The loan money landed in my business bank account — how do I record it so it isn't treated as income?

Money you borrowed isn't income — it's something you owe

When the bank loan is taken out, the proceeds are recorded by crediting Notes Payable (a liability) for the full loan principal and debiting Cash — no revenue account is used. (jurisdiction: United States (US GAAP as taught by the text; the text refers to generally accepted accounting principles (GAAP), the SEC, and a State Tax Board), entity_scope: Illustrative worked example: Sierra Sports, the textbook's fictional retail sporting-goods company, conditions: illustrative worked example; initial recognition of a bank loan (note) at the date the loan is taken out)

“Notes Payable increases (credit) for the full loan principal amount. Cash increases (debit) as well.”

A customer prepayment is carried in an unearned revenue account, which cannot be recognized as earned revenue until the product is provided; that unearned revenue account is a current liability account that is increased by a credit as the outstanding obligation to the customer grows. (jurisdiction: United States (US GAAP as taught by the text; the text refers to generally accepted accounting principles (GAAP), the SEC, and a State Tax Board), entity_scope: Illustrative worked example: Sierra Sports, the textbook's fictional retail sporting-goods company, conditions: illustrative worked example; cash prepayment received before delivery of the product)

“Unearned Uniform Revenue accounts reflect the prepayment from the league, which cannot be recognized as earned revenue until the uniforms are provided. Unearned Uniform Revenue is a current liability account that increases (credit) with the increase in outstanding product debt.”

On a cash sale subject to sales tax, Cash is debited for the sale amount plus sales tax, Sales Tax Payable is credited for the tax (here 6% of $18,000) as a liability owed to the State Tax Board, and Sales is credited only for the original sale amount excluding the tax — so part of the cash received is a liability rather than revenue. (jurisdiction: United States (US GAAP as taught by the text; the text refers to generally accepted accounting principles (GAAP), the SEC, and a State Tax Board), entity_scope: Illustrative worked example: Sierra Sports, the textbook's fictional retail sporting-goods company, conditions: illustrative worked example; cash sale of $18,000 at a 6% sales tax rate)

“Cash increases (debit) for the sales amount plus sales tax. Sales Tax Payable increases (credit) for the 6% tax rate ($18,000 × 6%). Sierra’s tax liability is owed to the State Tax Board. Sales increases (credit) for the original amount of the sale, not including sales tax.”

QuickBooks Online lets a user set up a liability account to record a loan and its payments; that account tracks what the user owes, and the deposit of the loan money into the user's bank account can also be recorded. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026)

“You can set up a liability account in QuickBooks Online to record a loan and its payments. This account tracks what you owe. You can also record the deposit of that loan money into your bank account.”

Partly established. Established: amounts received under a borrowing are recorded as an obligation rather than as revenue (S01). Missing: why the transaction presents itself to the reader as income; why the transaction presents itself to an accounting system as income.

Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: high quality professional secondary reference, official platform documentation.

Setting up the loan account so the balance lands on your balance sheet

Where the loan is not being paid off within the fiscal year, the account described is a Long Term Liabilities account type with the Notes Payable detail type. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026, conditions: the loan is not being paid off within the fiscal year)

“If you aren’t paying off this loan within the fiscal year, create a Long Term Liabilities account with the Notes Payable detail type.”

Where the loan is being paid off by the end of the fiscal year, the account described is an Other Current Liabilities account type with the Loan Payable detail type. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026, conditions: the loan is being paid off by the end of the fiscal year)

“If you’re paying off this loan by the end of the fiscal year, create an Other Current Liabilities account with the Loan Payable detail type.”

For the line-of-credit principal account, the article instructs selecting Other Current Liabilities from the Account type dropdown. (jurisdiction: United States (QuickBooks Online US edition, en-US support site), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, platform_edition: US edition; article updated 8/2/2026, conditions: creating the liability account for the line of credit principal)

“From the Account type ▼ dropdown, select Other Current Liabilities .”

For the line-of-credit principal account, the article instructs selecting Line of Credit from the Detail type dropdown. (jurisdiction: United States (QuickBooks Online US edition, en-US support site), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, platform_edition: US edition; article updated 8/2/2026, conditions: creating the liability account for the line of credit principal)

“From the Detail type ▼ dropdown, select Line of Credit .”

