How do I record payments for an SBA loan?

Hello there, @dancer51.

I appreciate you taking the time to drop by here in the Community space. I'm here to show you how to set up the loan and enter payments in QuickBooks Online.

When setting up a liability account to record the loan, you can select Notes Payable or Loan Payable as the detail type. The option is available if you choose Long Term Liabilities or Other Current Liabilities from the Account Type dropdown (see screenshot below).

If you're unsure of the setup in the chart of accounts, I recommend consulting an accountant. They can provide expert advice and additional guidance to ensure your books are accurate and error-free.

When you're ready to pay back the  loan, follow these steps to record each repayment:

1. Click the + New option.
2. Select Check.
3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.
4. Go to the Category details section of the check.
5. On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
6. Within the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
7. On additional lines, add any additional fees and select the appropriate accounts from the Category dropdown.
8. Hit Save and close.

When handling loans in QuickBooks, you also need to record the money you got from the loan. For the step-by-step process, check this link: Set up a loan in QuickBooks Online.

Setting up your chart of accounts correctly for your company is important. I've included an article you can visit for your reference about the account types and the customizations you can perform in QuickBooks: Learn about the chart of accounts in QuickBooks Online.

Use this thread to reply if you have additional questions regarding setting up the loan. We'll be sure to get back and lend a hand.