CRA Credit

Posted By: Baker

CRA Credit - 03/14/13 06:05 PM

The bank is looking into financing loans to businesses that qualify for Urban Renewal Agency Program grant funds. The way it works is that any business in designated area can receive grant funds to apply toward the total project cost (with max) to rehabilitate and improve their existing commercial building that is not in compliance with building codes and land use regulations and / or is in need of upgrading and repair.

There does not appear to be any specific income requirements to obtain grant funds other than location. However there are no low income or moderate tracts(this specific area appears to be middle) and it is not a designated disaster or underserved tract.

I see that Community Development includes in its definition loans that benefit low, moderate and middle income individuals and geographies. Is it safe to assume middle is simply not enough? The loans would benefit the community but in this case I am not sure they benefit the target community needed to qualify for CRA.