For the account that will record the loan received, the Account Type is set to Other Current Liability, or to any other liability account chosen on the basis of the loan received, and other necessary details are entered; the document leaves the choice of liability account type open rather than fixing it to Other Current Liability. (jurisdiction: United States (page served as the US-EN / United States English edition; other country editions are listed separately), entity_scope: Businesses using Zoho Books to record loans they have received, platform: Zoho Books, platform_edition: United States (US-EN) edition of the Zoho Books knowledge base, conditions: Creating the account that will record the loan received)

“Select the Account Type as Other Current Liability (or any other liability account based on the loan received) and enter other necessary details.”

Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: high quality professional secondary reference, official platform documentation.

Handling the deposit in the bank feed without recording it twice

For a new loan that has been deposited to the user's bank, the Opening Balance is left at US $0. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026, conditions: the loan is new and has been deposited to the user's bank account)

“For a new loan that’s been deposited to your bank, leave the Opening Balance at US $0 .”

Where a loan has been added with an opening balance other than $0 and the user's bank feeds show the deposited loan amount, the deposit into the bank account is recorded with an additional journal entry. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026, conditions: the loan was added with an opening balance other than $0; the bank feeds show the deposited loan amount)

“If you’ve added a loan with an opening balance other than $0, and your bank feeds show the deposited loan amount, record the deposit into your bank account with an additional journal entry. Here’s how to create a journal entry:”

In that journal entry, the liability account is selected in the Account field, and the opening balance amount is entered in the Debit column in order to remove or reduce the opening balance. (jurisdiction: United States (en-US edition of the QuickBooks Online help article; amounts stated in US dollars and country selector set to United States), entity_scope: Businesses using QuickBooks Online, per the products the article lists itself as applying to, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, QuickBooks Online Plus, QuickBooks Online Simple Start, QuickBooks Online Essentials, QuickBooks Ledger, Intuit Enterprise Suite; article updated 8/5/2026)

“Select the liability account from the Account field. To remove or reduce the opening balance, enter the opening balance amount in the Debit column.”

Within the selected bank account, the loan receipt is entered from the Add Transaction dropdown in the top right corner of the page, by selecting Deposit from Other Accounts under Money In. (jurisdiction: United States (page served as the US-EN / United States English edition; other country editions are listed separately), entity_scope: Businesses using Zoho Books to record loans they have received, platform: Zoho Books, platform_edition: United States (US-EN) edition of the Zoho Books knowledge base, conditions: Working inside the bank account that received the loan)

“Click the Add Transaction dropdown in the top right corner of the page and select Deposit from Other Accounts under Money In .”

Not established from an authoritative source.

Why less money landed than the amount you borrowed

For each loan guaranteed under SBA's 7(a) program the lender must pay SBA an Upfront Fee (also called the SBA Guaranty Fee), and the lender is permitted to pass the cost of that fee on to the borrower. (jurisdiction: United States, entity_scope: SBA 7(a) lenders and loans guaranteed under the 7(a) program)

“Lenders must pay an Upfront Fee (also known as an SBA Guaranty Fee) for each loan guaranteed under the 7(a) program but are permitted to pass the cost of the fee on to the borrower.”

The lender must pay SBA a Lender's Annual Service Fee (also called the SBA On-Going Guaranty Fee), calculated on the outstanding principal balance of the guaranteed portion of the loan at the time of SBA loan approval, and this fee cannot be charged to the borrower. (jurisdiction: United States, entity_scope: SBA 7(a) lenders and loans guaranteed under the 7(a) program)

“Lenders must pay the Lender’s Annual Service Fee (also known as the SBA On-Going Guaranty Fee) based on the outstanding principal balance of the guaranteed portion of a loan at the time of SBA loan approval. This fee cannot be charged to the borrower.”

For Working CAPline loans, additional fees may be charged by the lender because these loans require continual servicing and monitoring of collateral. (jurisdiction: United States, entity_scope: SBA 7(a) Working CAPline loans, conditions: Working CAPline (asset-based revolving line of credit) loans only)

“Because these loans require continual servicing and monitoring of collateral, additional fees may be charged by the lender.”

The Update states that FASB Concepts Statement No. 6 says debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate, and that the (pre-amendment) requirement to recognize debt issuance costs as deferred charges conflicts with that guidance. (jurisdiction: United States, entity_scope: Nongovernmental entities applying U.S. GAAP, accounting_basis: U.S. GAAP (FASB Accounting Standards Codification))

“Additionally, the requirement to recognize debt issuance costs as deferred charges conflicts with the guidance in FASB Concepts Statement No. 6, Elements of Financial Statements, which states that debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate.”

