I received a $5 loan when I traded for Dallas Kuechel earlier this year. If I turn around and trade him, what happens to that money? Do I lose it?
No, you will keep the loan until the season ends.
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The loan should be considered just another part of the trade. It isn’t tied to Kuechel. All loans you receive and send are kept until the end of season. So if you have 4 loans out of $20 that reduces your cap by $20 until end of season. If you have 2 incoming loans of $10 that increases your cap by $20 until end of season. These persist outside of the players that were parts of the trade that accompanied the loan.
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Ok that makes sense. Thanks guys