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#198399 - 06/08/04 10:38 PM Political Campaign funds
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
Is a loan to an individual to run their political campaign
reportable as a Small Business Loan? (under $1mm) Or would that be considered a Nonprofit? It is not real estate secured.

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CRA
#198400 - 06/09/04 09:23 PM Re: Political Campaign funds
HRH Dawnie Offline
Power Poster
HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
I have dificulty trying to make this a small business loan. Remember the three issues to think about:

Purpose
Borrower
Collateral

Your purpose is a personal gain (office). This isn't a business (though many do make a great deal of money from the goober they do while in office) The benefit or winning the office isn't a business in any form.

The borrower is a consumer (or did you do the loan under their political fund/organizationname?)

And those two then weigh together more than the third issue Collateral. While it really isn't important because issue one and two cover your choice, on a normal loan this would weigh in as the other 3rd of your decision.

It's either a loan to a not for profit campaign fund/organization (check that borrower issue) which is not reportable, or it's a consumer loan.
_________________________
Dawn Coursey VP/CRA Queen

CRA Rating is in...Oh who cares...I'm home with the baby.

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