Director A hires Company B to complete work for him. Company B has very little to no other income stream to repay debt other than completion of construction project for Director A. Are there any Reg O issues with this request? I think I am over thinking Reg O requirements.

I'm not sure what Reg O would have to do with Dir A hiriing Co B to do whatever work they do for him? Can you be more specfic about what your concerns are?

I think what has me curious is the loan is being repaid from our directors funds. The borrower has no other income except what is coming from our director. Like I said, I really think I am WAY over thinking this.

Well... is the loan to finance the work to be done for the director? If so then you might have to look at this being a "straw" borrower for the director or is the director getting an economical benefit through this arrangement?

"Company B has very little to no other income stream to repay debt other than completion of construction project for Director A."

How was the loan ever approved? Sounds like a misuse of position to me if the director influenced the decision and the borrower did not qualify under general credit underwriting guidelines.