Small Business Lending Survey

Board of the Governors of the Federal Reserve System

Instructions for the Preparation of

Small Business Lending Survey
Reporting Form FR 2028D
Effective December 31, 2020July 2020

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FR 2028D

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FR 2028D

December 31September 30, 2020

INSTRUCTIONS FOR PREPARATION OF

Small Business Lending Survey
General Instructions
Purpose of the Survey
The Federal Reserve System uses data from this survey
on United States (U.S.) chartered commercial bank
nonfarm small business lending, including costs,
terms, standards, and reasons for their changes, to
assess and analyze developments in small business
credit markets. Aggregate information on small
business loans is pub- lished in a quarterly statistical
release on the Federal Reserve Bank of Kansas City’s
website and through a link on the Federal Reserve
Board’s website.

Survey Scope
This survey covers commercial and industrial (C&I)
loans made to U.S. nonfarm small businesses. The
sur- vey period covers the most recent calendar
quarter.
For the purpose of this survey, U.S. nonfarm small
businesses are those nonfarm businesses domiciled
in the U.S. with no more than $5 million in total
annual revenues.1 Domiciled U.S. businesses
encompass bor- rowers domiciled in the fifty states of
the U.S., the Dis- trict of Columbia, or U.S. territories
and possessions, including U.S. offices or
subsidiaries of non-U.S. (for- eign) businesses. For
further detail, please refer to Glossary entry for
“domicile” in the Instructions for the quarterly
condition report (FFIEC 031 & 041,
https://www.ffiec.gov/ffiec_report_forms.htm).
The definition of C&I loans corresponds to that used
for Item 4 of Schedule RC-C, Part I, of the quarterly
condition report (FFIEC 031, 041, & 051). For
FFIEC 031, 041, and 051 reporters, C&I loans to
U.S. small businesses are included in Item 4.a of
Sched- ule RC-C, Part I excluding items noted
below. For FFIEC 051 reporters, C&I loans to U.S.
small businesses in U.S. domiciled addresses
included in item 4 of RC-C, Part I excluding items
noted below For banks with foreign offices (FFIEC
031 reporters), include all such loans that are booked
at U.S. (domes-

tic) offices of the reporting bank (Column B of the
FFIEC 031).

Include:
• Overnight loans.
• Construction and land development loans that
are not secured by real estate.
• Credit card loans

Exclude:
• Loans denominated in non-U.S. currencies.
• Loans made by an international division,
interna- tional operations subsidiary, or Edge or
Agreement subsidiary of your institution.
• Loans made to non-U.S. addressees (business
firms domiciled outside of the fifty states of the
United States, the District of Columbia, or U.S.
territories and possessions).
• Loans secured by real estate, even if for
commercial and industrial purposes.
• Intercompany loans.
• Loans to financial institutions.
• Loans resulting from unplanned
overdrafts to deposit accounts.
• Loans held for trading purposes.

Preparation of Survey
The survey will be submitted quarterly using the
Fed- eral Reserve Bank of New York’s Statistics
Survey Application. . The transmission period
would begin two weeks prior to the first business
day of the second month of each quarter (February,
May, August and November) and conclude 14 28
calendar days later. Data provided on the survey
would be based on loan activity over the previous
quarter. All dollar amounts should be reported in
thousands.

For additional information, please see FAQs on page
9.

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Commercial banks that do not track small business lending based on annual revenue may utilize their internal criteria to
define small business lending for purposes of responding to survey items. For example, some small commercial banks may
consider all of their lending small business lending.

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INSTRUCTIONS FOR PREPARATION OF

Small Business Lending Survey

1

Commercial banks that do not track small business lending based on annual revenue may utilize their internal criteria to
define small business lending for purposes of responding to survey items. For example, some small commercial banks may
consider all of their lending small business lending.

Line Item Instructions

Line Item Instructions
1. Check “no” if your institution does not use more
than one base rate for C&I loans to U.S. small businesses. If “no” is checked, complete question 2.
Check “yes” if your institution uses more than
one base rate for C&I loans to U.S. small
businesses. If “yes” is checked, complete question
3.
2. Enter the base rate your institution uses (i.e., prime
rate, LiborLIBOR/SOFR, Federal Home Loan Bank
rate, U.S. Treasury rate, Proprietary rate, SOFR, Other
rate).
3. Indicate the three most commonly used base rates,
ranked by the total dollar value of outstanding loans
to small businesses based on each base rate as of the
end of the most recent calendar quarter.
Item 4 Outstanding term C&I loans to U.S. small
businesses broken out by fixed rate and variable rate
as of the last calendar day of the most recent
calendar quarter.
4a. Number. The total number of term loans.
4b. Outstanding dollar amount. The total face amount
of term loans in thousands of dollars even if held at
fair value.
4c. Weighted average interest rate. Sum the
outstanding face amount of each term loan multiplied
by its stated nominal rate of interest – not the
effective rate or Annual Percentage Rate (APR).
Divide the sum by the outstanding dollar amount
(column 4b.). Report the rate in percent to three
decimal places; for example, if the average interest
rate is 2¼ percent, enter “2.250.” See appendix for
example.
4d. Weighted average base rate. Sum the outstanding
face amount of each term loan priced with a base rate
multiplied by its base rate. Divide the sum by the total
outstanding face amount of loans priced with a base

