WHAT IS A LOAN?

A loan is anything you receive from someone that you agree to pay for at a later date.

You can make the loan agreement with a lending institution such as a bank, or an individual, such as a friend or relative.

You can make it orally or in writing, but it must be enforceable under State law.

A loan can be:

    small blue and black arrowcash;
    small blue and black arrowfood; or
    small blue and black arrowshelter items (rent, mortgage, utility bills, etc.).
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HOW DOES A LOAN AFFECT MY SSI BENEFIT?

If you enter into a valid loan agreement, the value of the cash or item you receive is not income and does not reduce your Supplemental Security Income (SSI) benefit.

However, any funds that you borrow which you do not spend in that month will count toward your SSI resource limit of $2,000 for an individual (or $3,000 for a couple) the next month.

If you lend money to someone else, the money they owe you may be a countable resource and may affect your eligibility for SSI.

DOES INTEREST ON A LOAN COUNT AS INCOME FOR SSI?

If you lend money to someone else, and we count the loan agreement as a resource, then we do not count the interest you receive as income.


THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE INTERNET,
OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE.