Is it true after an application is accepted we have 30 days to notify the customer if we accept it or denied it? I always thought with commercial the 30 days does not apply.

Yes it is true. Reg. B applies to commercial products as well as consumer.

On a commmercial credit, you have to notify the customer in a reasonable time. Reasonable is then defined as the same time frame for responding to a consumer, 30 days. Here's the actually gibberish from the commentary:

5. Timing of notification. A creditor subject to §1002.9(a)(3)(ii)(A) is required to notify a business credit applicant, orally or in writing, of action taken on an application within a reasonable time of receiving a completed application. Notice provided in accordance with the timing requirements of §1002.9(a)(1) is deemed reasonable in all instances.

Ok when does the 30 days start? In a lot of cases it takes longer to then 30 days to close a commercial loan. What do you do when it’s not ready to close and you are in the 30th of when the customer applied for commercial credit?

You don't have to close within 30 days, you have to notify them of approval (or denial) within 30 days.

We don’t take an application for commercial loans; the only 30 day factor would come when the loan is approved in our committee. It can take up to 30 days to just collect the data required to complete a TSR on them, so it can be approved in committee.

Even if you don't have a written application, at some point you have a Reg. B application when you have all the information you normally require. Within 30 days of that date, whenever that is, you need to communicate approval or denial. Of course, you need to document all of this.

So that I can agree with and for us we take it to committee as soon as we have all the information and thus giving us 30 days from that point.

You may not take a written app...but a loan officer has it scribbled on toilet paper or in his head somewhere..that starts your clock.

However, I agree...it's like the secondary market where, at least once upon a time, it could easily take 60 days to get the loan approved and ready to close.

I believe your 'out' here, is "completed" application. If you are still gathering the data to present the loan for approval, the loan is in process/not complete. I've never seen anything written up for this, so long as the loan is actively being worked.

An application is taken when the customer comes to the bank and says "I would like to borrow $xxxx to purchase/do xxxxx" and the bank writes up an approval memo. The bank has to decide when it has an application from the customer: could be when financials are received and sent to credit for analysis, could be when term sheet is accepted and application fee paid, could be as soon as they ask because you already have all current financial information on file.

How quickly you must respond varies with the revenues of the customer. You should review Notifications in Regulation B. (a)(1) and (a)(2) referenced relate to timing of notice (a)(1) and content of notice (a)(2):

(3) Notification to business credit applicants. For business credit, a creditor shall comply with the notification requirements of this section in the following manner:

(i) With regard to a business that had gross revenues of $1 million or less in its preceding fiscal year (other than an extension of trade credit, credit incident to a factoring agreement, or other similar types of business credit), a creditor shall comply with paragraphs (a)(1) and (2) of this section, except that:

(A) The statement of the action taken may be given orally or in writing, when adverse action is taken;

(B) Disclosure of an applicant's right to a statement of reasons may be given at the time of application, instead of when adverse action is taken, provided the disclosure contains the information required by paragraph (a)(2)(ii) of this section and the ECOA notice specified in paragraph (b)(1) of this section;

(C) For an application made entirely by telephone, a creditor satisfies the requirements of paragraph (a)(3)(i) of this section by an oral statement of the action taken and of the applicant's right to a statement of reasons for adverse action.

(ii) With regard to a business that had gross revenues in excess of $1 million in its preceding fiscal year or an extension of trade credit, credit incident to a factoring agreement, or other similar types of business credit, a creditor shall:

(A) Notify the applicant, within a reasonable time, orally or in writing, of the action taken; and

(B) Provide a written statement of the reasons for adverse action and the ECOA notice specified in paragraph (b)(1) of this section if the applicant makes a written request for the reasons within 60 days of the creditor's notification.