Commercial Loan Policy
This Commercial Loan Policy addresses commercial loan (CML) products, underwriting, and related lending operations of a bank, credit union, fintech company, or other type of financial institution. In general, the primary purpose of an organization’s commercial lending operations is to generate income while serving the credit needs of all creditworthy businesses within its geographic area by maintaining an effective loan policy and underwriting standards, in conjunction with sound loan administration by its officers and lending personnel, in order to achieve a healthy loan portfolio.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Definitions – Topic 3
- Risk Management – Topic 4
- Responsibility – Topic 5
- General Credit Underwriting Guidelines – Topic 6
- Short Term Loans – Topic 7
- Revolving Lines of Credit – Topic 8
- Asset Based Loans and Formula Lines of Credit – Topic 9
- Term Loans – Topic 10
- Professional Loans – Topic 11
- Flooring Lines of Credit – Topic 12
- Indirect Dealer Loans – Topic 13
- Letters of Credit – Topic 14
- Participation and Purchased Loans – Topic 15
- Unsecured Loans – Topic 16
- Savings/TCD Secured Loans – Topic 17
- Stock and Bond Secured Loans – Topic 18
- Small Business Administration Loans – Topic 19
- Small Business Lending Fund Program Loans – Topic 20
- Title Company Loans – Topic 21
- Faith Based Organization Loans – Topic 22
- Native American Tribal Lending – Topic 23
- Agricultural Loans – Topic 24
- Leveraged Financing – Topic 25
- Business and Industry Guaranteed Loan Program – Topic 26
- Oil and Gas Industry Loans – Topic 27
- Lease Financing – Topic 28
- Marketplace Loan Program – Topic 29
- Venture Loan Policy – Topic 30
- Audit Policy – Topic 31
- Staff Training – Topic 32
- Retention of Documentation – Topic 33
Includes the following form templates:
- Commercial Loan Action Plan and Status Report (2 pages)
- Loan Presentation Form – Commercial (8 pages)
Recent updates to this product:
10/15/24 Update
OCC Bulletin 2024-29 – Commercial Lending: Refinance Risk
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
11/15/23 Update
OCC Bulletin 2023-34 – Commercial Lending: Venture Loans to Companies in an Early, Expansion, or Late Stage of Corporate Development
10/16/23 Update
OCC Bulletin 2023-30 – Lease Financing: Revised Comptroller’s Handbook and Rescissions
08/15/23 Update
OCC Bulletin 2023-27 – Loan Purchase Activities: Legal Lending Limit Guidance
06/01/23 Update
SBA – 5000-846991 – Implementation of Removal of the Loan Authorization
SBA – 5000-846607 – Implementation of the Final Rule of Affiliation and Lending Criteria for the SBA Business Loan Programs
This Commercial Loan Policy (approximately 332 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
Product Update Protection Plan
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