rate. Report the rate in percent to three decimal
places; for example, if the average interest rate is 2¼
percent, enter “2.250.” See appendix for example.
4d. Weighted average maturity. 4d. Weighted
average maturity. Sum the outstanding face amount
of each term loan multiplied by its remaining maturity
(in months). Divide the sum by the outstanding dollar
amount (column 4b.). Report the weighted average
maturity in months to two decimal places; for example,
if the average maturity is 18½ months, enter “18.50.”
See appendix for example.
4e. Maximum maturity. Report the maximum
maturity in months.
4g. Number secured. The total number of term loans
secured by collateral of any kind.
4h. Dollar amount secured. The outstanding
face amount of term loans in thousands of dollars
secured by collateral of any kind.
4i. Number with U.S. Small Business
Administration (SBA) guarantees.1 The total
number of term loans with all or a portion of the
loan guaranteed by
the SBA.
4j. Dollar amount with SBA guarantees. The
outstand- ing face amount of term loans in
thousands of dollars, even if held at fair value, with
all or a portion of the loan guaranteed by the SBA.
4k. Number with other guarantees. The total number
of term loans with all or a portion of the loan
guaranteed by an entity other than the SBA.
4l. Dollar amount with other guarantees. The outstanding face amount of term loans in thousands of dollars,

1. For more information on SBA loan programs, see
https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loanprograms.

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Small Business Lending Survey
even if held at fair value, with all or a portion of the
loan guaranteed by an entity other than the SBA.
4f. Number with interest rate floor. The total number
of term loans that utilize interest rate floors in the
loan terms.

4g. Dollar amount with interest rate floor. The
outstanding face amount of term loans in thousands
of dollars, even if held at fair value, for term loans
that utilize interest rate floors in the loan terms.

borrower meet covenants in the contract and pay a fee
on the unused credit available. These include revolving
credits under which the borrower may draw and repay
loans for the duration of the contract.
A line of credit is defined as an informal arrangement
under which the lender agrees to lend within a set
credit limit and to quote a rate on demand for a takedown amount and maturity requested by the borrower.
These arrangements may not be legally binding.
Authorizations or internal guidance lines, where the

4n. Number at interest rate floor. The total number
of term loans for which the nominal rate of interest
equals the interest rate floor.
4o. Dollar amount at interest rate floor. The
outstand- ing face amount of term loans in
thousands of dollars, even if held at fair value, for
which the nominal rate of interest equals the interest
rate floor.
4h. Weighted average interest rate floor. Sum the
out- standing face amount of each term loan with an
inter- est rate floor multiplied by its floor. Divide the
sum by the total outstanding face amount of loans
with an interest rate floor (column 4g.). Report the
rate in percent to three decimal places; for example,
if the average interest rate is 2¼ percent, enter
“2.250.” See appendix for example.
Item 5 Outstanding C&I loans made under a
commitment (formal or informal) to U.S. small
businesses broken out by fixed rate and variable rate
as of the last calendar day of the most recent
calendar quarter.
Commitments are broadly defined to include all
prom- ises to lend that are expressly conveyed, orally
or in writing, to the borrower. Commitments
generally fall into two types of arrangements: formal
commitments and informal lines of credit.
Authorizations or internal guidance lines, where the
customer is not informed of the amount, are not to be
considered as commitments.
A formal commitment is a commitment for which a
bank has charged a fee or other consideration or
other- wise has a legally binding commitment. It is
usually evidenced by a binding contract, to lend a
specified amount, frequently at a predetermined
spread over a specific base rate. It requires that the
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customer is not informed of the amount, are not
to be considered as commitments.
5a. Number. The total number of commitments.
5b. Commitment dollar amount. The total face
amount of unused and used commitments in
thousands of dollars.
5c. Outstanding dollar amount. The total face
amount of used commitments in thousands of
dollars.
5d. Weighted average interest rate. Sum the face
amount of each used loan commitment multiplied
by its stated nominal rate of interest – not the
effective rate or APR. Divide the sum by the
outstanding dollar amount (column 5c.). Report
the rate in percent to three decimal places; for
example, if the average inter- est rate is 2¼
percent, enter “2.250.” See appendix for example.
5e. Weighted average base rate. Sum the
outstanding face amount of each used loan
commitment priced

