Entering a SBA Loan into my accounting system
(Crystal Lake, IL)
We received a loan for $700,000, after giving a commitment fee of $7,500.
The majority of the funds never hit our bank. Instead, some of the funds were distributed via cashiers checks made payable to us and to our vendors we owed money to. These were mailed by us, after signing the back, to each vendor.
Also, we received a large reimbursement for bills we had already paid. The amount was calculated from a list we created called a Sworn Owners Statement. This statement showed how much money was paid to vendors by categories the SBA Loan people chose: Working Capital, Inventory, Equipment, Leasehold Improvements, and other categories.
Also, closing costs of almost $30,000 were included in the loan.
Then the bank returned our commitment money ($7,500) and gave us back $62,000, lowering our beginning loan balance to approx. $639,500.
I have NO idea how to enter these transactions! I spoke with two friends who are accountants, but their replies were confusing and conflicting.
Please help me so that I can close 2013 to my boss's and my own satisfaction.
I use Quickbooks, but do understand how to create journal entries.
Well, maybe understand is too strong a word or I wouldn't need to ask you for help.
Matilda in Ill-annoy
There's a saying, if you ask 10 accountants a question, you'll get 10 answers. That said...
You have a couple of transactions here, but it's hard to give you a specific entry to make without all the info.
Can you send me a personal email, to email@example.com, and tell me the amounts of the bills that the loan paid off, how much your company received for bills your company had already paid (and was this personally), the bank / loan fees involved, actual proceeds of the loan - as in money actually deposited into the bank, if any.
You can find this info on the loan statement received at closing.
I'd be glad to help!