When is a small business loan not a loan to a small business?
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."
Community Reinvestment Act (CRA)