By Andi Anderson
Joni Ernst is working to ensure the concerns of Iowa’s agricultural and rural business community are heard at the highest levels of the federal government.
In her role as chair of the U.S. Senate Committee on Small Business and Entrepreneurship, she is drawing attention to barriers that rural communities face when trying to access capital.
Following a recent committee hearing, Senator Ernst elevated the experiences of Iowans who testified challenges within current loan programs.
After the hearing, she called Small Business Administration Administrator Kelly Loeffler to directly consider the recommendations shared by witnesses.
These recommendations focused on supporting rural communities, reducing bureaucracy within the SBA 7(a) loan program, and modernizing opportunities for small local banks that play a vital role in Iowa’s agricultural economy.
“During the Committee’s hearing, witnesses underscored the critical role rural community banks play in providing capital to small businesses, farmers, and entrepreneurs,” Senator Ernst wrote in the letter. “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; considering 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.”
Ernst emphasized that community banks are essential partners for rural development because they understand local needs and agricultural cycles.
She expressed a willingness to work with federal leaders to improve existing systems while maintaining program integrity.
“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,” she concluded.
As committee chair, Ernst has consistently supported efforts to expand access to capital for rural communities, manufacturers, small business owners, and young farmers.
The January 2026 hearing featured Iowa witnesses Melissa Spurgin of Albia, the chief financial officer at First Iowa State Bank, and James Funke of Edgewood, a sales manager at Del Clay Farm Equipment. Their testimony helped illustrate real challenges faced by rural lenders and businesses.
By elevating these voices, Senator Ernst aims to encourage meaningful reforms that strengthen rural economies and ensure fair access to financial resources across agricultural communities.
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Categories: Iowa, Government & Policy