Small Business Lending

For most small business loans, the primary source of repayment is the cash flow of the business. A bank’s cash flow analysis should cover current and expected cash flows, and reflect expectations for the borrower’s performance over a reasonable range of future conditions.

References

AL = Advisory Letter
BB = Banking Bulletin
EC = Examining Circular
OCC=Bulletin

Small Business Lending: Meeting the Credit Needs of Creditworthy Small Business Borrowers (OCC 2010-6, February 2010), Interagency Statement

Financing Minority Businesses (AL 2003-8, October 2003)
Covers how banks can satisfy the financing needs of minority business entrepreneurs while maintaining safe and sound banking practices

Access to Financing for Minority Small Businesses (AL 1998-9, July 1998)
Covers issues minority small business owners face in seeking access to financing and identifies effective approaches to meet their needs

Questions and Answers Regarding Documentation Policy (BB 1993-54, November 1993), Questions and Answers
Covers questions and answers related to documentation for loans to small and medium-sized businesses and farms

Interagency Policy on Small Business Loan Documentation (BB 1993-46, August 1993)
Covers bank and federal agency participation in the small business loan program

Questions and Answers Regarding Documentation Policy (BB 1993-23, April 1993), Questions and Answers
Covers the Interagency Policy on Small Business Loan Documentation issued April 2, 1993, under Banking Bulletin 93-18

strong>Interagency Policy on Small Business Loan Documentation (BB 1993-18, April 1993), Interagency Guidance
Covers the interagency policy statement on documentation for loans to small and medium-sized businesses and farms

Data Collection for Small Business Loan Documentation (EC 264, April 1993)
Covers a program to collect data on loans that banks identify for exemption from unnecessary documentation

Interagency Policy Statement on Credit Availability (BB 1993-12, March 1993), Interagency Statement
Addresses availability of credit, especially for small and medium-sized businesses