IRS Publishes Per Diem Rates for Business Travelers for 2026-2027

The IRS’s release of per diem rates for 2026-2027 directly impacts middle-market credit professionals managing borrower expenses and cash flow projections. Updated rates influence travel cost allowances embedded in borrower budgets and covenant calculations, affecting liquidity assessments and covenant compliance monitoring. Understanding these adjustments is crucial for accurate forecasting and risk evaluation in leveraged finance transactions, where travel expenses can materially alter operating margins and debt service capacity. Staying current on IRS guidelines ensures precise credit underwriting and portfolio management.