On December 5, the OCC issued updated guidance for banks on “venture loans” — commercial loans to companies in early, expansion or late stages of corporate development — rescinding its November 2023 bulletin of the same name (previously covered by InfoBytes here). The new bulletin maintained that there are generally higher risks associated with lending to early- and growth-stage companies but clarified that the OCC does not discourage prudent venture lending and that it is the responsibility of a bank’s board and management to ensure such loans are consistent with the bank’s risk appetite and are appropriately managed. The updated guidance provides additional detail on prudent risk management practices, including the need for strong underwriting, appropriate documentation, accurate risk-rating, and sufficient reserves.