ICBA proposes new USDA Express loan program in congressional testimony

ICBA testified before Congress on its new proposal for a USDA program that would speed up loan approval times and thereby enhance access to credit in rural communities.

USDA Express: In testimony before the Senate Agriculture Committee’s subcommittee on commodities, Verlin “Gus” Barker of First Community Bank in Newell, Iowa, said the proposed USDA Express program would provide a guaranteed loan approval within 36 hours in exchange for a lower guarantee percentage of 50-75%. Modeled on the Small Business Administration’s Express program, the ICBA proposal would improve access to timely credit for family farmers and ranchers, he said.

More: At the hearing, Barker (pictured at right with Sens. Joni Ernst of Iowa and Tommy Tuberville of Alabama) also called on Congress to:

  • Raise loan limits for guaranteed farm ownership and operating loans.

  • Streamline USDA farm and rural development guaranteed loan applications.

  • Follow ICBA’s key principles for a new farm bill, which also include ensuring access to crop insurance and rejecting expanded Farm Credit System authorities.

  • Pass the Access to Credit for our Rural Economy (ACRE) Act, which would make interest income on farm real estate and rural mortgage loans.

Grassroots: Meanwhile, ICBA is calling on community bankers to urge their members of Congress to include its six key principles in this year’s farm bill.

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