Products and Services
To support our customers’ growth and success, CoBank offers a broad range of competitively priced, flexible loan programs, leasing services and other financial services including cash management, online services and specialized financial services to meet your changing business needs.
CoBank offers a wide variety of competitively priced loan products, from seasonal loans to term debt. Our deeply experienced relationship managers understand the unique financing needs of the industries we serve, and can help you devise the best package of loan products to meet the needs of your business. In addition, as a member-owned cooperative lender, we offer qualified borrowers patronage based on their average daily loan balance for the year, which further lowers their overall net cost.
CoBank offers its agribusiness customers seasonal loans to finance current or seasonal assets, inventories, accounts receivable, commodities and other short-term needs. Seasonal loans usually mature within 12 to 18 months, and both variable and fixed rates are available. Many of CoBank's established customers maintain lines of credit for seasonal needs like inventory and operating capital. Inventory loans include financing for everything from feed and fertilizer to chemicals, tires and lubricants. Asset-based loans can be tailored for many different purposes. Operating capital financing is usually used to meet periodic cash flow shortfalls or to cover immediate cash needs.
Intermediate and Long-term Financing
CoBank also offers loans to meet your long-term business objectives, including the construction of new facilities, remodeling or expanding existing facilities, land or equipment purchases, or to finance mergers and acquisitions, long-term assets and working capital. Fixed and variable rates are available, with the flexibility to meet your specific business objectives. Our loan maturities typically vary by industry to correlate with customers' differing financing needs. Working closely with insurance companies and investment banks also allows us to provide competitive long-term private placement financing.
Streamlined Refinance Program
U.S. rural water and wastewater providers can take advantage of a streamlined process to refinance their existing U.S. Department of Agriculture Rural Development loans. Refinanced loans issued under the program will offer multiple benefits to participating customers, including historically low interest rates; simple credit application packet; flexible structures that reduce payments or shorten maturity; streamlined approval and closing process, and patronage refunds for qualified borrowers. The program takes advantage of the current low interest rate environment, but rates fluctuate daily based upon market conditions.
Leasing solutions through CoBank Farm Credit Leasing deliver the benefits of leasing to agriculture and rural businesses throughout the U.S. As a proud member of the Farm Credit System and wholly owned subsidiary of CoBank, CoBank Farm Credit Leasing has provided lease financing to producers, agribusinesses, agricultural cooperatives and rural utility cooperatives for decades. Our experienced team understands your financing needs.
We have used our industry knowledge to create a broad range of flexible, easy-to-use leasing solutions, targeted toward helping you achieve your financial objectives. For any business, the real value of equipment lies in using it, not owning it. Leasing offers another way to finance the assets you need to conduct business and provides benefits not typically associated with other forms of financing. It is an excellent way to save costs, improve cash flow, avoid equipment obsolescence, gain tax advantages and free up capital.
Lease options offered by CoBank Farm Credit Leasing allow customers to take advantage of tax benefits, control cash flow and manage credit facilities. By leasing business critical equipment, vehicles and facilities, our customers gain financial flexibility to drive success.
For additional information about leasing, click on the links below:
- Leasing Solutions
- Business Benefits of Leasing
- Financial Benefits of Leasing
- Comparing Leases
- Leasing Terms
- Frequently Asked Questions
Agricultural Export Financing
CoBank finances the export and pre-export of agricultural commodities, supplies or products, as well as the export of U.S. agricultural-related equipment. CoBank provides import financing for our agricultural cooperative customer-owners and for other Farm Credit System institutions and their customers. CoBank also serves agricultural cooperative customers involved in joint ventures and partnerships with non-cooperatives in the U.S. and overseas. Our documentary services include commercial and standby letters of credit and documentary collections. CoBank is an experienced lender under the export credit guarantee programs of the U.S. Department of Agriculture and the U.S. Export Import Bank. CoBank offers its own proprietary web-based electronic trade tool, CoTrade, to streamline letter of credit and collection operations.
CoBank employs an experienced group of capital markets professionals who can assist customers with large financing requirements. The bank’s extensive network of relationships with other Farm Credit banks and associations as well as commercial and investment banks, finance companies, institutional loan funds and other financial institutions provides our borrowers with substantial lending capacity. The bank is well known throughout the industry as a syndicator of high-quality loan transactions.
Loan syndication enables your company to tap a broad segment of the capital markets to efficiently fund large borrowing needs. CoBank can act as agent to arrange loans with a variety of institutional investors including commercial banks, finance companies, insurance companies, institutional loan funds and Farm Credit System lenders. These loans can be used for acquisitions, capital expenditures, growth capital, project financing and working capital needs.
If your company is looking for new ways to raise debt or equity capital, private placements may interest you. Seeking equity or debt from private investors, rather than from the more costly public markets, can help your company achieve its financial goals. We offer private placements through a partnership with SPP Capital Partners, LLC, an investment bank that specializes in taking growing companies to private investors.
Through our alliance with W.R. Taylor, CoBank offers tax-exempt bond financing for facilities and equipment related to industrial development, agricultural by-products and environmentally related capital expenditures. These bonds offer advantages to the investor and substantially lower interest rates to the borrower when financing qualifying equipment.
Certain assets can be separated from your balance sheet and used as collateral for the issuance of debt. Securitization often provides substantial funding cost savings when the credit quality of the asset pool to be securitized is superior to the credit quality of the corporate entity.
Cash Management and Online Banking
Our online banking platform, CoLink, is designed to help you better manage your business, saving you time and money. Through CoLink, you can quickly and easily view loan and investment balances, initiate transactions, and access Cash Manager.
CoBank's Cash Manager expedites the cash management process and maximizes the use of idle cash… saving you both time and money. Designed with your time and money in mind, Cash Manager offers you services that concentrate on settlement, disbursement and collection. Learn more about Cash Manager here.
For more information on Cash Management services, call 1 (855) 245-2988 or email email@example.com.
Public Private Partnerships
CoBank is deeply committed to fulfilling our mission to serve vital industries throughout rural America. One of the many approaches CoBank utilizes to better serve the needs of rural businesses and rural residents is the creation of public-private partnerships. Through public-private partnerships, private businesses and government agencies can create operational capacity and financial value while the combined knowledge, skills and expertise can lead to innovative solutions for the critical challenges of community facility, water/waste water, energy, communication and agribusiness projects across the United States.
CoBank can complement existing government loan and grant programs by serving as a co-lender or by making debt investments in a wide range of projects capable of meeting market terms, in addition to working with other sources of private capital to facilitate a successful financing.
A strong U.S. economy is contingent upon a strong rural economy – and yet investment capital is far less available in rural areas than in urban ones. Providing rural entrepreneurs and businesses with access to capital is critical to economic development and job creation.
An important public-private partnership is the USDA Rural Business Investment Program, which licenses rural business investment companies (RBICs) that invest junior capital into rural-based businesses with the goal of creating jobs and wealth in rural communities. An RBIC works like a private equity fund: a fund manager raises money from a group of investors and then invests that money in a variety of private businesses. While a RBIC is supported by the USDA, no taxpayer funds are at risk.
For information about CoBank’s investments as a limited partner in RBICs and other rural-focused equity funds, please click the links below.