Ernst rips SBA for response to Iowa small businesses impacted by disaster

WASHINGTON — Iowa Senator Joni Ernst spoke out during a Senate committee hearing yesterday on rural Iowa communities who have been left behind by the Small Business Administration’s disaster assistance.

Ernst says the federal government needs to put rural small businesses on the same footing as those in larger cities and urban centers. 

Ernst says when natural disasters hit Iowa earlier this year, she saw evidence that inflation was having an impact on recovery efforts. “I was on the ground after each of these disasters and heard first-hand from Iowans about the difficulties they had in navigating recovery efforts. I heard from folks whose insurance couldn’t cover the full repair or replacement of homes, businesses or equipment, because reckless Washington spending has made everything more expensive. Even though they did the right thing and put money away in case of emergency, hyperinflation meant it just wasn’t enough.”

Ernst says while the initial response by federal agencies to the disasters was good, some of the information they were providing those on the ground was bad.  “FEMA and SBA did quickly set up recovery centers, and I want to thank them for that, but business owners were left frustrated by the two agencies’ lack of coordination and competence. For example, Iowans received conflicting information about eligibility and application process. In Shelby County, which was hit by tornadoes in the spring, SBA provided outdated and completely wrong information, including sending their disaster victims to a dead website.”

Ernst says small business owners who lose their livelihoods in a natural disaster have no time to spare and many in Iowa recently have felt their time was wasted by the SBA.  “It’s incredibly frustrating to repeatedly hear from those seeking SBA assistance that they thought it was 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. It becomes even more challenging when you consider the fragmentation among federal agencies.”

  Ernst is the ranking member of the Senate’s Committee on Small Business and Entrepreneurship.