The definition of "business loan" is provided in the following section of OCC bulletin 94-37b:
III. Section-by-Section Analysis
Sec. ____.2 Definitions.
(d) Business Loan
The agencies are adopting the proposed definition of ``business loan'' as a loan or extension of credit to any corporation, general or limited partnership, business trust, joint venture, pool, syndicate, sole proprietorship (including an individual engaged in farming) ), or
other business entity. The definition is used in connection with the exemption for business loans of $1 million or less that are not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment. Commenters suggested that the agencies amend the definition of business loan to include loans to individuals for business purposes and to permit use of the exemption when individuals lease real estate to a
related business. Loans to individuals are included in the definition of business loan as loans to sole proprietorships and other business entities. This exemption does not apply to loans to individuals that are consumer or personal loans. Therefore, the agencies do not believe
that it is necessary to amend the definition.
Some additional discussion and examples are in the appraisal exemption discussion in this bulletin but it's still a little bit unclear in some situations. I've just been looking to the purpose of the loan as well as the entity. If it's to an individual but for a business purpose I've been considering it a business loan based on a liberal reading of the definition in the OCC bulletin.
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Not a legal opinion, just my personal opinion.
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