First Southwest Bank and the $30 Million Colorado Ag Future Loan Program

The headline pairs a bank with a dollar figure for a state loan program. As reported, that is a headline claim, so here is how to check it and what to ask a participating lender.

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What the headline claims and how to verify it

The title names a specific bank and a funding amount for the Ag Future Loan Program. We treat those as reported details. Confirm the lender's role, the funding total and the program terms at official pages, starting with the Colorado Department of Agriculture, and ask the bank directly. Funding totals can change as money is used or added.

This site is independent and has no affiliation with the bank, the state or the program. We do not recommend any lender. We explain how to compare them.

Be aware that funds announced for a program may be committed in stages and may not all be available at once. Ask how much remains, and whether the bank has an allocation.

Why a participating bank matters

In many state-supported programs, borrowers apply through participating banks, which decide on credit and handle the loan. That means your relationship with the bank counts. A lender that knows ranch cash flow and drought cycles often reads an application with more understanding.

A program may list participating lenders, or the bank may announce participation. Ask any bank whether it takes part, how many loans it has made under the program and what its typical timeline is, without expecting a promise.

Another question: who decides? Sometimes the bank approves the loan, sometimes a state board reviews it too. That affects timing, so ask about each step and who owns it.

Is the bank a program participant?
What does it need beyond the basic application?
What is the decision timeline?
Who services the loan afterward?

How to compare banks fairly

Ask at least two or three lenders for written estimates. Include a local community bank, a credit union or Farm Credit association, and compare against FSA loan options. Look at rate type, fees, term, collateral, covenants, prepayment and servicing.

Check each bank's standing. The FDIC has a BankFind tool for institution information, and the Farm Credit Administration oversees Farm Credit lenders. These are consumer-protection basics worth a few minutes.

If you already bank with a lender, ask how an additional loan affects your existing line and collateral. Cross-collateral clauses can tie new debt to old assets in ways that surprise borrowers.

Covenants, collateral and the fine print

Participation in a program does not remove the bank's usual conditions. Expect a lien on assets, insurance requirements, financial reporting and possibly financial ratios you must maintain. Ask what happens if you miss a ratio in a drought year, and whether the lender can adjust the loan.

Read the promissory note and security agreement fully. If a clause is unclear, ask for it to be explained in writing, and consider showing it to an attorney. Farm money basics defines many of these terms.

Ask what happens if the lender sells the loan or the program ends. The note you sign governs, so read it for transfer and default terms.

Preparing a stronger application

Show the bank what it wants: a clear project, realistic projections, tax returns, a balance sheet and a way to repay. Describe your market and your plan for risks like drought or a price drop. Include quotes and permits.

Colorado producers from Greeley to the Western Slope face different seasons and markets, so tell your own story with specifics. CSU Extension can help refine budgets, and rural community resources may point to local partners.

Keep timelines in mind. Spring calving or fall shipping can leave little time for paperwork, so apply when you have breathing room.

If your bank is not participating

You can ask whether another lender takes part, or compare other loans. Moving banks has costs, so weigh the benefits. A long relationship with a local banker has value of its own.

Meanwhile, keep your records current. For a lighter read, see a farm.FM story about the small town bank, and for economics stories try farm.FM agribusiness coverage and ranching coverage. This is general education, not financial advice, and we do not make or arrange loans.

Sources and further reading

Colorado Department of Agriculture: state agriculture agency
Farm Credit: cooperative agricultural lending network
FSA Farm Loans: FSA direct, guaranteed, microloan and emergency loan information
FDIC: deposit insurance and bank information
Farm Credit Administration: regulator of the Farm Credit System
CSU Extension: Colorado State extension

Ask locally: Ask your banker whether they take part in state programs, and compare the answer with at least one other lender.

General education only, not financial, legal or tax advice, and Colorado Rancher Loan Guide is not a lender. Rates, terms and deadlines change, so confirm current details with the lender or agency.