Interagency Q&A .42(a)(4) – 3: What gross revenue should an institution use in determining the gross annual revenue of a start-up business?

Compliance > Regulation BB - CRA
Q:  § __.42(a)(4) – 3: What gross revenue should an institution use in determining the gross annual revenue of a start-up business?
 
A:  The institution should use the actual gross annual revenue to date (including $0 if the new business has had no revenue to date).  Although a start-up business will provide the institution with pro forma projected revenue figures, these figures may not accurately reflect actual gross revenue and, therefore, should not be used.
 
 
 
This Interagency Q&A, and others, was released in July 2016.  The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately.  They may be found here:  http://www.ffiec.gov/cra/qnadoc.htm
 
 

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