When somebody goes to bank and takes out a note payable for business expansion does that get added to their capital also to show investment?

The journal entry to record the note payable is:
Debit Cash for the amount of funds received
Credit Notes Payable for the amount

When you use the funds the journal entry is:
Debit the apporpriate Asset account for the amount
Credit Cash for the amount

So if the funds are used for expansion then the organization, the funds used will be a capital expense.