U.S. Reps. Steve Womack (R-AR) and French Hill (R-AR) joined their congressional home state Republican colleagues in seeking action by the U.S. Small Business Administration (SBA) to ensure federal funding for Arkansas poultry farmers.
The Republican members of Congress asked SBA Administrator Linda McMahon to reconsider a proposed rule on the Express Loan Programs and Affiliation Standards, which facilitate essential capital access via SBA 7(a) loans for small family farmers in the United States, according to a Nov. 19 letter signed by Reps.
Womack and Hill, as well as U.S. Sens. John Boozman (R-AR) and Tom Cotton (R-AR) and U.S. Reps. Rick Crawford (R-AR) and Bruce Westerman (R-AR).
“We are deeply concerned that, if finalized, provisions in this proposed rule would effectively end the ability of Arkansas’s family farmers and small businesses to utilize SBA’s loan programs,” wrote the lawmakers, who urged the agency to revise the proposed rule.
If enacted, the proposed rule would impose “unworkable eligibility requirements” on poultry farmers who rely on SBA’s 7(a) loan program, which provides loan guarantees to assist small businesses in obtaining credit, wrote the delegation.
“Poultry is the largest segment of Arkansas’s agricultural industry, creating and supporting over 150,000 jobs including thousands of family farms,” wrote the members. “Access to capital is one of the most significant barriers to entry for farming, which is why Congress specifically included agriculture in the SBA’s mandate. This proposed rule would jeopardize the livelihood of thousands of small family farms and small businesses across Arkansas.”
The lawmakers noted that independent poultry farmers are solely responsible for obtaining financing, handling daily operations, and paying all taxes. “The poultry farmer is not a partner, agent, or employee of the integrator,” they wrote.
Additionally, they pointed out that the proposed rule isn’t mandated by any federal law or congressional action and the loans constitute only a small portion of the overall program.
However, 7(a) loans “have an outsized impact on our state,” the Arkansas members wrote, asking that the SBA not arbitrarily exclude poultry farmers from the loan program.