Participant is 100% vested in $5,500 account balance. Wants to borrow $1,000. She is married and Plan is subject to J&S requirements. Must spousal consent be obtained? or is it unneccesary because loan is less than $5,000?

Spousal consent is required. Whether participant and spousal consent are required is determined by the amount of the nonforfeitable accrued benefit, not by the amount of the distribution. See Sections 417(e)1) and 411(a)(11).

If the plan isn't a pension plan (i.e. it's a profit-sharing or a stock bonus plan) and a few other requirements are met, then the plan is subject to spousal consent only once an annuity option is elected, not before then. Hence, some plans will treat loans as not requiring spousal consent because the spousal consent rules only spring into effect once an annuity option is selected.