Iowa Banker Says SBA Bureaucracy, Privileges Are Unfair to Disaster Victims

Newell, Iowa — An Iowa banker says federal disaster relief programs are too restrictive. Gus Barker is president and CEO of First Community Bank in Newell.

Barker testified Wednesday afternoon at a hearing before the U.S. Senate Small Business Committee. He told senators how he helped a client, a victim of the historic 1993 floods, apply for a loan from the Small Business Administration.

Barker says direct loans from the Small Business Administration and other federal programs have played a key role in helping disaster-hit businesses survive, and he’s urging the agency to make changes.

Barker says disaster victims should also be able to bundle federal benefits offered by different agencies, such as an SBA loan and a grant from the Federal Emergency Management Agency.

Barker, who has worked in his family’s bank for 47 years, serves on the board of directors of the Independent Community Bankers of America.