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.”
In the letter, the delegates ask specifically:
- Why is SBA requiring that Montana’s agricultural producers who are participants in SBA’s COVID-19 disaster relief loan programs send physical checks to out-of-state facilities in order for them to be endorsed by SBA?
- Could this process be streamlined to take place electronically? If so, would it help to have Congress act to provide legislative clarity?
- Can SBA modify its lien criteria in such a way that it does not interfere with the day-to-day operations of businesses and agricultural producers?
Certain Montana producers are experiencing difficulties with the lien requirements and compliance process for EIDL loans.
Originally, agriculture was not included in SBA EIDL programs but Congress authorized funding in the Paycheck Protection Program and Healthcare Enhancement Act earlier this year.
Office of Montana Senator Steve Daines
Office of Montana Congressman Greg Gianforte
Northern Ag Network