with a base rate multiplied by its base rate. Divide
the sum by the total outstanding face amount of used
loan commitments priced with a base rate. Report the
rate in percent to three decimal places; for example,
if the average interest rate is 2¼ percent, enter
“2.250.” See appendix for example.
5f. Number secured. The total number of
commitments secured by collateral of any kind.
5g. Dollar amount secured. The total face amount of
unused and used commitments in thousands of
dollars secured by collateral of any kind.
5h. Number with SBA guarantees. The total number
of commitments with all or a portion of the loan
guaran- teed by the SBA.
5i. Dollar amount with SBA guarantees. The total
face amount of unused and used commitments in
thousands of dollars, even if held at fair value, with
either all or a portion of the loan guaranteed by the
SBA.
5j. Number with other guarantees. The total number
of commitments with all or a portion of the loan
guaran- teed by an entity other than the SBA.
5k. Dollar amount with other guarantees. The total face
amount of unused and used commitments in thousands
of dollars, even if held at fair value, with either all or a

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portion of the loan guaranteed by an entity other
than the SBA.

• Conversions of commitment into term loans.
Exclude:

5e. Number with interest rate floor. The total number
of commitments that utilize interest rate floors in the
loan terms.
5m. Number at interest rate floor. The total
number ofcommitments for which the nominal rate of
interest equals the interest rate floor.

• Loans purchased in the secondary loan market.
Purchased factored loans (that is,
purchased accounts receivable).
•

5n. Dollar amount at interest rate floor. The outstanding face amount of used commitments in thousands
of dollars for which the nominal rate of interest equals
the interest rate floor.
5f. Dollar amount with interest rate floor. The
outstanding face amount of used commitments in
thousands of dollars for loans that utilize interest rate
floors in the loan terms.
5g. Weighted average interest rate floor. Sum the outstanding face amount of each used loan commitment
with an interest rate floor multiplied by its floor.

Divide the sum by the total outstanding face
amount of used loan commitments with an interest
rate floor (column 5f..). Report the rate in percent to
three decimal places; for example, if the average
interest rate is 2¼ percent, enter “2.250.” See
appendix for example.
6a. Net drawdowns on C&I commitments (formal or
informal) broken out by fixed rate and variable rate to
U.S. small businesses during the most recent calendar
quarter. Enter the net face amount of loans drawn in
thousands of dollars.
Item 7 New term C&I loans broken out by fixed rate
and variable rate to U.S. small business made during the
most recent calendar quarter.
Enter the amount of loans in thousands of dollars.
Include all term C&I loans to U.S. small businesses
entered into your books or loan system during the most
recent calendar quarter, even if the loans were
approved or disbursed in the prior calendar quarter.
Exclude loans approved or disbursed but not entered
into your institution’s books or loan system during the
most recent calendar quarter.
Also include:
• Renewals of term loans.

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factored
loans (that is, purchased
Line
Item
Instructions
accounts receivable).

7a. Number. The total number of term loans.
7b. Outstanding dollar amount.The total face
amount of term loans in thousands of dollars even if
held at fair value.
7c. Weighted average interest rate. Sum the
outstanding face amount of each term loan multiplied
by its stated nominal rate of interest – not the effective
rate or APR. Divide the sum by the outstanding dollar
amount (col- umn 7b.). Report the rate in percent to
three decimal places; for example, if the average
interest rate is
2¼ percent, enter “2.250.” See appendix for example.
7d. Weighted average base rate. Sum the outstanding
face amount of each term loan priced with a base rate
multiplied by its base rate. Divide the sum by the total
outstanding face amount of loans priced with a base
rate. Report the rate in percent to three decimal places;
for example, if the average interest rate is 2¼ percent,
enter “2.250.” See appendix for example.
7dc. Weighted average maturity. Sum the
outstanding face amount of each term loan
multiplied by its remaining maturity (in months).

Divide the sum by the outstanding dollar amount
(column 7b.). Report the weighted average maturity
in months to two decimal places; for example, if the
average maturity is 18½ months, enter “18.50.” See
appendix for example.
7d. Maximum maturity. Report the maximum
maturity in months.

7e. Maximum maturity. Report the maximum
maturity in months.
7g. Number secured. The total number of term loans
secured by collateral of any kind.
7h. Dollar amount secured. The outstanding
face amount of term loans in thousands of dollars
secured by collateral of any kind.
7i. Number with SBA guarantees. The total number
of term loans with all or a portion of the loan
guaranteed by the SBA.
7j. Dollar amount with SBA guarantees. The
outstand- ing face amount of term loans in
thousands of dollars, even if held at fair value, with
all or a portion of the loan guaranteed by the SBA.
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7k. Number with other guarantees. The total number
of term loans with all or a portion of the loan
guaranteed by an entity other than the SBA.
7l. Dollar amount with other guarantees. The
outstand- ing face amount of term loans in
thousands of dollars, even if held at fair value, with
all or a portion of the loan guaranteed by an entity
other than the SBA.
7f. Number with interest rate floor. The total number
of term loans that utilize interest rate floors in the
loan terms.

checked, skip to question 10.
Item 9 New term C&I loans with SBA guarantees to
U.S. small businesses made and sold during the most
recent calendar quarter and the bank is still servicing.
Enter the amount of loans in thousands of dollars.
9a. Number. The total number of term loans sold.
9b. Sold dollar amount. The total dollar amount of
term loans sold in thousands of dollars.

