#loans
Track and manage business loans, interest, and repayment schedules
FASB's ASU 2025-08 extends the CECL gross-up approach to purchased seasoned loans, eliminating the Day 1 provision expense on healthy acquired loan portfolios. Effective for annual periods beginning after December 15, 2026, with early adoption permitted — here's who qualifies, how the mechanics work, and how to prepare before your next acquisition.
FASB's ASU 2025-09, issued November 2025, makes five targeted fixes to hedge accounting: a 'similar risk' standard for grouped cash flow hedges, a 'choose-your-rate' framework for variable-rate debt, broader nonfinancial asset hedge eligibility, simpler net written option rules, and dual hedge mismatch relief. Public companies must comply for periods beginning after December 15, 2026; private companies get until after December 15, 2027, with early adoption permitted.
A UCC-1 financing statement lapses exactly five years after filing unless the lender files a UCC-3 continuation within the six months before the lapse date — and paid-off liens that never get terminated can quietly block your next SBA loan. Here's how to search your own UCC record and clear stale filings before a lender finds them.
How buy-here-pay-here dealers should book installment notes receivable, separate unearned finance charges from vehicle-sale revenue, reserve for repossessions on portfolios where ~78% of loan volume is subprime, and structure a Related Finance Company that survives an IRS audit — plus why accrual accounting and year-of-sale gain recognition are mandatory for dealer inventory.
On February 27, 2026, the Delaware Supreme Court's Rutledge v. Clearway ruling upheld the 2025 SB 21 amendments to DGCL Section 144, confirming a safe harbor for related-party deals — including founder bridge loans and insider SAFE participation — approved by disinterested directors or a majority-of-the-minority vote. Here's what founders must document to qualify.
The Federal Reserve's 2025 Small Business Credit Survey found only 42% of applicants received full funding and 22% received nothing. Full-approval rates ranged from 57% at small banks to a 46% denial rate at large banks, and the top denial reasons — credit score (45%), collateral (36%), cash flow (33%) — are largely visible in a business's own books before applying.
Insurance premium financing lets a small business spread an annual commercial premium into monthly installments at 4-14% simple interest — far below the 22-28% APR typical of business credit cards in 2026. This guide covers how the three-party loan works, standard fees and down payments, the power-of-attorney clause that lets the lender cancel your policy on default, and how to correctly book the prepaid asset and loan liability.
Minnesota's HB 4188 redefines 'arranging' small-dollar and short-term consumer loans to include marketing, lead generation, underwriting, and collections. Starting August 1, 2026, lead generators, affiliates, and referral partners handling loans of $1,300 or less may need a Regulated Loan license — Connecticut has already fined an unlicensed mortgage lead generator $50,000 under a similar regime.
CDFIs are Treasury-certified mission-driven lenders that approve roughly 23-30% of small business applicants versus 13-15% at large banks, fund true startups with no hard credit minimums, accept ITINs in place of Social Security numbers, and offer fixed rates as low as 7%. Here's how CDFI underwriting works, who qualifies, and how to apply.
A term loan charges interest on the full lump sum from day one; a line of credit only charges for what you draw. This guide compares 2026 rates (bank term loans 6.8%–11%, SBA 7(a) 9.75%–13.25%, bank lines 8%–14%), qualification bars, and a three-question framework for choosing the right product.
Calculate FCCR with a complete worked example, compare it with DSCR, and check the agreement-specific treatment of rent, taxes, distributions and covenant thresholds.
The Rule of 78 front-loads loan interest so a lender on a 48-month, $8,000-interest equipment loan has earned about 74% of that interest by month 24 — gutting the savings from early payoff. Here's how precomputed loans work, where they're still legal under 15 U.S.C. § 1615, and how to spot one before you sign.
