Consumer Loan written as commercial loan

Unsecured, $250,000 note. The borrower is a business but the purpose is consumer. (paying off business owner's daughter's credit card debt). What are the ramifications? This loan is being included on the RC-C.4 schedule on the call report, which I believe is inaccurate. What else? Its not Know Before you Owe, and over Regulation Z thresholds. I feel like I am missing other things that are bad.

I can't think of anything if it was the business that borrowed the money.

Unsecured, $250,000 note. . . . . . . . (paying off business owner's daughter's credit card debt).

Loans in excess of $54,600, unless secured by a dwelling or real property, is exempt from Reg. Z.