This would be considered a business
loan, so the interest rate would be outside of the usury laws setting maximum interest for personal loans between individuals. The interest they could charge would be the interest rate that is reasonably and customarily charged in your area for a business loan. There also needs to be a written loan agreement with the company showing the loan and the terms. It is legal as long as the board approves after full disclosure of the terms and the terms are no different than the reasonable and customary terms of these loans.
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