Not established from an authoritative source.

Recording the deducted charges, prepaid amounts and reserves so the balance equals what you owe

A discount or premium arising from determining present value in cash or noncash transactions is not an asset or liability separable from the note that gives rise to it, and therefore shall be reported in the balance sheet as a direct deduction from, or addition to, the face amount of the note. (jurisdiction: United States, entity_scope: Nongovernmental entities applying U.S. GAAP, accounting_basis: U.S. GAAP (FASB Accounting Standards Codification), effective_from: Public business entities: fiscal years beginning after December 15, 2015 and interim periods within those fiscal years; all other entities: fiscal years beginning after December 15, 2015 and interim periods within fiscal years beginning after December 15, 2016, conditions: Does not apply to liabilities reported at fair value (paragraph 835-30-45-1))

“835-30-45-1A The discount or premium resulting from the determination of present value in cash or noncash transactions is not an asset or liability separable from the note that gives rise to it. Therefore, the discount or premium shall be reported in the balance sheet as a direct deduction from or addition to the face amount of the note.”

Debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note. (jurisdiction: United States, entity_scope: Nongovernmental entities applying U.S. GAAP, accounting_basis: U.S. GAAP (FASB Accounting Standards Codification), effective_from: Public business entities: fiscal years beginning after December 15, 2015 and interim periods within those fiscal years; all other entities: fiscal years beginning after December 15, 2015 and interim periods within fiscal years beginning after December 15, 2016, conditions: Does not apply to debt issuance costs of liabilities reported at fair value (paragraph 835-30-45-1))

“Similarly, debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note.”

The article states that restricted funds to be used within one year are classified as current assets, and restricted funds not to be used within one year are classified as long-term assets — i.e. restricted funds are carried as assets, classified by the timing of their intended use. (jurisdiction: United States, entity_scope: organizations presenting classified balance sheets, conditions: classification turns on whether the restricted funds are to be used within one year)

“If restricted funds are to be used within one year, they are classified as current assets . Otherwise, they are classified as long-term assets .”

In the article's sample disclosure statement, funds held in escrow accounts and cash collateral required under certain loan agreements are described as restricted cash, being unavailable for general corporate use and legally or contractually restricted as to withdrawal or use; this is illustrative sample wording, not a stated requirement. (jurisdiction: United States, entity_scope: illustrative sample footnote disclosure for a company holding escrowed funds and loan cash collateral, conditions: presented as “A sample disclosure statement”)

“Restricted cash consists of funds held in escrow accounts and cash collateral required under certain loan agreements. These amounts are not available for general corporate use and are legally or contractually restricted as to withdrawal or use.”

Partly established. Established: how deducted charges are recorded (S08). Missing: how prepaid amounts are recorded; how funded reserves are recorded; how amounts disbursed directly to third parties are recorded.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

Money the lender paid straight to a seller, an escrow or your previous lender

See The article states that restricted funds to be used within one year are classified as current assets, and restricted funds not to be used within one year are classified as long-term assets — i.e. restricted funds are carried as assets, classified by the timing of their intended use.

See In the article's sample disclosure statement, funds held in escrow accounts and cash collateral required under certain loan agreements are described as restricted cash, being unavailable for general corporate use and legally or contractually restricted as to withdrawal or use; this is illustrative sample wording, not a stated requirement.

In the article's sample disclosure statement, $500,000 held in escrow in connection with a pending acquisition is itemised as a component of the restricted cash balance; this is illustrative sample wording, not a stated requirement. (jurisdiction: United States, entity_scope: illustrative sample footnote disclosure for escrowed acquisition funds, conditions: sample facts: acquisition pending, expected to complete in Q2 2025)

“$500,000 held in escrow related to a pending acquisition, which is expected to be completed in Q2 2025.”

In the article's sample disclosure statement, $300,000 pledged as collateral for a letter of credit facility is itemised as a component of the restricted cash balance and remains restricted for the duration of the agreement; this is illustrative sample wording, not a stated requirement. (jurisdiction: United States, entity_scope: illustrative sample footnote disclosure for cash pledged as collateral, conditions: sample facts: restriction runs for the duration of the agreement, through December 2025)

“$300,000 pledged as collateral for a letter of credit facility, which remains restricted for the duration of the agreement through December 2025.”

