Can anyone please tell me the real definition of a community development loan or point me in the right direction. I have several small business loans that are located in a low-moderate area,, can these be reported as a CDL???

There is a four-part test you should go through to determine if your loan can be reported as a community development loan. You will find the definition of "community development" (and those four components) at 228.12(h) and the corresponding definition of "community development loan" at 228.12 (i). Read these definitions and commit them to memory. Also, read the corresponding Q & As to these sections thoroughly. It's not easy to give you a yes or no answer to your "low-income" question, but generally, NO, if a loan can be reported as a small-business loan (type 1), it can not be reported as a community development loan, regardless that it is in a low-income tract. You would find that caveat in the above-referenced section 228.12(i)(2)(i). There will be loans to businesses in low-income tracts that can be reported as community development loans, but not if they have to be reported as HMDA, small business, or small farm loans. The exception are multi-family loans which are the only types that can be reported as a HMDA loan and are eligible for CD reporting.

I just researched this exact same thing.

Search in CRA, Subject Line Only, "Community Development Lending", no time limits. There was a good post on 11/25/03 with a worksheet to help.

Sorry - I posted the link and it didn't work (again )

You can only report a loan as a Community Development Loan IF you cannot report it elsewhere as either Small Business or HMDA.

The notable exception is for multi-family loans where you can report on BOTH the HMDA LAR and as a Community Development Loan if the multi-family property provides housing for low- and moderate-income people.

If you feel your small business loans have exceptional merit for Community Development, you can always keep them in a separate report, or folder, or what-have-you, to show the examiners at your next CRA exam. They may give you credit for them, they may not. But it doesn't hurt to ask.

Two exams ago our FDIC CRA Examiner would not give us credit for community development projects outside of our trade area. At the last exam, the examiner asked if we could get credit for the project if it benefits our state. Please let me know your thoughts.

FDIC did something funky? Shocking

You are allowed to take CD credit for projects outside of your assessment area (trade area is not a CRA term) IF you have adequetly attempted or met the needs of your assessment area, and the project serves a greater regional or statewide area.

Your examiners should not ask you if the credit is acceptable, they should determine it themselves from the data you submit. You should submit all data for deals that serve your assessment area, as well as a greater regional or statewide area. You do need to show how you did meet or attempt to meet the needs within your area as well though, so as with most of the exam, this is a performance context issue.

Many of my deals are outside of my stated assessment area. Most of the deals that lead me to Outstanding are. I've served the needs of my AA very well, and found a need outside of my AA that no one else was meeting. For this reason, I take, and get approved, deals outside of my AA.