A $300,000 Line of Credit is given to a research company based on the repayment ability of 3 guarantors whose combined personal incomes are $1,465,000. This loan is reportable under Call Report guidelines, but what do I use for Revenue on CRA Small Business reporting. The company has two years of tax returns stating $27,000 and $186,000 in gross revenues respectively. The lender is not looking to the company for repayment.

Based on the Q&A, you would NOT include the INCOME of the guarantors that are the individual principals. You only include the REVENUE of any parent company or affiliate that is providing a guaranty.

I would say you would report the revenue of the business as of the most recent fiscal year-end.

As Bonnie mentioned, you NEVER include income, nor do you EVER add either incomes or revenues to determine an answer to the Revenue question in CRA nor the Income question in HMDA.

In this case while the income is the likely repayment source, the loan was actually to a small business (as evidenced by the tax returns) and should be reported as a small business (revenues below one million) loan.

If you didn't have those tax returns in the file and relied purely on the income, you could discuss a revenue code of 3. It's in your best interest to have as few 3's as possible in the file and since you obviously have revenue information, you shouldn't lean towards a 3, but choose the 1 instead.