7g. Dollar amount with interest rate floor.
The outstanding face amount of term loans in
thousands of dollars, even if held at fair value, for
term loans that utilize interest rate floors in the loan
terms.
The total number of term loans for loans that utilize
interest rate floors in the loan terms.
7n. Number at interest rate floor. The total number
of term loans for which the nominal rate of interest
equals the interest rate floor.
7o. Dollar amount at interest rate floor. The
outstand- ing face amount of term loans in
thousands of dollars, even if held at fair value, for
which the nominal rate of interest equals the interest
rate floor.
7h. Weighted average interest rate floor. Sum the
out- standing face amount of each term loan with an
inter- est rate floor multiplied by its floor. Divide the
sum by the total outstanding face amount of loans
with an interest rate floor (column 7g.). Report the
rate in percent to three decimal places; for example,
if the average interest rate is 2¼ percent, enter
“2.250.” See appendix for example.
Item 8 New term C&I loans with SBA guarantees.
Check “yes” if your bank made new term C&I loans
with SBA guarantees to U.S. small businesses that
were
sold during the most recent calendar quarter and that
your bank is still servicing. If “yes” is checked, complete question 9.
Check “no” if your bank did not sell new term C&I
loans with SBA guarantees to U.S. small businesses
during the most recent calendar quarter. If “no” is
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interest rate. Sum the
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Instructions

dollar amount of each sold term loan multiplied by
its stated nominal rate of interest – not the effective
rate or APR. Divide the sum by the sold dollar
amount (column 9b.). Report the rate in percent to
three decimal places; for example, if the average
interest rate is 2¼ percent, enter “2.250.” See
appendix for example.
9d. Weighted average base rate. Sum the dollar
amount of each sold term loan priced with a base
rate multi- plied by its base rate. Divide the sum by
the outstand- ing total amount of sold loans priced
with a base rate. Report the rate in percent to three
decimal places; for example, if the average interest
rate is 2¼ percent, enter “2.250.” See appendix for
example.

maturity in months.
Item 8 New C&I loans made under a commitment
(formal or informal) broken out by fixed rate and
variable rate to U.S. small businesses during the
most recent calendar quarter.
Enter the amount of loans (included in item 5) in
thousands of dollars. Include all C&I commitments to
U.S. small businesses entered into your books or loan
system during the most recent calendar quarter, even
if the loans were approved or disbursed in the prior
calendar quarter. Exclude loans approved or
disbursed but not entered into your institution’s
books or loan system during the most recent calendar
quarter.
Also include:

9e. Weighted average maturity. Sum the dollar
amount of each sold term loan multiplied by its
maturity (in months). Divide the sum by the sold
dollar amount (column 9b.). Report the weighted
average maturity in months to two decimal places;
for example, if the aver- age maturity is 18½
months, enter “18.50.” See appen- dix for example.

• Renewals of or increases in commitments.
Exclude:
• Drawdowns on existing commitments (these
should be included in the response to question 6).
8a. Number. The total number of commitments.

9f. Maximum maturity. Report the maximum
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8b. Commitment dollar amount. The total face amount
of unused and used commitments in thousands of
dollars.

10m. Number at interest rate floor. The total number
ofcommitments for which the nominal rate of interest
equals the interest rate floor.

8c. Outstanding dollar amount. The total face amount
of used commitments in thousands of dollars.

10n. Dollar amount at interest rate floor. The
outstand- ing face amount of used commitments in
thousands of dollars for which the nominal rate of
interest equals the interest rate floor.

