FR2028_20230718_omb_B

Supporting Statement Part B for the
Survey of Small Business and Farm Lending
(FR 2028; OMB No. 7100-0061)
Summary
For all information collections that involve surveys or require a statistical methodology,
the Board of Governors of the Federal Reserve System (Board) is required to provide a complete
justification and explanation of the use of such a methodology. For collections that employ
surveys without such a methodology, the Board should be prepared to justify its decision not to
use statistical methods in any case where such methods might reduce burden or improve
accuracy of results.
Background
The Survey of Small Business and Farm Lending (SSBFL) comprises the following three
reports:
• Survey of Terms of Bank Lending to Farmers (FR 2028B),
• Prime Rate Supplement of Survey of Terms of Lending (FR 2028S), and
• Small Business Lending Survey (FR 2028D).
The SSBFL collects unique information concerning price and certain nonprice terms of
loans made to businesses and farmers each quarter (February, May, August, and November)
from a sample of banks. The FR 2028B collects detailed data on individual loans funded during
the first full business week of the mid-month of each quarter and the FR 2028S collects the
prime interest rate for each day of the survey week from FR 2028B respondents. The FR 2028D
provides focused and enhanced information on small business lending including rates, terms,
credit availability, and reasons for their changes. The FR 2028D collects quarterly average
quantitative data on terms of small business loans and qualitative information on changes and the
reasons for changes in the terms of lending. From these sample SSBFL data, estimates of the
terms of business loans and farm loans extended are constructed. The aggregate estimates for
business loans are published in the Federal Reserve Bank of Kansas City’s quarterly release,
Small Business Lending Survey, and aggregate estimates for farm loans are published in the
statistical release, Agricultural Finance Databook.
Universe and Respondent Selection
The FR 2028B panel has an authorized size of 250 domestically chartered commercial
banks. The panel of banks has been drawn from a random sample of banks stratified according to
farm loan volumes since 1989. Since that time, the authorized size of the panel has been 250
banks, with 164 banks currently reporting. The number of respondents is less than the authorized
size due to mergers among reporters and loss of respondents due to the voluntary nature of the
panel. Table 1 presents the number of reporters disaggregated by Federal Reserve District and by
bank-size group for the current panel. If the authorized size of the panel is reduced to 164, the
standard errors for the data items would increase 23 percentage points. Moreover, the standard
errors on the regional estimates, which are based on smaller samples, likely would be greatly

increased. In addition, the Federal Reserve has implemented an on-going effort to recruit new
reporting banks and expand the panel to the authorized size of 250. Consequently, the
recommendation is not to change the authorized number of banks.
Table 1
Number of Reporters on FR 2028B and FR 2028S

District
1
2
3
4
5
6
7
8
9
10
11
12
TOTAL

Number of Small
FR 2028B and
FR 2028S
Respondents1
0
0
0
11
4
3
24
14
11
34
6
3
110

Number of Large
FR 2028B and
FR 2028S
Respondents2
0
1
3
13
2
4
1
8
2
10
6
4
54

The authorized panel for the FR 2028D panel is 398 domestically chartered commercial
banks. The size is based on obtaining survey results with a 95% confidence level and 5%
standard error, allowing for a 10% nonresponse rate. The panel of banks is a random sample of
banks stratified according to the dollar volumes of commercial and industrial loans with original
amounts of $1,000,000 or less. Table 2 presents the current number of reporters disaggregated by
district and by bank size group for the panel.
The number of respondents is less than the authorized panel size due primarily to the
voluntary nature of the report, recruiting challenges during the panemic, and because it is a
relatively new survey. If the authorized size of the panel is reduced to 122, the standard errors for
the data items would increase 81 percentage points. No changes to the authorized panel size are
recommended.

1
2

Institutions with total consolidated assets less than $750 million.
Institutions with total consolidated assets of $750 million or more.

2

Table 2
Number of Reporters on FR 2028D Panel
Number of Small
FR 2028D
Respondents3
1
0
2
0
3
0
4
2
5
4
6
3
7
7
8
1
9
4
10
7
11
0
12
1
TOTAL
29
District

Number of Large
FR 2028D
Respondents4
5
6
8
12
6
10
13
1
3
14
8
7
93

Procedures for Collecting Information
The FR 2028B and FR 2028S are filed every mid-quarter as of February, May, August,
and November. The FR 2028D transmission period begins the day following the last day of each
calendar quarter (March, June, September and December) and concludes 14 days after the first
business day in the second month of each quarter
Methods to Maximize Response
The process to recruit respondents for the FR 2028 panels uses an algorithm which, after
verifying that there is still room on the panel based on outstanding panel requests, selects
replacement banks randomly based on panel needs. Responses to the panel requests may take
several months, including credentialing and preparation time.
Testing of Procedures
There is no testing of procedures.

3
4

Institutions with total consolidated assets less than $750 million.
Institutions with total consolidated assets of $750 million or more.

3