Your web browser is not supported You're using Internet Explorer, some features might not work. Please switch to another browser like Chrome, Firefox, or Edge for a better experience.


An official website of the United States government Here's how you know
 **Official websites use .gov**
            
            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
            
            A **lock** ( A locked padlock ) or **https://** means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Federal Election Commission | United States of America Calendar
           Glossary
          Search
              Search


Menu
      Home
      Campaign finance data
        All data
            Raising
            Spending
            Loans and debts
            Filings and reports
            Candidates
            Committees
            Bulk data
            Campaign finance statistics
        Find elections. Search by state or ZIP code
          Look up contributions from specific individuals
      Help for candidates and committees
        All compliance resources
            Guides
            Forms
            Dates and deadlines
            Trainings
        Learn about electronic filing
          Find and contact your committee's analyst
      Legal resources
        All legal resources
            Advisory opinions
            Enforcement
            Statutes
            Legislation
            Regulations
            Court cases
            Policy and other guidance
        Search across all legal resources
          Search guidance documents
      About
        All about the FEC
            News and announcements
            Commission meetings
            Mission and history
            Leadership and structure
            Reports about the FEC
            Careers
            Working with the FEC
            Contact
        Introduction to campaign finance and elections


- Home
- ›
        Help for candidates and committees
- ›
      Handling PAC loans, debts and advances

Handling PAC loans, debts and advances A loan from a person or committee to a candidate or a political committee is a contribution to the extent that it remains unpaid. Once repaid in full, a loan no longer counts against the contributor’s contribution limit. Unlike other loans, bank loans are not considered contributions if they are made in the ordinary course of business and on a basis that assures repayment. A corporate vendor may extend credit to a political committee in the ordinary course of business and under substantially similar terms offered to a nonpolitical committee. However, it may not extend credit for a longer period of time than is normally practiced in the creditor’s trade. Any settlement of a debt between a creditor and a political committee for less than the full amount owed must comply with the debt settlement procedures prescribed by FEC rules. When an individual uses personal funds (or personal credit) to pay for a committee expense, that payment is generally an in-kind contribution from that individual. Special reporting rules apply to loans, debts and advances.
 For political action committees
      Registering as a PAC
          
          Taking in receipts as a PAC
          
          Making disbursements as a PAC
          
          Keeping PAC records
          
          Filing PAC reports
          
          Terminating a committee
 Loans
          
            Debts
          
            Advances
 Loans
        A loan is considered a contribution to the extent of the outstanding balance of the loan. (Bank loans, however, are not considered contributions if made in the ordinary course of business and on a basis that assures repayment.)An unpaid loan, when added to other contributions from the same contributor, must not exceed the contribution limit. Repayments made on the loan reduce the amount of the contribution. Once repaid in full, a loan no longer counts against the contributor’s contribution limit. However, a loan exceeding the limit is unlawful even if it is repaid in full.Besides being reported as a contribution, a loan must be continuously reported until it is fully repaid.
        Bank loans Debts
        Debts and obligations must be reported continuously until repaid.Unpaid bills and written contracts or agreements to make expenditures are considered debts.Debts and obligations (other than loans) are reported as debts owed to or by the committee on Schedule D. A debt of $500 or less is reportable once it has been outstanding 60 days from the date incurred (the date of the transaction, not the date the bill is received). A debt exceeding $500 must be reported in the report covering the date on which the debt was incurred.
        Estimating debts
        
           How to handle unpayable debts
        
           How to handle disputed debts
        
           Settling debts for less than the amount owed Advances
        When an individual uses his or her personal funds (or personal credit) to pay for a committee expense, that payment is generally an in-kind contribution from that individual. If an individual is later reimbursed by the committee, special reporting rules apply.
        Advances of personal funds for nonconnected PAC expenses


Icon representing a question
        Get help from the FEC by phone or email


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


About
          Careers
          Press
          Contact
   Privacy and security policy
          Plain language
          No FEAR Act
          Strategy, budget and performance
 Open government
          Protected Voices
          USA.gov
          Inspector General
          FOIA
 OpenFEC API
          GitHub repository
          Release notes
          FEC.gov status


Federal Election Commission
 The FEC's Twitter page
            The FEC's YouTube page Sign up for FECMail


Hide glossary Glossary Search terms