The Scorecards

1. CRE – Income Producing 

   This scorecard is for commercial or multifamily projects that are built and leased out. Most banks have commercial lending in their portfolio. Risk categories include leverage, borrower strength, asset quality, and market risk.

2. CRE – Construction 

   This scorecard is for commercial real estate projects still under construction. Risk categories include leverage, borrower strength, refinance risk, asset quality, and market risk. 

3. C&I - Commercial & Industrial

   This scorecard is for any type of operating company in any industry. Most banks lend to operating companies and will find this scorecard useful. Risk categories include coverage, liquidity, leverage, industry, and company. 

4. Small Business 

   This scorecard can be used for U.S. Small Business Administration (SBA) 7(a) loans and other loans primarily based on a small business credit score.

5. High Net Worth Individual

   This scorecard should be used when an individual or family is providing substantial support to a project or company. Risk categories include coverage, liquidity, leverage, and borrower characteristics. 

6. Public Debt Rated Companies

   This scorecard can be used for participation or direct loans to companies that have a debt rating from the major agencies. The advantages of using this scorecard include consistency and transparency with risk rating across the commercial portfolio.

7. General

   This scorecard is a template that includes the same structure as the other scorecards but allows for evaluating credits not well-served by the other scorecards. Inputs and risk ratings are stored and can be part of the portfolio reporting.

8. Facility

   This scorecard is used to evaluate the collateral coverage for each loan. Multiple sources of collateral of any type can be used. The scorecard will discount the collateral value based on generally acceptable discount rates, and then compare total collateral to the outstanding balance.