Fr 2028d

DRAFT
Board of Governors of the Federal Reserve System

Instructions for the Preparation of

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

August 2023

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 published 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.

FFIEC 031 and 041 reporters, C&I loans to U.S. small
businesses are included in Item 4.a of Schedule 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. (domestic) offices of the
reporting bank (Column B of the FFIEC 031).

Include:
• Overnight loans.

Survey Scope

• Construction and land development loans that are
not secured by real estate.

This survey covers commercial and industrial (C&I)
loans made to U.S. nonfarm small businesses. The survey period covers the most recent calendar quarter.

• Credit card loans

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 borrowers domiciled in the fifty states of the U.S., the District of Columbia, or U.S. territories and possessions,
including U.S. offices or subsidiaries of non-U.S. (foreign) businesses. For further detail, please refer to the
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
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.

FR 2028D

Exclude:
• Loans denominated in non-U.S. currencies.
• Loans made by an international division, international 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.
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General Instructions

Preparation of Survey
The survey will be submitted quarterly. The submission
period will begin the day after the calendar quarter end
and will conclude 14 days after the first business day in
February, May, August, and November. 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.
Add: In general, negative entries are
not appropriate for this report.
Respondents should notify their
Reserve Bank for guidance if negative
entries are warranted.

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December 2020

FR 2028D

INSTRUCTIONS FOR PREPARATION OF

Disclaimer: Some question/answers may need
to be renumbered based on revisions. Effective
Dates in footer will need to be updated to
September 2023.

Small Business Lending Survey
Add:
Item 1 is to be completed annually in the March reports only or if a change is made to
your internal small business definition. Institutions reporting survey data for the first time
should also complete this item regardless of the report date.
1. Check “Yes” if your institution defines a small business loan as a loan made to a
nonfarm business domiciled in the U.S. with no more than $5 million in total revenue.
Check “No” if your institution does not use the preferred classification for what
constitutes a U.S. nonfarm small business loan when filing this survey. (Nonfarm
business domiciled in the U.S. with no more than $5 million in total revenue.) If "No" is
checked, please describe your institution's definition of a small business for purposes of
classifying a small business loan for this survey.

Line Item Instructions
1. Check "No"
“no” if your institution does not use more
than one base rate for C&I loans to U.S. small busi"No" is checked, complete question 2.
nesses. If “no”

"Yes"

Check “yes” if your institution uses more than one
base rate for C&I loans to U.S. small businesses. If
"Yes" “yes” is checked, complete question 3.

2. Enter the base rate your institution uses (i.e., prime
rate, LIBOR, 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
New term C&I loans reported in Item 7
quarter. (Note:
should also be included in Item 4)
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 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
FR 2028D

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.
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.
4h. Weighted average interest rate floor. Sum the outstanding face amount of each term loan with an interest 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. (Note: New C&I loans made under commitment reported in Item 8 should also be included in
Item 5)
Commitments are broadly defined to include all promises 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.
5a. Number. The total number of commitments.
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Line Item Instructions

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 interest rate is 2¼ percent, enter “2.250.” See appendix for
example.
5e. Number with interest rate floor. The total number of
commitments that utilize interest rate floors in the loan
terms.
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.

Also include:
• Renewals of term loans.
• Conversions of commitment into term loans.
Exclude:
• Loans purchased in the secondary loan market.
• Purchased factored loans (that is, purchased
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 (column 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 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.
7e. Maximum maturity. Report the maximum maturity
in months.
7f. Number with interest rate floor. The total number of
term loans that utilize interest rate floors in the loan
terms.
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.

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.
(Note: New term C&I loans reported in Item 7 should also be included in line Item 4.)
7h. Weighted average interest rate floor. Sum the outEnter the amount of loans in thousands of dollars.
standing face amount of each term loan with an interInclude all term C&I loans to U.S. small businesses
est rate floor multiplied by its floor. Divide the sum by
entered into your books or loan system during the
the total outstanding face amount of loans with an
most recent calendar quarter, even if the loans were
interest rate floor (column 7g.). Report the rate in perapproved or disbursed in the prior calendar quarter.
cent to three decimal places; for example, if the average
Exclude loans approved or disbursed but not entered
interest rate is 2¼ percent, enter “2.250.” See appendix
into your institution’s books or loan system during the
for example.
most recent calendar quarter.
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FR 2028D

Line Item Instructions

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. (Note: New C&I loans made under commitment reported in line
Item 8 should also be included in Item 5)
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:
• Renewals of or increases in commitments.

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.

Exclude:
• Drawdowns on existing commitments (these should
be included in the response to question 6).
8a. Number. The total number of commitments.
8b. Commitment dollar amount. The total face amount
of unused and used commitments in thousands of
dollars.

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.

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

10b. Outstanding Dollar Amount. The total ending balances of outstanding credit card loans reported in
item 5 in thousands of dollars.

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 8c.). 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.

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.

8e. Number with interest rate floor. The total number of
commitments that utilize interest rate floors in the loan
terms.
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.
FR 2028D

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
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Line Item Instructions

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
question.
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
question.
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
question.
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,
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.
14a. Number. The total number.
14b. Dollar amount. The total amount in thousands of
dollars.
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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 guidelines an institution uses to determine whether a borrower meets desired credit quality criteria. 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 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 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.
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 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.
FR 2028D

Line Item Instructions

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

Interest rate

Interest rate floor

Remaining maturity (months)

500
420
290

4.25
4.1
4.3

3.5
n.a.
3.75

18
4
10

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

FR 2028D

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FAQS FOR INSTITUTIONS

Small Business Lending Survey

FR 2028D Reporting Questions and
Answers
Add:The Call Report uses
General Questions

Replace
with:
generally

loan size to approximate
small business due to the
correlation between loan
size and business size.

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 loans
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.” 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.
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
$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 for FFIEC 031, 041 reporters, C&I loans to U.S.
small businesses are included in Item 4.a of SchedFR 2028D

ule 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: Should CRE or agricultural loans to 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: 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 Commitments”, 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 commitments (line items 5, 6, and 8).
Question: Can an institution submit comments to
explain any assumptions, caveats, etc. regarding its
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December 2020

FAQs for Institutions

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 questions or comments, please contact or provide the information to your FRB analyst via email.

Line Item 4 Questions
Question: For outstanding dollar amount, the instructions 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 instructions.
Question: For line item 4b on the outstanding face
amount of term loans, does face amount mean the
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 outstanding 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
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December 2020

down amount and maturity requested by the borrower.
These arrangements may not be legally binding.

Line Item 6 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.

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?
Answer: 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?
Answer: 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.

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

FAQs for Institutions

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.

FR 2028D

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-3

December 2020