U.S. Senator Joni Ernst (R-Iowa), chair of the U.S. Senate Committee on Small Business and Entrepreneurship, has brought concerns from Iowa’s agricultural community about challenges in accessing capital in rural areas to federal officials.
Ernst met with Melissa Spurgin, chief financial officer at First Iowa State Bank from Albia, and James Funke, sales manager at Del Clay Farm Equipment from Edgewood, before they testified at a recent committee hearing. The session focused on barriers faced by rural Iowans in obtaining business loans.
Following the hearing, Ernst called on Small Business Administration (SBA) Administrator Kelly Loeffler to consider the recommendations made by Spurgin and Funke. In her letter to Loeffler, Ernst highlighted the need for changes to support rural communities, reduce bureaucracy in the SBA’s 7(a) loan program, and modernize options for small local banks that are important to Iowa’s agriculture sector.
“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 [source], Ernst leads efforts related to supporting small business owners and increasing access to capital for manufacturers and young farmers across Iowa [source]. Her office also provides constituent services such as casework assistance throughout Iowa [source].
Ernst is recognized as both the first woman from Iowa elected to serve in the U.S. Senate and as its first female combat veteran [source].
Melissa Spurgin and James Funke appeared as witnesses during a January 2026 committee hearing hosted by Ernst.
