U.S. senators Charles Grassley and Joni Ernst are moving to stop what they say is a Biden Administration plan that would put a federal agency in competition with banks and credit unions for loan customers.

The Republican senators from Iowa said President Joe Biden has proposed making the U.S. Small Business Administration into a kind of direct lender in a move that would force financial institutions to compete with the government.

“The government doesn’t need to get involved where the private sector suffices,” Grassley said in a written statement.

Grassley, Ernst and senators Tim Scott, R-South Carolina, and John Kennedy, R-Louisiana, have introduced the Protecting Access to Credit for Small Businesses Act which would make it illegal to have the Small Business Administration become such a lender.

“Our bill ensures small businesses and local lenders can continue their work without the government’s heavy hand in the way,” Grassley said.

Ernst added “The SBA has repeatedly shown that it is incapable of running a direct loan program without millions in subsidies from the American taxpayer.”

The owner of a Fort Dodge business is endorsing the legislation.

“As a business owner deeply invested in the success of small enterprises, I fully support this legislation as it is a crucial step in safeguarding the integrity and efficiency of lending for small businesses,” Dave Cassens, owner of R & J Material Handling, said in a statement issued by the senators.

“Let’s empower local lenders to drive economic growth, rather than relying on government bureaucracy prone to inefficiency,” Cassens added. “I feel as though this legislation ensures that entrepreneurs can continue to access vital financial resources through trusted community institutions.”

The legislation is supported by the Iowa Bankers Association, American Bankers Association, Consumer Bankers Association, Independent Community Bankers of America, Bank Policy Institute and America’s Credit Unions.

The bill awaits action by Senate committees.