Here's an interesting one: $85,000 loan in an individual's name to buy a partial subsription into an LLC for the purpose of acquiring tax credits.

Personal investment or legitimately commercial?

Nobody wants to attempt this one?

I would if I could....but no clue. Sorry...

I would say it depends upon the primary business the borrower is engaged in and its relation to the business purpose of the LLC.

I agree with ICG. The Call Report doesn't give you real clear cut guidelines to follow, so I usually use the old Reg Z test to determine if an investment is business or personal.

The borrower is doing this in his individual name because he owns or is part owner in 6 different businesses and he plans to distribute the tax credits being purchased amongst them according to need.

This is a tough one.

I would just be guessing here.

If he is purchasing an interest in an LLC for the tax credit AND giving the tax credits to his other companies I would probably code it as a small business loan.

That is what I would do with it too.

I would too.

OK, thanks y'all!

That other thread about personal investment has me a little spooked....