8d. Weighted average interest rate. Sum the face
amount of each used loan commitment multiplied by
its stated nominal rate of interest – not the effective
rate or APR. Divide the sum by the outstanding
dollar amount (column 10c 8c.). Report the rate in
percent to three decimal places; for example, if the
average inter- est rate is 2¼ percent, enter “2.250.”
See appendix for example.
10e. Weighted average base rate. Sum the outstanding
face amount of each used loan commitment priced
with a base rate multiplied by its base rate. Divide
the sum by the total outstanding face amount of used
loan commitments priced with a base rate. Report the
rate in percent to three decimal places; for example, if
the average interest rate is 2¼ percent, enter “2.250.”
See appendix for example.
10f. Number secured. The total number of
commit- ments secured by collateral of any kind.
10g. Dollar amount secured. The total face amount of
unused and used commitments in thousands of dollars
secured by collateral of any kind.
10h. Number with SBA guarantees. The total number
of commitments with all or a portion of the loan
guaran- teed by the SBA.
10i. Dollar amount with SBA guarantees. The total face
amount of unused and used commitments in thousands
of dollars, even if held at fair value, with either all or a
portion of the loan guaranteed by the SBA.
10j. Number with other guarantees. The total number of
commitments with all or a portion of the loan guaranteed by an entity other than the SBA.
10k. Dollar amount with other guarantees. The total
face amount of unused and used commitments in thousands of dollars, even if held at fair value, with either
all or a portion of the loan guaranteed by an entity
other than the SBA.
8e. Number with interest rate floor. The total number
of commitments that utilize interest rate floors in the
loan terms.
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8f. Dollar amount with interest rate floor. The
outstanding face amount of used commitments in
thousands of dollars for loans that utilize interest rate
floors in the loan terms.
8g.. Weighted average interest rate floor. Sum the outstanding face amount of each used loan commitment
with an interest rate floor multiplied by its floor.
Divide the sum by the total outstanding face amount
of used loan commitments with an interest rate floor
(column 8f.). Report the rate in percent to three
decimal places; for example, if the average interest
rate is 2¼ percent, enter “2.250.” See appendix for
example.

Item 9 Select Yes or No to indicate if your
institution has an asset size of $10 billion or greater
and makes a noteworthy amount of small business
credit card loans.
Loans reported in this line item are credit card loans
that were reported in items 5 and 8 above, so long as
credit card loans make up a noteworthy amount of
your institution’s lending to small businesses. A
noteworthy amount can be determined through volume
or dollar value of loans, so long as the number and
dollar values are not de minimis to the reporting
institution.
Item 10. New and Outstanding C&I Credit Card
loans to U.S. small businesses broken out by fixed
rate and variable rate as of the last calendar day of
the most recent calendar quarter.
10a. Number of Outstanding Credit Card Loans.
The total number of outstanding loans included in item
5 that are credit card loans.
10b. Outstanding Dollar Amount. The total ending
balances of outstanding credit card loans reported in
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item 5 inItem
thousands
of dollars.
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Instructions

10c. Outstanding Weighted Average Interest Rate.
Sum the face amount of each outstanding credit card
loan multiplied by its stated nominal rate of interest –
not the effective rate or APR. Divide the sum by the
outstanding dollar amount (column 10b.). Report the
rate in percent to three decimal places; for example, if
the average interest rate is 2¼ percent, enter “2.250.”
See appendix for example.
10d. Number of New Credit Card Loans.
The total number of outstanding loans reported in item
8 that are credit card loans.
10e. Outstanding Dollar Amount of New Credit
Card Loans. The total outstanding ending balances of
new credit card loans originated in the most recent
calendar quarter and reported in item 8 in thousands of
dollars.
10f. New Weighted Average Interest Rate. Sum the
face amount of each new credit card loan multiplied by
its stated nominal rate of interest – not the effective
rate or APR. Divide the sum by the dollar amount
(column 10e.). Report the rate in percent to three
decimal places; for example, if the average interest rate
is 2¼ percent, enter “2.250.” See appendix for
example.

Item 11. Select one answer to indicate how credit
line usage has changed during the most recent
calendar quarter.
No quantitative analysis is necessary in answering this
item.
Item 12. Select one answer per row to indicate the
importance of each reason for the change in credit
line usage during the most recent calendar quarter.
No quantitative analysis is necessary in answering this
item.
Item 13. Select one answer to indicate how loan
demand for U.S. small business C&I loans has
changed during the most recent calendar quarter.
Loan demand is defined as the amount of inquires via
loan applications or informal walk-in inquiries. No
quantitative analysis is necessary in answering this
item.

Item 14 Include all C&I loan applications
received from U.S. small businesses during the
most recent calendar quarter.
An application is defined as a formal document outlining the essential attributes regarding the financial position of the borrower on which the lender bases the
decision to lend. Exclude informal walk-in inquires
(these should be considered in the response to question 13). Applications approved include all loans that
your bank intends to make whether or not the loan
terms have been finalized, funds have been disbursed,
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or the loan has been entered into your
institution’s books or loan system.

It is possible for the number of applications approved
to exceed the number of applications received for a
given period if an application was received in a prior
period and not considered until the current period.

answering this question.
2. For further information about CRA, see
https://www.ffiec.gov/cra/default.htm.

