Some information presented in this publication has been modified by the Bipartisan Campaign Reform Act of 2002 (BCRA). An updated version of this publication will be available once the Commission completes its BCRA rulemakings. In the interim, please visit the FEC’s BCRA page for additional information.
Supporting Federal Candidates: A Guide For Citizens
If you loan money to a candidate or political committee, you have made a contribution, even if you charge interest on the loan. The outstanding amount of the loan counts against the contribution limits. Loan repayments, therefore, decrease the amount of your contribution. Nevertheless, if your loan exceeds the limits, it is an illegal contribution, even if it is later repaid in full.
Endorsements and guarantees of bank loans are also considered contributions. Endorsers and guarantors are liable for equal portions of a loan unless the agreement states otherwise. You alone, therefore, may not endorse a $5,000 loan to a candidate committee. There must be four other individual endorsers so that each one is liable only for $1,000, the per-election limit. Repayments made on a loan reduce the amount of your liability and thus reduce the amount of your contribution.
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