Regulations surrounding HVCRE loans have been nothing short of confusing and challenging. Senators Tom Cotton and Doug Jones of the Senate Banking Committee introduced a bill last month to add clarity to these regulations. This bill is a companion to HR 2148 passed by the House last November. Among other things, HR 2148 excludes loans made prior to January 1, 2015 from HVCRE status and allows HVCRE loans to be reclassified as non-HVCRE upon completion of the project and generation of cash flow sufficient to support debt service and expenses. HR 2148 also excludes loans for the acquisition or refinance of existing income-producing real property, and the improvement of existing income-producing improved real property, secured by a mortgage so long as the cash flow Is sufficient to support debt service and expenses. However, it remains to be seen whether the Senate bill, and the corresponding House measure, will bring clarity in application or further confusion.