Business Loans

Credit transactions involving extensions of credit primarily for business, commercial or agricultural purposes, and loans to government entities or organizations are exempt, as are certain other transactions not applicable here.  (15 U.S.C. § 1603.)  If a loan is to be considered exempt because there is a business purpose for the loan, an explicit statement of business purpose should be obtained from the borrower and close scrutiny should be given to the circumstances of the loan to see if applicable case law would uphold the business purpose exemption.  (Return to Article.)

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