If a candidate obtains a bank loan 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.
Reporting on candidate forms
House and Senate committees report bank loans obtained by the candidate on Form 3, Line 13(b). 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 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.
A committee that obtains a loan from a bank or other permissible lending institution must also file Schedule C-1 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 committee that has obtained a line of credit, a new Schedule C-1 must be filed with the next report whenever the committee draws on the line of credit. For loans derived from a candidate loan, the reporting on Schedule C-1 is simplified. The committee treasurer or designated assistant treasurer must sign the schedule on Line G and attach a copy of the loan agreement. Finally, an authorized representative of the lending institution must sign the statement on Line I.
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.