Washington, DC — US Senator Joni Ernst says it’s been difficult for Iowans trying to recover from this year’s floods and tornadoes to navigate federal disaster programs.
Ernst, a Republican from Red Oak, says some Iowans initially got bad information about whether they were eligible for Small Business Administration loans.
Ernst says she’s heard from small business owners in rural Iowa hit by this year’s severe weather that they got better loans from their local community bank than were offered by the SBA.
SBA Economic Injury Disaster Loans were made available to Iowans hit by historic flooding and devastating tornadoes in counties that have been declared presidential disaster areas. The loans have an interest rate of four percent for businesses. Ernst has accused the SBA of misusing its loan authority, picking winners and losers with investments in firms working with artificial intelligence or “green” companies focused on environmental projects. She’s also critical of the agency’s TOTAL loan portfolio.
Nearly 18 percent of US residents live in rural areas. Ernst suggests if SBA lending were in line with the population, another one-point-three billion dollars worth of loans would be made to rural entrepreneurs.
