Allow me to step and help you record payments made by SBA on a loan of a client, kmckeesvs.
You can create an asset account to track the payment you receive. Then, enter a journal entry using the asset account to reduce your loan.
Upon sharing this solution, I still suggest consulting with your accountant to ensure you have accurate records on your register. Also, he/she can provide instructions on what accounts to debit or credit on the journal entry.
Stay in touch with me by commenting below. I'm always right here whenever you need additional information about recording the payment made by SBA.
