The Bank Enterprise Award (BEA) Program has been modified to increase incentives for lending to consumers in distressed communities. The Treasury Department’s Community Development Financial Institutions Fund was concerned that lenders had been "disproportionately incentivized to engage in commercial lending activities" because the larger average size of commercial transactions made applicants potentially eligible for larger awards (81 Federal Register 52741).
An interim rule creates two subcategories within the distressed community financing activities category in order to differentiate between consumer loans and commercial loans, and investments. The amendment addresses concerns that a disaggregated method of reporting does not provide an accurate reflection of an increase in lending to businesses and residents. The amendment requires applicants to aggregate baseline and assessment period amounts at the subcategory levels.
Comments must be submitted by Oct. 11, 2016.
MainStory: TopStory CommunityDevelopment Loans
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