CoBank Approved as a Participating Lender for SBA’s Paycheck Protection Program
Bank Now Accepting PPP Loan Applications for Eligible Customers
DENVER (April 09, 2020) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has been officially designated as a participating lender under the Small Business Administration’s Paycheck Protection Program (PPP), a key part of the federal government’s economic relief response to the COVID-19 pandemic.
CoBank is now accepting loan applications for eligible borrowers that want to participate in the program, through which approximately $350 billion in federal funds has been allocated to cover companies’ payroll costs and other qualifying expenses. The bank has established a dedicated team to process these loans as quickly and efficiently as possible.
“Interest in the Paycheck Protection Program has been very high across our customer base,” said Thomas Halverson, CoBank president and CEO. “We’re pleased to now be able to help customers access these resources at a time of significant economic dislocation related to the COVID-19 crisis.”
The PPP is an important component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act recently passed by Congress. The program provides 100% federally guaranteed loans to small businesses with forgiveness of outstanding principal plus accrued interest, assuming key conditions have been met. The program helps businesses cover costs related to payroll and benefits as well as rent, utilities and interest on mortgages during the coronavirus outbreak. The PPP is designed for small businesses with 500 or fewer employees.
To begin the application process for a PPP loan, CoBank customers should reach out to their relationship manager. Alternatively, customers can fill out and submit CoBank’s PPP Interest Form available on the CoBank web site.
CoBank is a $145 billion cooperative bank serving vital industries across rural America. The bank provides commercial loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.