U.S. Senator Joni Ernst (R-Iowa), who chairs the Senate Committee on Small Business and Entrepreneurship, is raising concerns from Iowa’s agricultural community about access to capital in rural areas with the Trump administration.
Ernst met with Melissa Spurgin, chief financial officer at First Iowa State Bank in Albia, and James Funke, sales manager at Del Clay Farm Equipment in Edgewood, before they testified at a recent committee hearing. The hearing focused on challenges faced by rural Iowans seeking business loans.
Following the hearing, Ernst called on Small Business Administration (SBA) Administrator Kelly Loeffler to address recommendations from the witnesses. These suggestions include reducing bureaucracy in the 7(a) loan program and updating opportunities for small local banks that are important to Iowa’s agricultural economy.
“During the Committee’s hearing, witnesses underscored the critical role rural community banks play in providing capital to small businesses, farmers, and entrepreneurs,” Senator Ernst wrote in her letter. “Our witnesses’ testimony outlined several key recommendations to tailor SBA loan programs to better serve community banks and rural small businesses. These include incorporating the judgment of experienced bankers who understand local market dynamics and seasonal income patterns; taking into account that assets are commonly inherited or jointly owned in rural communities; and ensuring greater clarity and support for community banks to avoid guaranty denials based on technicalities.”
“I am eager to partner with you to address these challenges so that rural community banks can more effectively utilize the 7(a) program, provide necessary capital to rural small businesses, and do so while safeguarding the integrity of SBA loan programs,” she concluded.
As chair of the Senate Committee on Small Business and Entrepreneurship, Ernst has advocated for improved access to capital for rural communities, small business owners, manufacturers, and young farmers. According to her official website, she also serves on committees related to Armed Services; Agriculture, Nutrition and Forestry; and Homeland Security and Governmental Affairs.
Ernst’s office provides constituent services across Iowa such as casework assistance and facilitating interactions with federal agencies (source). She was elected as Iowa’s first female U.S. senator in 2014 (source).
Melissa Spurgin and James Funke shared their experiences during a January 2026 committee hearing hosted by Ernst.
