Business & farm

Loans are not counted as income.  

The fees paid to get the loan are deductible.  Yes the loan fee is deductible.

When you enter the expenses for the Sch C business. there is a Section called Business Expenses, and under that "Other Common Business Expenses" and then go to "Other Miscellaneous Expenses" and deduct the amounts here for the fees paid (which includes that $800).