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#57257 - 01/28/03 04:25 PM CRA Gross Revenues
BankerMama Offline
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Anyone have any ideas why an examiner doing a small bank CRA exam would need revenues on the businesses? I thought they went by loan size (under 1 million) for sampling.

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#57258 - 01/28/03 04:42 PM Re: CRA Gross Revenues
Pale Rider Offline
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The SBA defines small business lending in terms of the size of the loan (< $1million) as well as the number of employees at the business or the gross annual revenues of the business. We are a large bank and must go through these additional steps to get all the CRA credit we can for the lending test. But I am puzzled why a small bank would have to try to identify such information. My only guess is the examiner is trying to get you more lending credit for the CRA evaluation.
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#57259 - 01/28/03 05:09 PM Re: CRA Gross Revenues
BankerMama Offline
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I came here from a Large Bank so this is the first Small Bank CRA exam I have been through since CRA changed last.
Examiner is reviewing one of our banks that has been open only 1 year. He also asked me to review his sample and let him know any loans that are not "small business" as defined by CRA. CRA defines "small business loan" however, no definition of "small business".

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#57260 - 01/28/03 05:46 PM Re: CRA Gross Revenues
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Between the lines
Our last exam was small bank (OCC) and if you look at a sample PE; you will see that one of the tables in the report shows # Small Business Loans, #of Business Loans, and % of Small Business loans. Another table gives the same info. for farm loans. There are additional tables that breakdown the numbers by size of loan, etc.

While you may not be a CRA reporting bank, it is still a part of the evaluation. They prove whether the business is small or large by going back to the actual revenues of the business.

Hope this helps.
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