#14: Community Development Loan Mining Strategies You Don’t Want to Miss

When looking through your loan portfolio for qualified community development loans, it is essential to have a strategic approach given limited time and resources to conduct a 100% review. A tactical approach can save you time and help you qualify more loans to support your bank’s lending performance.Start with these subsets of community development loan prospects to yield an efficient review:• Loans to nonprofit organizations of any dollar amount• Small Business Administration (SBA) 504 loans• Renewals and major modifications• Loan officer/system identified loans• LMI areas/redevelopment districtsStart with the largest loans and work your way down the list. Remember to pull data on business loans over $1 million, because loans for less than $1 million are generally small business loans (including PPP loans). Quotes• “When we can’t do a 100% review...you can take a tactical approach, and this will save you time and, if done methodically, you can actually increase your portfolio of community development loans. You can enhance your bank’s lending performance.” (1:37-1:57)• “Start with a subset of all of the loans that you’ve originated for a commercial purpose. And then you can create subsets and then pull down different segments of those loans to be strategic with your review.” (1:58-2:12)LinksCRA Today Website: https://cratoday.com/ To join the waitlist for our upcoming Community Development Loan Workshop: www.cratoday.com/waitlistTo sign up for our free course: https://hub.cratoday.com/freecourseFor more information on the CRA Hub, a membership for bankers to connect, inspire, and master the art of CRA: https://cratoday.com/hub/ Copyright © 2021 by CRA Today LLC(No claim to original U.S. government material)All rights reserved. No part of this podcast may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.This podcast is a periodic publication of CRA Today LLC and is intended to notify and inspire recipients of new developments in the Community Reinvestment Act. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.