IARN – Iowa Third District Congresswoman Cindy Axne recently introduced a bill that would support rural businesses by providing up to nine months of USDA loan relief.
At the end of last month, Axne co-sponsored the Rural Equal Aid Act which would cover the full principal, interest and charges on some US Department of Agriculture loans for six months, and up to $ 9,000 per loan. months for three more months. Axne says the legislation is aimed at helping rural communities who are struggling financially because of the COVID-19 pandemic.
“It provides nine months of payments for the various USDA rural development loan programs,” Axne said. “What has happened throughout COVID is that the SBA has engaged with us at several levels to provide loans to small businesses, and the people who have received these loans to help small businesses were able to obtain loan relief. However, if you have a loan through the USDA, that loan relief is not there. I wanted to make sure that our rural businesses that have these USDA loans can stay in business just like those that have been offered the SBA loans.
The West Des Moines Democrat said the bill had the support of the Center for Rural Affairs, the American Bankers Association, the Iowa Bankers Association, the National Rural Housing Coalition and the National Association of Towns and Townships.
“This is really important not only to our rural Iowa communities and to the economic viability of these businesses, but also for the money that they are putting back into these communities by keeping people working and certainly having the opportunity. for people to come in and spend the money to make sure they can also keep these businesses afloat, “Axne said.” It makes good sense. I think when we support rural Iowa, we also support all of Iowa, for me it is important not to leave these communities behind.
The Rural Equal Aid Act was originally introduced by Axne in August 2020. The updated version of the legislation provides for the additional three months of relief of up to $ 9,000 per month to reflect the additional relief SBA provided in December COVID-19 Assistance Program.
Story courtesy of the Iowa Agribusiness Radio Network