Logout / Access Other products Drop Down Arrow
Get live help Monday-Friday from 7AM-7PM ET (12PM-12PM GMT)  •  Contact Us
Check out our new FAQ section!
RSS Feed
TitleFAQ: U.S. - When is a small business loan not a loan to a small business?
AuthorKarl Zandi
Question

When is a small business loan not a loan to a small business?

Answer

The Community Reinvestment Act (CRA) defines the following:

  • Small business: One with annual revenues of $1 million or less.
  • Small business loan: A commercial or industrial (C&I) loan of $1 million or less extended to a business of any size.

Hence, a "small business loan" may be a small loan to a large firm.  This distinction can be important to policy-makers seeking to preserve or create credit opportunities for small firms.  CRA reporters must indicate separately the number (#) and dollar volume ($) of small business loans made to small businesses, hence their proportion can be computed.

In the Data Buffet catalog, look for "gross annual revenues less than $1 million."



Related Releases
Community Reinvestment Act (CRA)