Not established from an authoritative source.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

Splitting the loan between what's due in the coming year and the rest

On the balance sheet, the current portion of the noncurrent note payable ($18,000) is reported under Current Liabilities, while the remaining balance ($342,000, being $360,000 less $18,000) is classified and displayed under noncurrent liabilities. (jurisdiction: United States (US GAAP as taught by the text; the text refers to generally accepted accounting principles (GAAP), the SEC, and a State Tax Board), entity_scope: Illustrative worked example: Sierra Sports, the textbook's fictional retail sporting-goods company, conditions: illustrative worked example; balance sheet at a date when $18,000 of the $360,000 note is due in the current period)

“The current portion of the noncurrent note payable ($18,000) is reported under Current Liabilities, and the remaining noncurrent balance of $342,000 ($360,000 – $18,000) is classified and displayed under noncurrent liabilities, as shown in Figure 12.7 .”

The article defines the current portion of long-term debt as the principal amount of a long-term borrowing scheduled to be repaid within one year of the balance sheet date. (jurisdiction: United States (US professional-education publisher; the article states no explicit jurisdiction), entity_scope: businesses preparing a classified balance sheet)

“The current portion of long-term debt represents the principal amount of a long-term borrowing that is scheduled to be repaid within one year of the balance sheet date.”

The amount of the current portion is determined from the contractual repayment schedule and excludes accrued interest, which the article says is reported separately as interest payable. (jurisdiction: United States (US professional-education publisher; the article states no explicit jurisdiction), entity_scope: businesses preparing a classified balance sheet)

“The amount is determined based on the contractual repayment schedule and excludes accrued interest, which is reported separately as interest payable.”

Each reporting period, the portion of principal due in the upcoming year is reclassified from noncurrent to current liabilities. (jurisdiction: United States (US professional-education publisher; the article states no explicit jurisdiction), entity_scope: businesses preparing a classified balance sheet, conditions: performed each reporting period)

“Each reporting period, the portion of principal due in the upcoming year is reclassified from noncurrent to current liabilities.”

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

Which loan documents give you each figure, and what you check the balance against

SBA publishes the amount of the Upfront Fee and of the Lender's Annual Service Fee each fiscal year, through an Information Notice, for all loans approved during that year. (jurisdiction: United States, entity_scope: SBA 7(a) loans approved in the fiscal year covered by the notice)

“SBA publishes the amount of the Upfront Fee and the Lender’s Annual Service Fee each fiscal year for all loans approved during that year through  an Information Notice .”

For a 504 loan, the authorization is SBA's written agreement with the CDC setting out the terms and conditions under which SBA will guarantee a business loan. (jurisdiction: United States, entity_scope: CDCs and CDC/504 loans)

“The authorization is SBA’s written agreement with the CDC providing the terms and conditions under which SBA will guarantee a business loan.”

A 504 loan moves from "approval" status to "regular servicing" status when three conditions are met: it is closed in accordance with the terms and conditions of the loan authorization, the final disbursement has been made, and SBA's guaranty fee has been paid. (jurisdiction: United States, entity_scope: CDC/504 loans)

“A loan moves from “approval” status to “regular servicing” status when the following three conditions are met It’s closed in accordance with the terms and conditions of the loan authorization The final disbursement has been made SBA’s guaranty fee has been paid”

Not established from an authoritative source.

The basis for treating borrowed money as a liability rather than revenue

See When the bank loan is taken out, the proceeds are recorded by crediting Notes Payable (a liability) for the full loan principal and debiting Cash — no revenue account is used.

See A customer prepayment is carried in an unearned revenue account, which cannot be recognized as earned revenue until the product is provided; that unearned revenue account is a current liability account that is increased by a credit as the outstanding obligation to the customer grows.

See On a cash sale subject to sales tax, Cash is debited for the sale amount plus sales tax, Sales Tax Payable is credited for the tax (here 6% of $18,000) as a liability owed to the State Tax Board, and Sales is credited only for the original sale amount excluding the tax — so part of the cash received is a liability rather than revenue.

Partly established. Established: amounts received under a borrowing are recorded as a liability rather than as revenue (S01). Missing: the basis for that treatment.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

Where the borrowing sits in the chart of accounts and on the balance sheet

See When the bank loan is taken out, the proceeds are recorded by crediting Notes Payable (a liability) for the full loan principal and debiting Cash — no revenue account is used.

See On the balance sheet, the current portion of the noncurrent note payable ($18,000) is reported under Current Liabilities, while the remaining balance ($342,000, being $360,000 less $18,000) is classified and displayed under noncurrent liabilities.

