§__.42(a) CRA Data Collection on Non-Domestic Loans
§__.42(a) – 8 Q: When collecting small business and small farm data on CRA purposes, may an institution collect and report information about loans to small businesses and small farms located outside the United States? A8. At an institution’s option, it may collect data about small business and small farm loans located outside the United States; however,…
§__.42(a) CRA Data Reporting When No Loans Were Originated
§__.42(a) – 9 Q: Is an institution that has no small farm or small business loans required to report under CRA? A9. Each institution subject to data reporting requirements must, at a minimum, submit a transmittal sheet, definition of its assessment area(s), and a record of its community development loans. If the institution does not have community…
§__.42(a) CRA Data Reporting for P.O. Boxes and Rural Routes
§__.42(a) – 10 Q: How should an institution collect and report the location of a loan made to a small business or farm if the borrower provides an address that consists of a post office box number or a rural route and box number? A10. Prudent banking practices and Bank Secrecy Act regulations dictate that institutions know…
§__.42(a)(2) Reportable Loan Amount at Loan Purchase
§__.42(a)(2) – 1 Q: When an institution purchases a small business or small farm loan, in whole or in part, which amount should the institution collect and report – the original amount of the loan or the amount of the purchase? A1. When collecting and reporting information on purchased small business and small farm loans, including loan…
§__.42(a)(2) CRA Data Collection for Multiple Loans to Same Small Business
§__.42(a)(2) – 2 Q: How should an institution collect data about multiple loan originations to the same business? A2. If an institution makes multiple originations to the same business, the loans should be collected and reported as separate originations rather than combined and reported as they are on the Call Report, which reflects loans outstanding, rather than…
§__.42(a)(2) CRA Data Collection for Small Business Credit Cards
§__.42(a)(2) – 3 Q: How should an institution collect data pertaining to credit cards issued to small businesses? A3. If an institution agrees to issue credit cards to a business’s employees, all of the credit card lines opened on a particular date for that single business should be reported as one small business loan origination rather than…
§__.42(a)(3) Reportable Loan Location
§__.42(a)(3) – 1 Q: Which location should an institution record if a small business loan’s proceeds are used in a variety of locations? A1. The institution should record the loan location by either the location of the small business borrower’s headquarters or the location where the greatest portion of the proceeds are applied, as indicated by the…
§__.42(a)(4) Determination of Small Business Gross Annual Revenues Indicator
§__.42(a)(4) – 1 Q: When indicating whether a small business borrower had gross annual revenues of $1 million or less, upon what revenues should an institution rely? A1. Generally, an institution should rely on the revenues that it considered in making its credit decision. For example, in the case of affiliated businesses, such as a parent corporation…
§__.42(a)(4) CRA Data Collection of Small Business Gross Annual Revenues
§__.42(a)(4) – 2 Q: If an institution that is not exempt from data collection and reporting does not request or consider revenue information to make the credit decision regarding a small business or small farm loan, must the institution collect revenue information in connection with that loan? A2. No. In those instances, the institution should enter the…
§__.42(a)(4) Gross Annual Revenue Determination for Small Business Start-up
§__.42(a)(4) – 3 Q: What gross revenue should an institution use in determine the gross annual revenue of a start-up business? A3. The institution should use the actual gross annual revenue to date (including $0 if the new business has had no revenue to date). Although a start-up business will provide the institution with pro forma projected revenue…