Wyoming committee approves emergency bridge-loan program for businesses after disasters

Senate President Ogden Beitman introduced Senate File 195 to the Senate Agriculture, State & Public Lands & Water Resources Committee, proposing a state-run emergency bridge-loan program that would make funds available to small businesses in a county subject to a governor-declared natural disaster.

Beitman told the committee the idea grew from observing post-fire damage and recovery needs: "The whole point of this program, Mr. Chairman, is to establish emergency bridge loan program for small businesses affected by declared natural disasters, ensuring they can recover and continue operations." He said loans would cover immediate needs such as fencing repair, livestock replacement and hay purchases and stressed the program is designed to keep businesses operating while insurance or federal aid is pending.

The bill would create a $50 million appropriation from the general fund as a revolving account. Loans would be 0% interest, secured by collateral such as insurance proceeds or business assets, capped at $1,500,000 per business and must be repaid within three years. Participation by financial institutions is voluntary; the bill directs the Department of Agriculture to promulgate rules and requires annual reporting to the committee. Beitman also proposed, and the committee adopted, an amendment allowing the governor to declare a natural disaster upon failure of infrastructure including but not limited to roads, bridges, dams and irrigation infrastructure.

Department of Agriculture Director Doug Miyamoto told senators the department has not administered a program like this and would need technical assistance, including banking expertise and software for applications and loan tracking: "This is new territory for the Department of Agriculture, obviously. We would need to gain some institutional banking knowledge in order to promulgate rules," he said. Miyamoto flagged concern about a statutory timing requirement in the bill (one draft reading 24 hours, another 10 days) and said the department would work with the sponsor on a reasonable turnaround.

Representatives of the banking community and landowners spoke in support. Scott Meyer of the Wyoming Bankers Association said banks are willing to participate and help with rulemaking, and he compared the concept to PPP-style rapid response lending. Landowner Cindy Delancey called the bill a practical tool for stabilizing ranch and farm businesses after disasters and said local bankers know their customers best. Jim McGagney of the Wyoming Stock Growers Association also voiced strong support, while urging clarity on how the law would operate in practice.

Committee discussion focused on borrower eligibility, collateral priorities and the bank role as the "gatekeeper" for underwriting recommendations to the department. Senators asked whether collateral requirements would effectively limit access for some applicants; speakers and the sponsor said those issues would be developed in rulemaking and through consultation with financial institutions. The Department of Agriculture and the sponsor agreed to continue working on timelines and technical details before floor consideration.

The committee voted to pass Senate File 195 as amended. Clayton called the roll and the clerk reported five ayes and no nays; the committee recorded the bill as passed out of committee as amended.

The bill now moves to further legislative consideration; the Department of Agriculture will be tasked with rulemaking and systems work to implement the program if the Legislature and governor finalize authorizing language and appropriation.