See A discount or premium arising from determining present value in cash or noncash transactions is not an asset or liability separable from the note that gives rise to it, and therefore shall be reported in the balance sheet as a direct deduction from, or addition to, the face amount of the note.

See Debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.

What your accounting software needs in order to route the deposit to a loan account

See QuickBooks Online lets a user set up a liability account to record a loan and its payments; that account tracks what the user owes, and the deposit of the loan money into the user's bank account can also be recorded.

See Where the loan is not being paid off within the fiscal year, the account described is a Long Term Liabilities account type with the Notes Payable detail type.

See Where the loan is being paid off by the end of the fiscal year, the account described is an Other Current Liabilities account type with the Loan Payable detail type.

See For the line-of-credit principal account, the article instructs selecting Other Current Liabilities from the Account type dropdown.

See For the line-of-credit principal account, the article instructs selecting Line of Credit from the Detail type dropdown.

See For the account that will record the loan received, the Account Type is set to Other Current Liability, or to any other liability account chosen on the basis of the loan received, and other necessary details are entered; the document leaves the choice of liability account type open rather than fixing it to Other Current Liability.

See For a new loan that has been deposited to the user's bank, the Opening Balance is left at US $0.

See Where a loan has been added with an opening balance other than $0 and the user's bank feeds show the deposited loan amount, the deposit into the bank account is recorded with an additional journal entry.

See In that journal entry, the liability account is selected in the Account field, and the opening balance amount is entered in the Debit column in order to remove or reduce the opening balance.

See Within the selected bank account, the loan receipt is entered from the Add Transaction dropdown in the top right corner of the page, by selecting Deposit from Other Accounts under Money In.

Not established from an authoritative source.

The charges and fees that come out before the money reaches you

See For each loan guaranteed under SBA's 7(a) program the lender must pay SBA an Upfront Fee (also called the SBA Guaranty Fee), and the lender is permitted to pass the cost of that fee on to the borrower.

See The lender must pay SBA a Lender's Annual Service Fee (also called the SBA On-Going Guaranty Fee), calculated on the outstanding principal balance of the guaranteed portion of the loan at the time of SBA loan approval, and this fee cannot be charged to the borrower.

See For Working CAPline loans, additional fees may be charged by the lender because these loans require continual servicing and monitoring of collateral.

See The Update states that FASB Concepts Statement No. 6 says debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate, and that the (pre-amendment) requirement to recognize debt issuance costs as deferred charges conflicts with that guidance.

Not established from an authoritative source.

How deducted charges, reserves and escrowed amounts are recorded

See A discount or premium arising from determining present value in cash or noncash transactions is not an asset or liability separable from the note that gives rise to it, and therefore shall be reported in the balance sheet as a direct deduction from, or addition to, the face amount of the note.

See Debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note.

See The article states that restricted funds to be used within one year are classified as current assets, and restricted funds not to be used within one year are classified as long-term assets — i.e. restricted funds are carried as assets, classified by the timing of their intended use.

See In the article's sample disclosure statement, funds held in escrow accounts and cash collateral required under certain loan agreements are described as restricted cash, being unavailable for general corporate use and legally or contractually restricted as to withdrawal or use; this is illustrative sample wording, not a stated requirement.

Not established from an authoritative source.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

When the current portion must be shown separately, and how it is worked out

See On the balance sheet, the current portion of the noncurrent note payable ($18,000) is reported under Current Liabilities, while the remaining balance ($342,000, being $360,000 less $18,000) is classified and displayed under noncurrent liabilities.

See The article defines the current portion of long-term debt as the principal amount of a long-term borrowing scheduled to be repaid within one year of the balance sheet date.

See The amount of the current portion is determined from the contractual repayment schedule and excludes accrued interest, which the article says is reported separately as interest payable.

See Each reporting period, the portion of principal due in the upcoming year is reclassified from noncurrent to current liabilities.

Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.

The loan documents that carry the principal, charge and disbursement figures

See SBA publishes the amount of the Upfront Fee and of the Lender's Annual Service Fee each fiscal year, through an Information Notice, for all loans approved during that year.

See For a 504 loan, the authorization is SBA's written agreement with the CDC setting out the terms and conditions under which SBA will guarantee a business loan.

See A 504 loan moves from "approval" status to "regular servicing" status when three conditions are met: it is closed in accordance with the terms and conditions of the loan authorization, the final disbursement has been made, and SBA's guaranty fee has been paid.

Not established from an authoritative source.