Lenders making loans to Enterprise Zone businesses may qualify for net interest deductions. As a borrower, this could mean lower rates or better terms on a loan.

Qualifying loans must be made to businesses located solely within the Zone and may fund only business activities that are conducted entirely within the Zone. The lender may not have an equity interest in the business.

Other limitations and record keeping requirements apply. For complete details refer to the Franchise Tax Board's Enterprise Zone Guidelines (FTB 3805Z) or contact your tax advisor.

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