Credit Unions Are Leading The Way In USDA Lending
A $112 million loan financed through a consortium of credit unions shines a light on the
impact of the cooperative model in rural America.
Top-Level Takeaways
How did this happen? Through the power of collaboration.
When Co-Opportunity Knocks, Answer
Jeremy Gilpin is the executive vice president of Greater Commercial Lending, the
wholly owned CUSO of Greater Nevada Credit Union that is servicing the loan as
part of the lending consortium. Gilpin also chairs the National Rural Lenders
Association, which works directly with USDA national directors as well as political
leaders to ensure financing options remain available to rural communities. He says
the biorefinery project and other USDA loan opportunities have come to his
attention organically as he’s advocated over the past 20 years for USDA programs.
“The Section 9003 Programhas always interested me as there are a lot of good
projects out there, but there’s never really been a decent structure to finance
A New Structure
“We removed greed from the picture when credit unions got involved,” Gilpin says.
In Search Of The Right Credit Unions
Bill Mullally, senior managing director of CU CMS, read the article and reached out
to Gilpin to learn more. And a new partnership began.
“My role is simple,” Mullally says. “I find credit unions who are looking to increase
their member business loans through participations.”
CU CMS does other types of commercial loan participations, but it relies on Gilpin’s
expertise and solid reputation for USDA guaranteed loans.
To find credit unions that are fit for USDA lending, Mullally and his team focus on
credit unions that take a holistic approach to their business relationships.
“Credit unions that have a business services or commercial services department
are more amenable to participations — whether those are USDA, SBA, or
commercial real estate,” Mullally says.
“A lot of bright, experienced people are running business
service areas for credit unions,” Mullally says. “Many started in
banking and have moved into the cooperative industry.”
Once CU CMS finds a potential credit union participant, it
introduces the credit union to Gilpin and Greater Commercial
“We seek credit unions who are explicitly interested in
participating in USDA loans, so a consortium is ready for a big
opportunity like the Ryze loan,” Mullally says.
CU CMS stays with the consortium throughout the loan
process, answering common questions and filtering complex questions through Gilpin’s team.
“These are loans that might not get done without credit union
involvement because of the rural areas they are in,” Mullally
says. “The collaborative nature of credit unions is a key
differentiator and has allowed the Section 9003 Program to
Part Of The Equation
“Jeremy made life easy for us,” Mark Rosa, CEO of Jefferson
We removed greed from the picture when credit unions got involved. - Jeremy Gilpin, EVP, Greater Commercial Lending
Collaboration + Collaboration = More Collaboration
The Ryze loan required 15 months and a lot of coordination.
And Gilpin knows of what he speaks.
Time To Participate?
USDA lending experts offer advice on wading into the pool of USDA commercial lending.