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#2149959 - 10/16/17 06:51 PM CRA credit for helping after Hurricane Harvey
txgal, CRCM Offline
Junior Member
Joined: Jul 2006
Posts: 44
Texas
We just experienced Hurricane Harvey in our AA and we now are offering low rate loans to the small businesses who were affected by the storm. Just want to clarify that we can report these as Community Development even if they are less than $1 million as long as we don't report them as CRA small business too.

What about low rate loans to individuals who lost cars, home repair, etc. in declared FEMA designated disaster areas?

Thank you!

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#2149984 - 10/16/17 08:19 PM Re: CRA credit for helping after Hurricane Harvey txgal, CRCM
Tennismom Offline
Platinum Poster
Tennismom
Joined: Jan 2004
Posts: 764
The classification of small business loan should not change for CRA Small Business Reporting even if the proceeds are to be used for assistance during a disaster.

Look at it this way, if a loan is not CRA Small Business/Farm reportable (due to dollar amount being >$1,000,000) then review the loan in the disaster area as you would a loan in a low or moderate income or middle-income distressed census tract documenting how is stabilizes the geography. The activity could occur in an upper income census tract but if funding goes to improve the infrastructure of a disaster area then it should count as a CDL.

Separately track information about the loan of which concessions were made in interest rates and present to the regulator during your next CRA Exam. I look at this as a community development service and the examiners may make special mention of this activity in your CRA PE.

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#2150105 - 10/17/17 04:48 PM Re: CRA credit for helping after Hurricane Harvey txgal, CRCM
txgal, CRCM Offline
Junior Member
Joined: Jul 2006
Posts: 44
Texas
Thank you! I was forgetting about the size test and only concentrating on the purpose test. We are an ISB so it is more difficult for us to make CD loans over $1 million. Not impossible just difficult.

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#2150111 - 10/17/17 04:53 PM Re: CRA credit for helping after Hurricane Harvey txgal, CRCM
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 764
I am unfamiliar with the ISB Requirements. My post was based on activity of a Large Bank.

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#2150122 - 10/17/17 05:31 PM Re: CRA credit for helping after Hurricane Harvey txgal, CRCM
txgal, CRCM Offline
Junior Member
Joined: Jul 2006
Posts: 44
Texas
I verified and they are the same.

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