Ernst, Reynolds Urge USDA to Improve Disaster Assistance for Iowa Farmers

Letter

Given the evolving challenges faced by farmers and ranchers in Iowa and across the nation, it is crucial that they have access to every available tool to help them rebuild after natural disasters.

The Small Business Administration's (SBA) disaster assistance programs offer vital, flexible support in difficult times to small businesses. We understand that these programs are limited to non-agricultural small businesses, with USDA providing access to complementary programs, such as the Emergency Loan Program, that are intended and specifically designed to assist agricultural producers like farmers and ranchers. While USDA and SBA coordinate to ensure these programs effectively reach rural small businesses, we continue to hear from disaster victims that the terms available to borrowers within the USDA programs are less favorable compared to those at SBA, which offer a greater amount of flexibility with interest, balance, and payment terms. Similar to our request today, the SBA provided much of this flexibility in 2022 and 2023 by utilizing administrative authorities.

As Iowans begin to recover from the many disasters that have impacted them, the historical and continued lack of fairness in what rural communities are offered by USDA is having a meaningful and substantial impact. Consideration should be given to these communities, which are integral to feeding America and the world, by granting them the same or similar terms through USDA as those that are provided to less rural areas through SBA.

Source