Posted By: Mona_San
Community Development loans - 09/16/19 05:00 PM
I am looking at the OCC fact sheet on community developments issued in January 2019. I have a couple of questions on the purposes of community development loans as follows:
1. One of the purposes of CD is stated as “promote economic development by financing businesses or farms that have gross annual revenues of $1 million or less or that meet the size eligibility requirements of the U.S. Small Business Administration’s (SBA) ….†Does this mean that any loan to a business that has gross annual revenues of $1 million of less can be considered a CD loan (even if it is not in a LMI)? Also, does this mean that, any loan to a business that meets the size eligibility requirements of the SBA can be considered a CD loan (even if it is not in a LMI)?
2. Another purpose of the CD is to “support affordable housing for low- or moderate-income (LMI) individuals, including multifamily rental housingâ€. Do you know what is affordable housing? Is there a regulatory definition of what is affordable housing?
Can anyone help me out?
1. One of the purposes of CD is stated as “promote economic development by financing businesses or farms that have gross annual revenues of $1 million or less or that meet the size eligibility requirements of the U.S. Small Business Administration’s (SBA) ….†Does this mean that any loan to a business that has gross annual revenues of $1 million of less can be considered a CD loan (even if it is not in a LMI)? Also, does this mean that, any loan to a business that meets the size eligibility requirements of the SBA can be considered a CD loan (even if it is not in a LMI)?
2. Another purpose of the CD is to “support affordable housing for low- or moderate-income (LMI) individuals, including multifamily rental housingâ€. Do you know what is affordable housing? Is there a regulatory definition of what is affordable housing?
Can anyone help me out?