Hoeven Outlines Work to Provide Consumers with Greater Financial Choices, Expand Ag Producer Loans, Loan Guarantees

Senator Speaks to North Dakota Community Bankers

BISMARCK, N.D. – At the annual convention for the Independent Community Banks of North Dakota today, Senator John Hoeven outlined his work to provide consumers with more financial options, as well as his provision in the Senate farm bill that raises the limits for loans and loan guarantees under the U.S. Department of Agriculture (USDA). 

“We’re working to support our community banks, because these small financial institutions provide important services in local communities, whether it’s a family looking to buy a home or an entrepreneur looking to start or grow a small business,” said Hoeven. “We’ve passed legislation that provides regulatory relief for small financial institutions so consumers can have more financial choices.” 

Economic Growth, Regulatory Relief and Consumer Protection Act

Hoeven supported the Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law earlier this year. The legislation helps ensure consumers have access to options in the financial services market by providing regulatory relief to small community banks and credit unions. This reflects the fact that smaller institutions do not pose significant risk to the nation’s economy. Accordingly, the bill eases reporting and examination requirements for community banks and credit unions, makes it easier for these institutions to originate residential mortgages for qualified borrowers and exempts them from complex rules that restrict their investments. 

Increased Access to Capital for Farmers and Ranchers

Additionally, Hoeven successfully included a provision in the Senate farm bill to increase access to capital for farmers and ranchers. The Senate farm bill increases the Farm Service Agency (FSA) Guaranteed Operating and Ownership loans from $1.39 million to $1.75 million, and Direct Operating loans from $300,000 to $400,000 and Ownership Loans from $300,000 to $600,000.                                                                                                                                        

“We worked to raise the FSA loan limits in the Senate farm bill to ensure that our producers have access to capital to maintain and grow their operations,” said Hoeven. “Increasing the maximum loan guarantee to $1.75 million allows farmers to work with their local banks to maintain their operations, while protecting these institutions from being saddled with too much risk during uncertain times.”