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#2245588 - 11/17/20 02:46 PM Individual taking out a commercial loan
SmallBank3 Offline
Member
Joined: Nov 2019
Posts: 58
I am having a brain hiccup and cannot remember the last time this came up. We have an individual wanting to take out a commercial loan for business purposes. It would be in his name with his SSN. What issues come up with this? Thanks!

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Lending Compliance
#2245589 - 11/17/20 02:54 PM Re: Individual taking out a commercial loan SmallBank3
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,907
Galveston, TX
None that I can think of. What is your concern?
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#2245590 - 11/17/20 03:02 PM Re: Individual taking out a commercial loan SmallBank3
SmallBank3 Offline
Member
Joined: Nov 2019
Posts: 58
Had a lender tell me we couldn't and I started second guessing. Some of those lenders can be tough. lol Some days I'm slightly less confident when I haven't had all the coffee and my brain is foggy.

You are always a ray of light Randy - thank you!

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#2245624 - 11/17/20 10:07 PM Re: Individual taking out a commercial loan SmallBank3
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,792
Cape Cod
Well, we are assuming that the purpose of the loan is business or commercial. If an individual wants a loan for a personal, family or household purpose, it can't be on a "commercial note" because it's not set up to provide TILA disclosures.

Only of the loan is large enough (over $58,300 currently) and isn't a private education loan or secured by real estate or a dwelling can you ignore Reg Z when the loan is for a consumer purpose.
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