Mathew owns 4% of the shares of Big Bang Ltd. He is also employed by Big Bang Ltd. in a middle management position. On August 1, 2021, Mathew received a loan from Big Bang Ltd. that he used to repay personal debts. Mathew signed a loan agreement, agreeing to pay interest on the loan at the bank prime rate in effect on August 1, 2021, and to repay the loan over three years by monthly payroll deductions. Similar loans have been made in the past to mid-level management employees. Big Bang Ltd. has a December 31 year-end. Determine the tax implications of the loan for Mathew.