DENVER (January 13, 2020) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has re-opened lending to small businesses under the Small Business Administration’s Paycheck Protection Program, a key part of the federal government’s economic relief response to the COVID-19 pandemic.
The SBA, in consultation with the Treasury Department, has renewed the PPP program to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
CoBank is now accepting loan applications for eligible borrowers that want to participate in the program. The bank has established a dedicated team to process these loans as quickly and efficiently as possible.
“The first round of the Paycheck Protection Program in 2020 was critical in helping our customers during a period of significant economic dislocation related to the COVID-19 crisis,” said Eric Itambo, CoBank’s chief banking officer. “The CoBank team is pleased to participate in this second round as we continue supporting customers and their workers.”
The PPP is an important component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in 2020. 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 second round includes important updates which are available at sba.gov.
To begin the application process for a PPP loan, CoBank customers should reach out to their relationship manager and additional resources are available at cobank.com/sba-ppp.
CoBank is a $148 billion cooperative bank serving vital industries across rural America. The bank provides 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.