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Must banks make small business loans?

Question: 
Must every bank make small business or small farm loans?
Answer: 

The types of loans a bank offers differs by the banks strategic plan, capacity for lending, and market needs and competition. Not all banks offer smaller commercial loans. The bank’s strategic plan and performance context will address its lending products, and how those fit into the local market and whether credit needs in the local market are being addressed or left unmet. A bank not offering small business loans or offering only limited small business lending would present the loans it does make during its audits and examinations and provide evidence of how this is not detrimental to its assessment areas and how the lending that is conducted does meet the credit needs.
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Learn more about Kathleen Blanchard’s webinar CRA Success: Business and Ag Lending

First published on 11/17/2019

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