14a. Number. The total number.
14b. Dollar amount. The total amount in thousands
of dollars.
Item 15 Check “yes” if your institution tracks
lending in low and moderate income (LMI) tracts
for Community Reinvestment Act (CRA) purposes
or voluntarily for other reasons.
If “yes” is checked, complete question 16.
Check “no” if your institution does not track
lending in low and moderate income (LMI) tracts
for Commu- nity Reinvestment Act (CRA) purposes
or voluntarily for other reasons. If “no” is checked,
skip to ques- tion 17.2
Item 16 Include all C&I loan applications received
from U.S. small businesses located in low and
moderate income (LMI) tracts during the most
recent calendar quarter.
16a. Number. The total number.
16b. Dollar amount. The total amount in thousands
of dollars.
Item 15 Select one answer per column to rank the
most common reasons for denying U.S. small
businesses C&I loans during the most recent calendar
quarter.
No quantitative analysis is necessary in answering
this question.
Item 16 Select one answer to indicate how
credit standards for loans to U.S. small
businesses have changed during the most recent
calendar quarter.
Credit standards are the internal policies and
guide- lines an institution uses to determine
whether a bor- rower meets desired credit quality
criteria. No quanti- tative analysis is necessary in
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No quantitative analysis is necessary in answering
this question.

Item 17 Select one answer per row to indicate how
C&I loan terms have changed during the most
recent calendar quarter.
No quantitative analysis is necessary in answering
this question.

Item 23 If two or more reasons are classified as very
important in question 22, and one of the reasons is the
most important, identify that reason.
No quantitative analysis is necessary in answering
this question.

Item 18 Select one answer per row to indicate
the importance of each reason for tightening
credit standards or terms during the most
recent calendar quarter.
No quantitative analysis is necessary in answering
this question.

Item 20 Select one answer to indicate how the
credit quality of applicants has changed during
the most recent calendar quarter.
Credit quality is defined as the attributes a bank uses
to assess a borrower’s credit quality and probability
of default. The criteria includes, but is not limited
to, credit scores, quality of collateral, personal
wealth, debt to income ratio, and forecasted business
growth. No quantitative analysis is necessary in
answering this question.

Item 21 If two or more reasons are classified as
very important in question 20, and one of the
reasons is the most important, identify that reason.
No quantitative analysis is necessary in answering
this question.
Item 19 Select one answer per row to indicate
the importance of each reason for easing credit
standards or terms during the most recent
calendar quarter.

Item 21 Select one answer per row to indicate
how credit quality has changed during the most
recent calendar quarter.
No quantitative analysis is necessary in answering
this question.

LI-6

FR 2028D
October
December
20197

December 31September
2020
FR30,
2028D

Line Item Instructions

Appendix: Weighted Average Calculation Examples
Outstanding dollar amount (thousands)

Interest rate

Base rate

Interest rate floor

Remaining maturity
(months)

500
420
290

4.25
4.1
4.3

2
n.a.
2.15

3.5
n.a.
3.75

18
4
10

Weighted average interest rate = [(500*4.25) + (420*4.10) + (290*4.30)]/(500 + 420 + 290) = 4.210
Weighted average base rate = [(500*2.00) + (290*2.15)]/(500 + 290) = 2.055
Weighted average interest rate floor = [(500*3.50) + (290*3.75)]/(500 + 290) = 3.592
Weighted average maturity = [(500*18) + (420*4) + (290*10)]/(500 + 420 + 290) = 11.22
Weighted average interest rate =

Weighted average base rate =

[(500∗4.25) + (420∗4.10) + (290∗4.30)]
(500 + 420 + 290)

[(500∗2.00) + (290∗2.15)]
(500 + 290)

Weighted average interest rate floor =

Weighted average maturity =

= 2.055

[(500∗3.50) + (290∗3.75)]
(500 + 290)

[(500∗18)+(420∗4)+(290∗10)]
(500+420+290)

= 4.210

= 3.592

= 11.22

If your institution is unable to calculate the weighted average interest rate, a simple average interest rate
calculation may be used.

FR
FR2028D
2028D

December 31September
30, 2020
December
2017

Line Item Instructions

LI-7

October
FR 2028D
December
20197

FR 2028D
December 31September 30, 2020

Line Item Instructions

FR 2028D
FR 2028D

December 2017
December 31September 30, 2020

FAQS FOR INSTITUTIONS

Small Business Lending Survey

FR 2028D Reporting Questions
and Answers
General Questions
Question: Can the definition of a small business loan
for this survey be the same as that for Call Report section RC-C part II which states: “Report the number and
amount currently outstanding as of the report date of
business loans with “original amounts” of
$1,000,000 or less and farm loans with “original
amounts” of $500,000 or less.”?
Answer: One of the drivers of developing the
FR 2028D survey was that while all small business loans
will be relatively small, not all small loans are to small
businesses. So a key aspect of the FR 2028D survey is for
the size of the borrower to drive our pool of respondents.
The Survey Scope section of instructions states: “For the
purpose of this survey, U.S. nonfarm small businesses are
those nonfarm businesses domiciled in the U.S. with no
more than $5 million in total annual revenues.” If annual
revenues are not readily available on a bank’s data
system, please contact your FR 2028D analyst for additional information. .” Commercial banks that do not
track small business lending based on annual revenue
may utilize their internal criteria to define small
business lending for purposes of responding to survey
items. For example, some small commercial banks may
consider all of their lending small business lending.”

