Examples of Qualified Small Business Lending in a sentence
The amount of Qualified Small Business Lending, including the exclusions listed above, shall be calculated and reported on the Investment Date by the Issuer in a format specified by Treasury (the “Initial Supplemental Report”) and during the first nine calendar quartersthereafter (each, a “Quarterly Supplemental Report”), concurrent with the Issuer’s publication of its call report.
In calculating such Qualified Small Business Lending, if any gains in Qualified Small Business Lending resulted from mergers and acquisitions, or purchases of loans during any quarter during such four quarter period, the Issuer shall recalculate Qualified Small Business Lending for all earlier quarters in such four quarter period to include such gains on a pro forma combined basis.
Limitation on rate reductions:The reduction in the dividend rate will not apply to a dollar amount of the investment that is greater than the dollar amount of the increase in Qualified Small Business Lending since the Baseline.
The dividend rate will be adjusted to reflect the amount of an Issuer’s change in Qualified Small Business Lending from the Baseline, as reflected in the table above.
If, at the beginning of the tenth full calendar quarter after the Investment Date, the Issuer’s most recent Quarterly Supplemental Report shows that the amount of Qualified Small Business Lending has not increased relative to the Baseline, the dividend rate will increase to 7% per annum until the four-and-one-half-year period that started on the Investment Date expires.
The average of Qualified Small Business Lending reported for these four quarters shall be the baseline against which subsequent lending is measured (the “Baseline”).
Dividends on any amount that is in excess of the increase in the amount of Qualified Small Business Lending will be payable at a rate of 5% per annum until the expiration of the four-and-one-half-year period that begins on the Investment Date, and 9% per annum thereafter.
Your institution will pay dividends on the funding at rates that will go down if the amount of its Qualified Small Business Lending goes up.
For eligible institutions that are savings and loan associations, the Thrift Financial Report (which uses different labels for categories of loans reported) should be used in cases where this document references a Call Report.If your institution is a holding company, its Qualified Small Business Lending consists of the combined Qualified Small Business Lending of all of its insured depository institution subsidiaries.
Whether it is less will depend on whether your institution has achieved a sufficient increase (from its baseline) in Qualified Small Business Lending as reflected in the Initial Supplemental Report which, in turn, is derived from the Call Report that is published in the calendar quarter before your institution receives funding.