Graham currently serves as chairman with Jeff Merkley as ranking member (official website).
