The banking industry has long been critical of the government-sponsored enterprise, but the system could provide valuable banking services to large swaths of the country currently lacking access to them.
Dozens of House members and four senators agree with arguments by farmers and lenders that a proposed change to the 7(a) program would disqualify worthy borrowers.
Bankers complain that the quasi-governmental system's new program designed to make more residential loans in four states goes well beyond its original mission.
Harvest is when farmers need funding the most. ProducePay has financed over $850 million of produce in under four years, disrupting traditional finance rules in the farm-to-table process.
Banks are adjusting loan terms, making use of federal loan guarantees and working with farmers to find new markets, all in an effort to mitigate the damage from a likely drop in soybean exports.
