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#2302196 - 10/02/24 06:25 PM CD loan amounts
Brianna Offline
Member
Joined: Apr 2023
Posts: 55
Can someone please point me to where I can find the CD loan amount thresholds?

I am trying to figure out if I am looking at the right filters to determine if a loan could qualify as community development as far as loan size.

I was thinking for economic development - small businesses it would be loans >= to $1MM & for small farms >= $500K.
I'd like to verify that and also verify if loan size matters for the other community development categories or not.

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#2302252 - 10/04/24 12:37 PM Re: CD loan amounts Brianna
Inherent_Risk Offline
Platinum Poster
Joined: Jan 2017
Posts: 642
Loan amount doesn't directly relate to CD loan qualification, but if it is reported for HMDA or CRA small business or small farm, then it can't be counted again for CD credit (except for multifamily affordable housing). So, your amounts are correct as far as Small Business and Small Farm loans which would be reported elsewhere, but otherwise, loan amount would not be a factor outside of how much credit you can get. We have gotten credit for spec homes, leases, and other types of transactions in smaller amounts.

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#2302280 - 10/04/24 06:29 PM Re: CD loan amounts Brianna
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 2,128
Connecticut
There is one exception to what IR says. That is when you are an ISB you can claim credit for any loan that qualifies as both a small business loan and a CD loan. For examination purposes you can choose on a loan by loan basis (not all or nothing) which test you want each loan to be examined under. If you are an ISB and voluntarily report your annual CRA data you would report all such loans as small business loans, but you get the exception for examination purposes.
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