$5 million in total annual revenues. The definition of C&I
loans, which can be found in the FR 2028D instructions—General Instructions, Survey Scope section, is the
same as that used for line Item 4 of Schedule RC-C
(FFIEC 031, 041, 051). For details, see the Call Report
instructions. for FFIEC 031, 041reporters, C&I loans
to U.S. small businesses are included in Item 4.a of
Schedule RC-C, Part I. For FFIEC 051 reporters,
C&I loans to U.S. small businesses in U.S. domiciled
addresses included in item 4 of RC-C, Part I.

Question: What is the universe of loans that should be
included in loan amounts? Is it all C&I? All C&I made
to a small business?
Answer: It is all C&I loans made to a small business,
which is defined in the survey as a U.S. nonfarm small
businesses domiciled in the U.S. with no more than
FR 2028D
FR 2028D

FAQ-1
December 31September 30,
2020
August 2018

Question: for
Should
CRE or agricultural loans to
FAQs
Institutions

small businesses be included in the survey?
Answer: No, only loans that are reported as C&I loans
in Schedule RC-C (FFIEC 031, 041, 051), line Item 4
should be included in the survey.
Question: Should matured and charged off accounts
be included in outstanding or new loans amounts?
Answer: No, matured and charged off loans should
not be included.
Question: When reporting the outstanding balance, is
it the contractual balance owed or the accounting book
balance, i.e., net of charge-offs, interest payments
received applied to principal, and deferred FASB fees?
Answer: Accounting book balance should be used.
Question: Where the survey asks for the number of
loans with other guarantors, this is defined as a guaranty by an entity other than the SBA. Does this refer
to other government entity guarantees?
Answer: Any loans with guarantees (other
government or otherwise) should be included.
Question: If an institution has both an SBA
guarantee and another type of guarantee, should the
SBA guar- antee take precedence, or should we
include it in both categories?
Answer: You should include those facilities in both
cat- egories.

Question: Do “other guarantees” include
personal guarantees?
Answer: Yes “other guarantees” include any
guarantee other than a SBA guarantee.
Question: For a commercial credit card portfolio,
if it includes the full range of liability structures
(joint & several, individual and corporate-only),
should the liability structure be treated as a
personal guarantee? Answer: No, liability
structures should not be treated as a personal
guarantee.

FR 2028D

December 31September 30, 2020

Question: Some of the institution’s commercial
credit card portfolios have recourse programs
where their partners—typically, national retailers—
cover borrower losses under certain conditions.
Are such programs a form of “other guarantees”?
Answer: Yes, such programs are a form of ‘other
guaran- tees.’
Question: The category “Net Drawdowns on C&I
Commitments” could be a positive number if drawdowns exceed pay downs, but could also be a
negative number if pay downs exceed drawdowns. Is
that correct? Answer: Yes, “Net Drawdowns on C&I
Commitments” can be negative.
Question: For “Net Drawdowns on C&I
Commit- ments”, should fees and interest be
included when making this calculation?
Answer: If it is capitalized into the loan, then Yes,
include it in the calculation for net drawdowns. If the
fees are outside the loan amount, then No.
Question: Should revolving lines of credit be
reported in this survey or just term loans?
Answer: Revolving lines should be included in
commit- ments (line items 5, 6, and 10, 8).
Question: Can an institution submit comments
to explain any assumptions, caveats, etc.
regarding its data submission?
Answer: No, there are currently no sections in the
FR 2028D survey to submit comments to explain any
assumptions or caveats. If an institution has any
ques- tions or comments, please contact or provide the
infor- mation to your FRB analyst via email.

Line Item 4 Questions
Question: For outstanding dollar amount, the
instruc- tions ask for the total face value.
Should the net or gross balance of the loan be
reported? If net, should purchased participations
be included?
Answer: The outstanding dollar amount
should be reported as it is reported in line
Item 4 of Schedule RC-C, Part I (FFIEC 031, 041, 051).
Purchased participations should be included if
the loan is a small business loan as defined in
the FR 2028D survey instruc- tions.
Question: For line item 4b on the outstanding face
amount of term loans, does face amount mean the
FR 2028D
FR 2028D

original amount of the loans as detailed in the loan
contract? For example, if a loan that was originally
for
$1,000,000 had paid down to $600,000, should
$1,000,000 still be reported for item 4b as that was
the face amount?
Answer:The face value of the loan when it was
originated was $1,000,000. But since line item 4 is
asking for out- standing balance face amounts and
$400,000 has been paid down, then the outstanding
face amount for this question is $600,000.

