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Letter to The Honorable Jovita Carranza, Administrator of the U.S. Small Business Administration - Daines, Gianforte Urge Administration to Streamline COVID-19 Relief for Montana Ag

Letter

Date: Aug. 10, 2020
Location: Washington, DC
Issues: Agriculture and Food Business, Consumers, and Employees

Dear Administrator Carranza:
It has come to our attention that the Small Business Administration (SBA) is placing liens on
agricultural producers who are participating in COVID-19 disaster relief loan programs, like 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. Upon receipt, SBA endorses the check and then mails it back to the loan recipient.
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.
With that in mind, we have several questions for which we are hopeful you can provide clarification:
 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?
Thank you for your work to provide economic relief to America's small businesses, and we look
forward to receiving your answers to the above questions.
Sincerely,

STEVE DAINES GREG GIANFORTE
United States Senator United States Congressman


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