“The decrease in sales causes other problems. We have larger inventories than needed for the current sales volume, causing higher interest costs, which can lead dealers to dump inventory and take losses on equipment,” he says. Funke says Congress needs to make it easier for farmers and the businesses that serve them to get loans, and ensure fair and open markets with other countries.

First Iowa State Bank chief financial officer Melissa Ann Spurgin says people trying to obtain loans through the Small Business Administration face a maze of rules and requirements, and the federal government needs to streamline the process.

“S-B-A loans require significantly more documentation, certifications, and post-closing compliance than conventional loans, with lender staff requiring continuous training due to frequent rule changes,” she says.

Spurgin says that makes it tough on the Albia bank if they lose an employee. “The departure of just one employee can eliminate a bank’s S-B-A capability entirely,” she says. Spurgin says ag businesses are often rich in assets, like land and equipment, but cash poor, and that can make it tougher to obtain an S-B-A loan.

The two made their comments at a hearing of the U-S Senate Small Business Committee Wednesday.