At your suggestion, when Steve and his father started having some troubles, he came to you and asked about how you handle your older boys. While you mostly used groundings or restrictions, a few swats with the paddle dealt with minor problems. Steve wasn't adverse to that, and a Jokari paddle was added to the mix. A couple of swats for minor problems cleared the air quickly, and was enough to satisfy both of them without dragging things on forever.
Today Steve came to you without his father, and admitted that he has a little problem of his own. A couple of months ago, Steve got a ticket. It was no big deal, except he was a bit short on cash, and he had summer plans and didn't want his dad getting mad at (read: grounding) him, then he kind of forgot about it. Now the ticket has gone to warrant, and he has to pay it immediately if he wants to avoid being arrested.
He's come to you, asking to borrow money. He admits he's screwed up, and he's willing to pay interest. He just doesn't want his dad to find out, both because he's pretty embarrassed, and because he's afraid his dad will make a huge deal out of it and just not let it go. Also, he admits he's heard the base canard that you paddle your kids when they get tickets (untrue - you only paddle them if there are extenuating circumstances, like you told them three times they need to leave if they want to be on time, then they get caught speeding so they won't be late). After admitting that, he stresses that he's willing to pay interest.
For reference, Steve is starting school in a couple of weeks, but he's going to the local college, and will continue to live at home. Also, you're pretty close friends with his dad and step-mother. Finally, the amount of money he's asking to borrow is no big deal, and you can afford to give it to him, much less loan it.
Are you going to make the loan? What terms do you give?