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Balderson Reintroduces Bipartisan Bill to Provide Loan Relief for Rural Communities

WASHINGTON – Congressman Troy Balderson (R-OH) and Congresswoman Cindy Axne (D-IA) today reintroduced bipartisan legislation that would extend to U.S. Department of Agriculture’s (USDA) loan borrowers the same relief already provided to Small Business Administration (SBA) borrowers. The Rural Equal Aid Act would provide 6 months of payments for existing USDA Rural Development program borrowers, helping relieve financial strain during the ongoing COVID-19 pandemic.

“With one in every five Ohioans living in a rural area, our state can’t afford to let the needs of these communities go by the wayside,” said Balderson, a member of the House Agriculture Committee. “The Rural Equal Aid Act would ensure those among some of our hardest hit during this pandemic have equal access to relief, providing stability and peace of mind for the future. This commonsense provision should have been included in COVID relief packages in the first place, which is why I’m glad Congresswoman Axne has once again joined me in our shared fight for America’s rural communities.”

“The Rural Equal Aid Act would give USDA loan borrowers in rural Ohio much-needed relief in the midst of the ongoing pandemic,” said Misty Crosby, Executive Director of Buckeye Hills Regional Council and Treasurer of the Ohio Rural Development Alliance. “The economic disparities between rural communities and businesses and their urban peers have only been exacerbated in the wake of the pandemic. Easing the burden on borrowers will help them regain their footing as recovery continues.”

The CARES Act included 6 months of payments for borrowers with existing SBA loans, though this same relief was not given to borrowers with loans through the USDA Rural Development program. The Rural Equal Aid Act would make available equal relief for rural small businesses and nonprofits through four USDA loan programs:

  • Community Facilities loans made to public and nonprofit organizations for essential community facilities like hospitals, libraries, child care and community centers, and public facilities like fire stations or town halls.

  • Business and Industry loans made to small businesses, cooperatives, and nonprofits to develop and expand businesses in rural areas.

  • Two loan programs made through small local intermediaries. The borrowers from these programs are often unable to access other credit, and may have been unable to take advantage of the Paycheck Protection Program because they don’t have existing banking relationships.

    • The Intermediary Relending Program, which provides loans of no more than $250,000 made to borrowers who are unable to get credit elsewhere, but need capital to get started or expand their business. These loans average less than $100,000 and support small local businesses.
    • The Rural Microentrepreneur Assistance Program (RMAP), which offers loans of no more than $50,000 through local nonprofits. These loans are available to businesses with no more than 10 employees, making them a frequent choice for entrepreneurs looking for capital to start up a new business. In addition, RMAP loans are frequently used by women entrepreneurs.


The Rural Equal Aid Act is supported by the American Bankers Association, Independent Community Bankers Association, National Rural Health Association, National Rural Housing Coalition, and the National Association of Towns and Townships.

Balderson and Axne previously introduced the legislation in August 2020 during the 116th Congress, extending their long record of bipartisan collaboration.

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