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#1863337 - 10/21/13 07:55 PM Reg B gross annual revenue calculation
bisco Offline
Junior Member
Joined: Jul 2012
Posts: 27
Reg. B states that the bank must provide the client with a credit decision within 30 days from the Completed Application Date for clients with gross annual revenue of $1,000,000 or less or within a "reasonable period" for clients with gross annual revenue greater than $1,000,000.

In the Commercial world, do you strictly pull the gross annual revenue figure from the Primary Borrower? What if you have a situation where the Primary Borrower is say a Real Estate Holding Company and one of the guarantors is a related company and their cash flow was the main one looked at. Would you still only use the RE Holding Company's revenue?

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Lending Compliance
#1863346 - 10/21/13 08:06 PM Re: Reg B gross annual revenue calculation bisco
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Paragraph 9(a)(3).

1. Coverage. In determining which rules in this paragraph apply to a given business credit application, a creditor may rely on the applicant's assertion about the revenue size of the business.

A guarantor is not an applicant.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1863355 - 10/21/13 08:15 PM Re: Reg B gross annual revenue calculation bisco
bisco Offline
Junior Member
Joined: Jul 2012
Posts: 27
Thanks Carey....needed some reassertion

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