(Radio Iowa) – Some Iowa business owners were in Washington, D-C this week to tell senators about the difficulties facing the agricultural economy.
Jay Funke is the sales manager at Del Clay Farm Equipment in Edgewood in northeast Iowa. Funke said low commodity prices have cause a decrease in sales that leads to other problems. He says higher inventories cause higher interest costs, which can lead dealers to dump inventory and take losses on equipment. Funke says Congress needs to make it easier for farmers and the businesses that serve them to get loans, and ensure fair and open markets with other countries. First Iowa State Bank chief financial officer Melissa Ann Spurgin says people trying to obtain loans through the Small Business Administration face a maze of rules and requirements, and the federal government needs to streamline the process.
Spurgin says if the Albia bank if they loses just one employee, it can eliminate a bank’s S-B-A capability entirely.. Spurgin says ag businesses are often rich in assets, like land and equipment, but cash poor, amd that can make it tougher to obtain an S-B-A loan.
