Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, August 10, 2016

Bank Enterprise Award Program changed to stimulate consumer loans

By Andrew A. Turner, J.D.

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

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.