Fighting for Iowa Small Businesses, Ernst Demands Answers from Biden Administration

WASHINGTON—U.S. Senator Joni Ernst (R-Iowa), a senior member of the Senate Committee on Small Business and Entrepreneurship, is continuing to fight for Iowa small businesses struggling due to 40-year high inflation levels. After questioning Small Business Administrator Isabel Guzman at a committee hearing yesterday, Ernst is following up and asking for detailed, written responses from the Biden administration on their plans to support small businesses.

In a letter to Administrator Guzman, Ernst writes, “I write to express my concern on the economic impact of record high inflation levels facing small businesses across Iowa and America. This issue has carved deeply into the economic security of small businesses, impacting their ability to provide paychecks to working families; especially those in rural communities... As I speak with small businesses across the state of Iowa as part of my 99 County Tour, I continue to hear how the high rate of inflation has created a significant financial burden across small business value chains.”

Ernst continues, “Small businesses are the backbone of the American economy, and as such, pressures caused by recent inflation levels have created a burden on economic security. The impact of inflation on small businesses in the United States is not transitory or short-term. With this in mind, I respectfully request that you provide answers to the following by May 28, 2022:

1. How is the U.S. Small Business Administration planning to address the impact of inflation with regards to small business programs?
2. How is the U.S. Small Business Administration planning to address the disproportionate impact of inflation on rural small businesses?
3. How is the U.S. Small Business Administration planning to address the rising costs of doing business with the government on small business contractors as a result of current inflation levels, especially for small disadvantaged businesses?
4. Given inflation is the largest issue facing small businesses today, what steps has the U.S. Small Business Administration taken to support the Office of Advocacy in encouraging the reduction of burdensome regulations on small businesses to help address the inflation crisis?
5. As record federal spending continues to impact inflation levels, how will the U.S. Small Business Administration reduce its spending levels to minimize the inflationary impact on small businesses? 
6. With regard to the Paycheck Protection Program, what steps has the U.S. Small Business Administration taken to investigate fraud that has occurred and stop fraud going forward?

To read the full letter, click here.

Ernst released a video featuring testimonials from Iowa small businesses who are feeling the pinch from inflation and supply chain challenges.

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