Iowa Banker Says SBA Red Tape, Unfair Ties To Disaster Victims

Newell, Iowa — An Iowa banker says there’s too much red tape in federal disaster recovery programs. Gus Barker is president and CEO of First Community Bank in Newell.

Barker testified Wednesday afternoon at a hearing of the US Senate Small Business Committee. He told senators about helping a customer, who was a victim of the historic floods of 1993, complete a Small Business Administration loan application.

Barker says direct lending from the Small Business Administration and other federal programs have played a key role in the survival of disaster-stricken businesses and he’s urging the agency to make changes.

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

Barker, who has worked in his family-owned bank for 47 years, is on the Independent Community Bankers of America board of directors.