If a candidate obtains a bank loan or a loan derived from an advance on the candidate’s brokerage account, credit card, home equity line of credit or other line of credit, and the loan is used for campaign-related purposes, the committee must report the loan from the candidate as a receipt. Both the original loan and payments to reduce principal must be reported on Schedule C for each reporting period until the loan is repaid. A committee that obtains a loan from a bank must also file Schedule C-1 with the first report due after incurring the new loan. Loans obtained by an individual prior to becoming a candidate that are subsequently used to influence the candidate’s election to Federal office must be reported as an outstanding loan owed to the candidate by the principal campaign committee, if the loan is outstanding at the time an individual becomes a candidate.
Reporting on candidate forms
House and Senate committees report bank loans or loans derived from advances on the candidate’s brokerage account, credit card, home equity line of credit or other line of credit obtained by the candidate on Form 3, Line 13(a). The committee itemizes receiving the loan, regardless of the amount, on Schedule A, supporting Line 13(a).
For example, Martha Washington obtains a $20,000 loan from the bank and loans the money to her principal campaign committee.
When the committee discloses receiving the loan, it will also disclose details about the loan, including the type of loan the candidate receives (i.e., bank loan, brokerage account, credit card, home equity line of credit, other line of credit, personal funds of the candidate) on Schedule C. Schedule C will be filed continuously for each reporting period until the loan is paid off. It will show the loan’s original amount, the terms between the candidate and the committee, payments made, and the outstanding balance at the close of the reporting period.
The committee must also file a Schedule C-1 to disclose the terms between the candidate and the bank or other permissible lending institution with the first report due after a new loan or line of credit has been established. A new Schedule C-1 must also be filed with the next report if the terms of the loan or line of credit are restructured. Additionally, in the case of a candidate that has obtained a line of credit, a new Schedule C-1 must be filed with the next report whenever the candidate draws on the line of credit. For loans derived from a candidate loan, the reporting on Schedule C-1 is simplified. For electronic filers, the Schedule C-1 can be filed electronically. For this type of loan, neither the treasurer’s signature nor lender certification is required. The committee is not required to submit the loan agreement to the Commission.
Reporting with FECFile
Enter the loan in the Loans, Debts and Obligations tab. Click the “Schedule C-1” button to enter information about the loan and the terms between the candidate and the bank.