We have a loan to a borrower who operates several health facilities, of which 82% of the patients are referred by the 11th Judicial Circuit Court of Florida,through the County Court Mental Health Program. The proceeds of the loan is to repay expenses incurred by the owners in repairs, such as the air conditiong system, rooms have been modified, patient recreation area has been expanded, new laundry, dedicine, storage, dining and television rooms have been built and new equipment purchased. Would this loan qualify under CD? The facilities are in a moderate census tract.

Internet connection slow and by mistake I sent the post twice.

Is the borrower a non profit organization?

No.

Then I would say if the loan is under a million that you would have to count it as a small business loan. However, I would keep the documentation supporting the income info handy to show the examiners during the exam. You could get extra credit for it.

The loan is for $2,400,000 I will go ahead and keep it for our next evaluation which is due next year and hopefully will get some credit. Thank you for your input.

Since it is over a million you can count it as CD. You need to back it up with info on the income of the people that use the facility.

FWIW, I agree with KC...I'd try to get CD credit for it. Sounds like it's a shoe-in. Just make sure you have all the right documentation.

Gosh Riz, you make me feel so special.

LOL! I know you've just been waiting on me to agree with you