In this episode, we’re taking a deeper dive into the economic development hook, which is often an overlooked aspect of community development loans. However, it plays a crucial role in strengthening local economies. Here, you’ll learn how to identify community development loans that were originated for small businesses to support your community development loan portfolio.

Remember, when qualifying for a CD loan under the economic development hook, you’ll need to meet the size and purpose test. The criteria to meet the test are:

Credit write ups don’t usually include salaries or job information, CRA professionals will have to make a few reasonable assumptions and document their approach for an examiner’s review.  The interagency Q&A has guidelines to help frame your approach. This episode includes some examples of common small businesses that qualify under the economic development hook.You can reference the Bureau of Labor Statistics to document information on representative jobs and income levels based on the loan originated and its local demographics and economic statistics.

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