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#2280953 - 02/10/23 05:36 PM CRA Recapture Equity
Love Cruising Offline
Gold Star
Joined: Dec 2019
Posts: 250
For a CRA small business loan to capture equity, the use of the proceeds need to be related to the business? or we don't need to know where the funds will be used.

Appreciate if someone could answer.

Thank you,

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CRA
#2280961 - 02/10/23 08:20 PM Re: CRA Recapture Equity Love Cruising
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 930
USA
How do you geocode (required for submission) without knowing where the funds will be used?
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Opinions are strictly my own, and have nothing to do with my employer.

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#2280990 - 02/13/23 01:03 PM Re: CRA Recapture Equity Love Cruising
Love Cruising Offline
Gold Star
Joined: Dec 2019
Posts: 250
It's geocoded under C&I, however does a loan that the only purpose of the funds is to capture equity and no use of the funds will be put to use in the business should be reported?

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#2280995 - 02/13/23 01:44 PM Re: CRA Recapture Equity Love Cruising
Inherent_Risk Offline
Platinum Poster
Joined: Jan 2017
Posts: 574
If it's C&I on the call report and under $1 million, then you would report it. You would geocode based on the business' address.

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