Do I have to be a 501(c)(3) to get support under the CRA?
The short answer is it depends. In most cases, if you are seeking a financial donation or grant from a bank, they will require that you have a 501(c)(3) or similar nonprofit designation. They may also ask for documentation to ensure that their contribution will be tax deductible. However, CRA is much more than financial…
How do I know if my organization qualifies for CRA support?
Nonprofit organizations are eligible for CRA support if they provide qualified community development services, loans or investment to either: Low- and moderate-income individuals Low- and moderate-income geographic areas Area specially designated as underserved, distressed or disaster Small businesses or farms If a nonprofit organization has a primary mission and/or programs that falls into one or more…
Does my nonprofit’s mission have to be CRA-qualified to get bank support?
A nonprofit does not have to qualify at a mission level to receive CRA support. While certain organizations have a mission that clearly meets the requirements of CRA, many organizations do not. If a nonprofit’s mission is not CRA-focused, it may still have programs or services that meet CRA requirements. For example, a nonprofit’s mission may…
What supporting documents will a bank need?
Each bank has it’s own requirements for what types of documents they’d like to see for a bank. The type of number of documents also varies depending on if a nonprofit is applying for a loan, completing a grant application or simply asking for volunteers from the bank. In general, the most common documents a…
How do I prove my program helps low-income people?
When a nonprofit is seeking CRA support from banks, the most common question will be if the nonprofit and/or its services and programs are focused on low- or moderate-income people or areas. Determining if a program or services meets these important criteria can be time-consuming and complex. Different federal agencies qualify low- and moderate-income in…
What happens during a CRA examination?
A bank’s CRA examination will be conducted by its federal regulatory agency which is assigned based on how the bank is chartered. This agency could be: The Office of the Comptroller of the Currency or OCC The Federal Deposit Insurance Corporation or FDIC The Federal Reserve Prior to examination, each regulator published a scheduled of…
Where can I find the CRA Rating for a bank?
CRA ratings are the only public bank examination rating. They are announced each month by the bank regulators. You can also search for any bank’s CRA rating on a special website published by the FFIEC. Search here.
How does a bank get an Outstanding CRA rating?
There is no magic formula to obtaining an Outstanding CRA rating. The FFIEC has published CRA examination procedures that are used by the Federal bank regulators to conduct CRA exams. The procedures are specific to the bank’s CRA size. During an examination, the CRA examiner will consider dozens of factors to determine a bank’s overall…
What happens if a bank gets a bad CRA rating?
Of the four ratings a bank can receive for their CRA performance, only the Needs to Improve and Substantial Non-Compliance are viewed as “bad” ratings. However, especially in the case of a Needs to Improve rating, just because the bank received a negative rating doesn’t mean that the bank is ignoring the community. In some…
What is peer lending data?
Peer lending data is accumulated each year by most banks and other lenders in the United States. The requirements for compiling and reporting peer lending data are outlined in federal regulations. The Home Mortgage Disclosure Act requires mortgage lenders to report all mortgage applications in a standardize format each year. The CRA requires banks to…