Line Item 5 Questions
Question: For line item 5, what is the definition of a
formal and informal commitment?
Answer: A formal commitment is a commitment for
which a bank has charged a fee or other
consideration or otherwise has a legally binding
commitment. It is usually evidenced by a binding
contract, to lend a specified amount, frequently at a
predetermined spread over a specific base rate. It
requires that the borrower meet covenants in the
contract and pay a fee on the unused credit
available. These include revolving credits under
which the borrower may draw and repay loans for
the duration of the contract.
A line of credit is defined as an informal
arrangement under which the lender agrees to lend
within a set credit limit and to quote a rate on
demand for a take down amount and maturity
requested by the borrower. These arrangements may
not be legally binding.

FAQ-3
August 2018
December 31September 30, 2020

FAQs
for6 Institutions
Line Item
Questions
Question: Line item 6a (Net Drawdowns): What
loan types are you looking to be reported in this
item? Is it only revolving/credit or does it include
term loans?
Would it just be new loans or does it include
renewals?
Answer: Net drawdowns (drawdowns—
repayments) of outstanding commitments during
the quarter. Note that this is drawdowns less
repayments in the current survey period and not
outstanding commitments in the current survey
period less outstanding commitments in the previous survey period.

Amswer: The term “noteworthy” does not specify
a certain percentage or dollar amount of loans. If
small business credit cards are a significant
business line for your institution and you meet the
size requirements, line item 10 should be
completed.

that information on variable rate loans should be
collected when the survey is renewed, which if
approved would be for the June 30, 2020 as-of date.
These loans should not be incorporated into any
other line item.

Line Items 14–16 Questions

Line Items 8 and 9 Questions
Question:Line items8& 9:If an institution only
has variable rate, term C&I loans with SBA
guarantees that were sold and it is still servicing
the loans, should it answer yes to question 8 and
enter zeros for line item 9 since the variable rate
column is grayed out?
Answer: In this case, the institution should answer no
to line item 8 and line item 9 will be grayed out.
Graying out the variable rate columns was an
oversight when the
FR 2028D survey was designed. We plan to propose

Question:Line items 14 or 16 (Applications Received
and Approved): Should loan renewals be counted
as an application received/approved by the DI for
this item? Answer: Yes.
Question: Concerning the application information
for low and moderate income (LMI) tracts
requested in line items 16a and 16b, what should
an institution

Line Items 9 and 10 Questions
Question: For line item 10 (Credit Card Loans) if a
single credit card loan was made to a business but
multiple credit cards were issued, should that be
reported as multiple loans or just one loan?
Amswer: In the instance that multiple cards are
issued to a single business, it should be recorded as
one loan to the business, rather than multiple loans
to individual customers.
Question: For line item 10 (Credit Card Loans), how
is the term “noteworthy” quantified? Is it a certain
percentage or dollar amount of loans?

Line Item 14 Questions
Question: For line item 14 (Applications Received
FR 2028D

December 31September 30, 2020

and Approved): Should loan renewals be counted as
an application received/approved by the DI for this
item?
Answer: Yes.
Question: Concerning the applications received and
approved item 14a. and 14b., if an institution tracks
only applications approved, what should be reported
on these line items?
Answer: If an institution does not have a value to
report for applications received, they should report
nothing for item 14. We are only interested in the
data if it contains values for both applications
received and approved.

Question: Concerning the applications received and
approved item 14a. and 14b., if an institution tracks
only the number of applications received and
approved and not the dollar amount, what should be
reported?
Answer: If an institution does not have values to
report for the dollar amount of applications received
and approved, they should report the number of
applications received and approved in line 14a. and
leave the dollar amount received and approved in
line 14b. blank.

Line Items 18 and 19 Questions:
Question: What is meant by “nonbank lenders”
in questions 18e. and 19e.?
Answer: The term “nonbank lenders” intends to
encompass a wide variety of nonbanking
institutions, including but not limited to fintech
lenders, credit unions, savings and loans
associations, and non-traditional lending
organizations.
FAQ-2
August 2018

FR
FR2028D
2028D

FR 2028D

FAQ-5

December 31September
30, 2020
August
2018

FAQs for Institutions

report if it only tracks LMI for booked applications
and not applications received? Can the institution provide this information only for the booked loan data?
Answer: No, if the institution cannot provide both LMI
applications received and LMI applications approved,
line item 15 should be answered as “no” and line item 16
will be “grayed out” so that it will not be answered.

FR 2028D
FR 2028D

Question:Line items 15 & 16 (LMI applications):If an
institution does not track the LMI applications
received or approved, how should these items be
reported?
Answer: If an institution does not track LMI applications both received and approved, it should answer line
item 15 “no” and line item 16 automatically will be
greyed out.

FAQ-3
December 31September 30,
2020
August 2018