I looked back to see some threads on this but it's been a while since those were commented on so I'm bringing it up again.

When you have a start-up with no revenue history do you code as a 1 or a 3? At some point I was trained that a start-up has unknown revenue so you code as a 3. Others say it has $0 in revenue so you code as a 1 for under $1MM.

To me it's not a zero...it's truly unknown. They could be launching the next "pet rock" (dating myself) and end up with $2MM in sales the first year, and since we don't know we don't know.

I asked our internal data-queen why she reports is as a 3 and she said she was given guidance by the FDIC to do it this way. BUT, she can not remember when or provide documentation. She's been at this 23 years so who knows.

I did see someone post back in 2016 they were told by the FDIC to report as a 3.

Question: any other FDIC large banks been told to report revenue for a stat-up as a 3?

ll.42(a)(4)—3: What gross revenue should an institution use in determining the gross annual revenue of a start-up business?

A3. The institution should use the actual gross annual revenue to date (including $0 if the new business has had no revenue to date). Although a start-up business will provide the institution with pro forma projected revenue figures, these figures may not accurately reflect actual gross revenue.

https://www.govinfo.gov/content/pkg/FR-2016-07-25/pdf/2016-16693.pdf

Right on Rich!