Well, it goes like this:

The Fred Flinstone Trust is getting a loan to purchase a building.

Bedrock Inc., owned by Fred Flinstone, will be leasing the building from the trust.

I'm thinking that revenue should be 0 because this is a start up?

My wonderful lenders are trying to mark this as a 3 but I don't buy it because all the financial information from both Fred Flintone and Bedrock Inc have been analyzed.

Second opinion please?

I have been told by Examiners that Trusts have income, not revenues, and since the trust is the entity being extended the loan, that the Rev Code should be a "3".

I am curious to hear what others say....

Yes, well that is another whole worn out debate.

That seems to make sense, along with an individual does not have revenues either. But, that argument is not going to work for me.

Sorry to sound crabby about it, this week is just getting me down....

I understand completely, trust me!

Anyone, anyone, Bueller, Bueller.....

Did they review the financials as payment of the loan or as a leasee of the building? If the reviewed the financials of the business then for payment of the loan you will need to go with the GAR for the business.

Generally, an institution should rely
on the revenues that it considered in
making its credit decision when
indicating whether a small-business
or small-farm borrower had gross
annual revenues of $1 million or less.
For example, in the case of affiliated
businesses, such as a parent
corporation and its subsidiary, if the
institution considered the revenues
of the entity’s parent or a subsidiary
corporation of the parent as well,
then the institution would aggregate
the revenues of both corporations to
determine whether the revenues are
$1 million or less

My examiner told me ONLY count their revenues if they are legally related (affiliate) entities.

Maybe that's why I love this job so much!!