U.S. CONGRESS – U.S. Senator Steve Daines and Congressman Greg Gianforte sent a letter to the Small Business Administration (SBA) asking it to clarify the rationale behind its lien criteria and loan processes for the Economic Injury Disaster Loan (EIDL) program.
“It is our understanding that SBA is requiring loan recipients to send physical checks via certified mail from Montana to Fort Worth, Texas in order for SBA to endorse purchases made by agricultural producers in the daily course of their business operations,” Daines and Gianforte wrote. “This process imposes excessive burdens on Montana’s agricultural producers. In addition to the hassle, every day that it takes SBA to return the check to the loan recipient costs the recipient interest on their operating loan, and prevents them from investing in more livestock, supplies, or equipment. It is imperative that SBA modify its lien criteria and loan processes to match with how agricultural businesses operate.”
To read the full letter, click HERE.
Certain Montana producers are experiencing difficulties with the lien requirements and compliance process for EIDL loans. Daines and Gianforte are calling on the SBA to look into this situation and streamline the process for farmers and ranchers trying to get relief during the COVID-19 pandemic.