Ernst Slams SBA Disaster Recovery Support Gaps in Iowa

WASHINGTON – After federal agencies displayed a staggering lack of coordination and competency while responding to natural disasters in Iowa this spring, U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Committee on Small Business and Entrepreneurship, is standing up for rural Iowa communities left behind by the Small Business Administration’s (SBA) disaster assistance.

She pointed out multiple issues with the SBA response, including providing incorrect information, slow processing times, and gaps in coverage that have forced the private sector and state governments to step up and assist Iowa small businesses where the federal government has failed. Ernst questioned Iowa Deputy Secretary of Agriculture, Grant Menke, and President and CEO of First Community Bank, Verlin “Gus” Barker, about their firsthand experience with community banks and state governments supporting rural entrepreneurs in the wake of natural disasters.

Watch her opening statement here.

Watch her full line of questioning here.

“Small business owners who lose their livelihoods in a natural disaster have no time to spare. It’s incredibly frustrating to repeatedly hear from those seeking SBA assistance that they thought it was such a waste of their time. So much so that many walked away and didn’t complete applications. For those who stuck it out, SBA loan processing times were incredibly slow,” said Ranking Member Ernst. "It becomes even more challenging when you consider the fragmentation among federal agencies. A variety of resources are available after a disaster, including loans from SBA and USDA, but there is no parity between the two agencies.”

“Simply put, the Biden-Harris administration—in particular the SBA—is leaving these communities behind. SBA’s lending in rural areas is abysmal, at just around 15% in the agency’s two main programs,” Ernst continued. “That’s a slap in the face to hardworking Americans who are the ones paying for these programs. The Biden-Harris team must stop picking winners and losers and make this assistance accessible to all Americans.”

When Ernst questioned witnesses about the impact of federal telework on response times, both Barker and Cara Lank attested to how difficult it often is to get in contact with SBA employees. This is yet another example of the negative impact of federal telework abuse on services as Ernst continues to sound the alarm on behalf of taxpayers on hold.

Download photos from the hearing here.

Background:

Ernst has experienced the devastation natural disasters cause firsthand; during her time in the Iowa National Guard, she deployed multiple times to help Iowans recover from devastating floods. She has long worked to cut government red tape so disaster victims can better access the tools they need when disaster strikes. Most notably, she called for a one-stop-shop that connects America’s rural communities to federal resources, now known as the Rural Partnership Network, which is a new direct line of communication that helps coordinate hundreds of rural-focused federal support programs.

In light of this year’s devastation, Ernst has called for full resources to support Iowans. Ernst has also been visiting the Iowa communities affected and meeting directly with local leaders and emergency response officials to support recovery efforts.

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