ICBA testifies before Congress on community bank support for small business

ICBA Rural America and Agriculture Committee Chairman Gus Barker told Congress that community banks have served rural America well for decades and play a vital role in the economic prosperity of small businesses, farms, and families in thousands of local communities.

Details: Testifying before the Senate Committee on Small Business and Entrepreneurship, the president and CEO of First Community Bank in Newell, Iowa, said federal disaster-recovery programs will never displace community banks, which are always ready to provide vital resources at a moment’s notice. He cited bureaucratic obstacles at the Small Business Administration and FEMA that obstruct timely access to critically needed resources.

Recommendations: In his testimony, Barker said:

• SBA liens should be limited to the value of the loan, and the SBA should be willing to subordinate its liens when circumstances warrant.

• Benefits offered by agencies such as FEMA and the SBA should be better coordinated to ensure adequate resources are available to disaster victims.

• Congress should pass a meaningful farm bill in 2024 that addresses deteriorating conditions in farm country resulting from falling commodity prices.

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