A deduction from income is allowed for the amount of “net interest” received from loans made to a trade or business located in the Enterprise Zone. The lender is not required to be located within the Zone.
• Funds must be loaned after the Enterprise Zone was designated.
• Loan must be made to a business located solely within the Enterprise Zone.
• Loan proceeds must be used only for the trade or business activities within an Enterprise Zone.
• Lender may not have any type of ownership interest in the business.